Tesla now praises a compact electric van, a strategic pivot that occurs while its long-term cybertruck continues to underperform.
The potential change was revealed by Lars Moravy, Vice-President of Tesla engineering, who said that the company had actively considered a lower brother or sister for Cybertruck, in particular an eye on international markets where demand and regulatory requirements differ from the United States.
“We have always talked about making a smaller pickup,” said Moravy during an event in California during the weekend, organized by Tesla Investors and Owners. He explained that such a model could line up on the future plans of the Tesla Robotaxi platform, saying: “This type of service is useful not only for people, but also for goods … We have definitely turned into the design studio on what we could do to meet this need.”
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This marks a possible recalibration of the ambitions of Tesla electric trucks, especially since the sales of Cybertruck remain well below expectations. Tesla had predicted annual sales of more than 250,000 units, but the reality was thinking: just under 39,000 cybertrucks were sold throughout 2024, and around 11,000 have been sold so far in 2025, according to industry estimates. This figure is a fraction of what Tesla imagined when he launched the “anti-apocalypse” truck with great hopes and a cinematographic flair in 2023.
At the heart of the problem is the design and prices of the Cybertruck. Initially promised at a starting price of $ 39,900, the actual entry -level model is now starting at more than $ 60,000, with premium toppings moving near the $ 100,000 mark. The high frame of 6,000 kg of the vehicle and the sharp design have further limited its global expansion. The truck is not legitimate on the road on many markets, including Europe and China – the two largest Tesla markets outside the United States
The United Kingdom authorities seized one of the first cybertrucks imported into the country earlier this year, while another in the European Union had to be changed to adopt local security regulations due to its angular and rigid body. While Tesla has managed to extend cybertruck sales in Canada, Mexico, Saudi Arabia, water and Qatar, these remain relatively limited markets compared to the European and Chinese sectors.
Meanwhile, overall sales of Tesla vehicles continued to fall. In the second quarter of 2025, the car manufacturer recorded a 13.5% drop from one year to another, marking the second consecutive quarter of the fall in sales. Disappoint figures occur at a pivotal time for the company, which has fought against growing criticism of its controversial autonomous driving technology.
California legal challenge
Tesla’s ability to continue selling vehicles in its original California state is also under control. The California Department of Motor Vehicles has concluded an audience for a week -long court on a legal action that it brought in 2022, accusing Tesla of deceiving consumers on the capacities of its “autonomous” (FSD) and “Autopilot” systems. The DMV seeks to suspend Tesla’s sales license in the state for at least 30 days and impose monetary sanctions.
The prosecution argues that Tesla falsely marketed its features of driver assistants as almost autonomous, citing declarations of the website of the company which implied that cars could work from departure to the destination without human contribution. The commander of the DMV, Melanie Rosario, testifying as a witness, told the court that she had found Tesla’s brand around “Autopilot” and “FSD” confusing and contradictory, claiming that this gave the impression that the vehicles could behave despite the clear responsible in the young.
Tesla’s legal team has rejected, arguing that the company had always declared that drivers should remain attentive and that the systems are not entirely autonomous. However, several witnesses, including experts in vehicle automation and advertising law, have suggested that the language used by Tesla could indeed induce consumers. The case remains unanswered, but legal analysts have reported it as one with potentially large -scale implications for Tesla operations nationally.
Adding to Tesla misfortunes is the public counterposter linked to the recent appointment of the CEO Elon Musk as a face of the controversial White House office, which stimulated demonstrations outside Tesla dealers across the country earlier this year. Political spotlights, associated with the growing dissatisfaction of consumers, have only intensified the problems of the assembly of the company.
Several legal actions further complicated several proceedings. In Florida, an unjustified death affair alleges that Tesla operating on the automatic pilot struck a parked SUV, killing a 22 -year -old woman, while another collective appeal and federal probe examine “ghost braking” reports, where Teslas suddenly slams the brakes without reason, creating high -speed security risks.
In the middle of turbulence, a compact pick-up could serve as a fresh offer to re-engage the increasingly suspicious markets of Tesla’s more daring bets. Although Moravy noted that he was still in the design phase, it is not clear if a smaller truck will succeed where the cybertruck has stumbled.
