Tesla Sentiment Rattled by Low Cybertruck Trade-in Value

A trend of Tesla, Inc.’s (NASDAQ:TSLA) declining sales and brand damage is slowly sipping into one of its most prized assets, the Cybertruck. Media reports on May 20 indicate the EV giant has started accepting Cyber Truck trade-ins for the first time. The trade-ins affirm depreciation for the electric truck, yet to hit its full potential in driving the company’s needle.

While Tesla has pushed back on trade-ins as early as last year, it started offering just $65,000 for a $100,000 truck bought as early as 2024 with 6,000 miles.  The 35% markdown on a year-old truck is in stark contrast to Tesla CEO's remarks that the high-end truck will only grow in value over time. The low trade-in value also reflects a glut in supply, with inventory levels reaching record highs of 10,000 units.

According to Electrek, the trade-in offers add fuel to growing concerns that the Cybertruck has been “a commercial a flop”. The remarks come at a time when Tesla needs a catalyst to reverse a period of underperformance in the market. The stock is down by about 9% for the year.

Tesla's underperformance comes amid growing consumer concerns about Musk’s political inclination. Consumer concerns have since spilled over, triggering reduced sales, exacerbated by owners returning or selling their vehicles to distance themselves from the brand.

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