###

Tesla has finally begun accepting trade-ins for its Cybertruck, a year after initiating deliveries of the highly anticipated electric pickup. The decision to start accepting trade-ins comes amid revelations of serious depreciation concerns. When Tesla launched production in late 2023, the vehicle was both pricier and less performant than initially promised, leading to commercial struggles.

Once boasting over 1 million reservations for the Cybertruck, Tesla saw only about 40,000 of those reservations convert into actual orders. A crucial factor behind this was the vehicle's rapid depreciation, which Tesla may have foreseen, resulting in its initial reluctance to accept the Cybertruck as a trade-in.

Currently, Tesla is taking trade-ins for the Foundation Series Cybertruck and providing estimates to owners. A brand-new 2024 Cybertruck AWD Foundation Series, originally sold at $100,000, now fetches a trade-in value of approximately $65,400 after just 6,000 miles—a 34.6% depreciation in a single year. To compare, typical pickup trucks lose about 20% of their value after one year and around 34% within 3-4 years.

It's notable that Tesla’s trade-in estimates often end up being higher than the final offer. Despite trying to mitigate the impact, the depreciation rate remains alarmingly high. As a result, used car dealers also hesitated to purchase Cybertrucks, not wanting unsold inventory sitting on their lots for extended periods.

The vehicle's limited range, issues with the aluminum frame's towing capacity, lack of common truck accessories, and the underperformance of its 'Full Self-Driving' feature further contribute to its impracticality. Reports from Car Guru indicate that the Cybertruck’s real depreciation is closer to 45% after a year, offering a more realistic picture of what owners can expect.

Tesla's challenge is compounded by the lack of scarcity for the Foundation Series Cybertruck. The company produced more units than it could sell, even resorting to modifying some to sell them as standard Cybertrucks. As of the previous month, some Foundation Series trucks remained unsold, pushing Tesla to drastically slow down production rates.

Early Cybertruck owners are rapidly getting rid of their vehicles, leaving Tesla to manage significant inventory and considerable depreciation. This has forced the automaker to crawl back on its production rate, highlighting the wider effects of overestimating demand and the subsequent reality check of market forces.