Business Insider reports Tesla is also slowing down Cybertruck manufacturing at its Texas factory and shrinking its production teams. Some line workers are being moved over to build better-selling Model Y vehicles, but it, too, has seen a year-over-year decline in sales as reported by the company earlier this month.

Tesla sold only 6,406 units in early 2025, half of the previous quarter's sales. Broader Tesla sales also fell 13% amid increased competition.