Tesla has started accepting Cybertruck trade-ins for the first time, signaling a shift in strategy as the electric pickup continues to underperform commercially and depreciate at a steep rate.
More than a year after deliveries began in late 2023, Cybertruck sales have fallen short of expectations. Initially marketed with over 1 million reservations, only about 40,000 customers converted those into actual orders. The vehicle also launched at a higher price and with lower performance than initially promised, further dampening demand.
Tesla previously refused to take Cybertrucks as trade-ins—an unusual move that raised concerns about the vehicle’s resale value. Industry observers suspected Tesla was trying to avoid taking a loss on its own depreciating product. Now, the automaker is reversing course and has begun offering trade-in estimates, at least for the AWD Foundation Series models.
For instance, one owner who purchased a 2024 Cybertruck Foundation Series for $100,000 is now being offered $65,400 by Tesla for trade-in, representing a 34.6% drop in value with just 6,000 miles driven. For comparison, typical pickup trucks lose around 20% of their value after one year and 34% after three to four years.
On platforms like CarGurus, depreciation appears even worse. Listings show Cybertruck resale values down nearly 45% after a year, indicating Tesla’s internal estimates may be optimistic. It’s also common for Tesla’s initial online trade-in estimates to be higher than final offers.
Compounding the issue, Tesla built too many Foundation Series Cybertrucks and has struggled to move inventory. In some cases, the company removed the Foundation Series badging to rebrand unsold units. As of last month, some of those vehicles had been sitting in inventory for up to six months.
The situation has prompted Tesla to slow down Cybertruck production significantly. Used car dealers are also steering clear of the model, wary of its high depreciation and lack of resale demand.
However, early buyers, disappointed by issues such as limited range, poor towing utility due to the aluminum frame, and a lack of standard truck features, are now offloading their vehicles rapidly. Despite having some advanced tech like vehicle-to-home charging, the Cybertruck’s practical shortcomings and proprietary systems have limited its appeal in the pickup market.
