Tesla Cybertruck sales plunge 48.1% in 2025: What’s driving the slowdown

Sales of Tesla’s highly anticipated Cybertruck dropped sharply in 2025, underscoring mounting challenges for the electric vehicle giant amid shifting policies and changing consumer sentiment.

According to fresh data released by Cox Automotive, Tesla delivered just 20,237 Cybertrucks in 2025, marking a 48.1% decline from the 38,965 units sold in 2024. The steep fall came despite strong early interest in the angular, stainless-steel pickup when deliveries first began.

End of EV tax credit hits demand

Industry analysts point to the removal of the $7,500 federal EV tax credit as a major factor behind the slowdown. The incentive, which had supported demand for the Cybertruck and many competing electric vehicles, was eliminated after President Donald Trump and Congress moved to roll back key clean-energy subsidies.

The impact was felt across the broader EV market. Cox Automotive reported that 1,275,714 electric vehicles were sold in the US in 2025, accounting for nearly 8% of total auto sales, but still reflecting a 2% year-on-year decline from 2024.

While Tesla remained the dominant EV brand in the US, overall momentum slowed. The company sold 589,160 vehicles domestically in 2025, down 7% from 633,762 the previous year.

Sales volatility and political headwinds

Cox Automotive noted a sharp contrast between quarters, with EV sales surging to 365,830 units in Q3 2025 as buyers rushed to secure tax credits before they expired. Sales then fell to 234,171 units in Q4, highlighting how closely demand had been tied to incentives.

In its Q3 2025 investor presentation, Tesla cited “near-term uncertainty from shifting trade, tariff, and fiscal policy” as a key risk to performance.

Analysts have also linked part of Tesla’s sales pressure to public perception of CEO Elon Musk, whose increasingly visible political positions have polarized some consumers. A November 2025 study by Yale researchers estimated Tesla may have lost between 1 million and 1.26 million potential sales globally between October 2022 and April 2025 due to what the report described as a “partisan effect,” with some buyers switching to rival EV and hybrid brands.

Speaking to USA Today, Cox Automotive’s director of industry insights, Stephanie Valdez Streaty, said that politics are “only one piece of a much larger puzzle,” pointing instead to pricing, incentives, and broader market conditions as equally important factors.

A mixed global picture

Despite the Cybertruck’s struggles, Tesla continued to perform strongly in other regions and segments. The automaker led US EV sales in early 2025 and topped luxury vehicle rankings in China, even as global competition intensified and rivals such as BYD gained ground.

For now, the Cybertruck’s sharp sales decline highlights how quickly enthusiasm can cool in a price-sensitive market, particularly when incentives disappear and broader economic and political uncertainties weigh on buyers.