Tesla’s Cybertruck stands out as one of the most American-made vehicles, boasting that 90% of its components come from the US, Canada, or Mexico. The assembly takes place at Tesla’s vast Gigafactory located in Texas.
Since its launch, the Cybertruck has qualified for the federal made-in-US electric vehicle tax credit. However, due to its initial pricing above the government’s set eligibility limit, first buyers had to purchase it for over $100,000 without receiving any subsidies.
Price Drop and Tax Credit
Recently, Tesla has stopped making the exclusive Foundation Series units and shifted to delivering regular dual- and tri-motor Cybertrucks. This change effectively reduced the price of the Cybertruck by $20,000, allowing the dual-motor version to fall below the $80,000 limit. This change has made it eligible for the $7,500 government EV tax credit, which has been available for Tesla’s other models for some time now.
With the IRS now listing the Cybertruck as a qualifying vehicle for the full government EV tax credit since the start of the year, it has created a dilemma for early buyers. These customers are facing significant losses from their purchases, as the reservation list ballooned to 2.5 million people, leading to a spike in second-hand prices that soared above the manufacturer’s suggested retail price (MSRP) about a year ago. Tesla had previously restricted owners from reselling their vehicles for several quarters but relaxed these rules once production could keep up with demand.
Market Changes and Buyer Struggles
As the initial orders were filled, the reservation list for the high-priced Cybertruck quickly diminished. Those who opted for the more affordable dual-motor Foundation Series, which initially cost over $100,000, are now confronted with a starting price of just $70,500 after accounting for tax and referral credits.
A particular example involves an owner who invested $115,000 into their Cybertruck, including California sales tax, Tesla’s destination fee, and a matte black wrap. This individual now reports having no buyers at an asking price of $89,000.
Comparing Prices and Options
It comes as no surprise that even when adding Full Self-Driving (FSD) and other features that were part of the Foundation Series trim, the total cost for a new all-wheel-drive Cybertruck only reaches $86,000.
It’s worth noting that the Foundation Series trim being sold is not in pristine condition, having only been driven for 2,800 miles. Its value has plummeted by over twenty thousand dollars, especially with rumors of a more economical rear-wheel-drive model set to launch later this year.
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