FYI: The Tesla Cybertruck is facing criticism due to missing features and tariff-related pricing challenges in the automotive industry.
Cybertruck’s Ongoing Challenges
Tesla’s Cybertruck, often touted as a revolutionary design in electric pickup trucks, has encountered several setbacks recently, further dampening its appeal. Despite its futuristic aesthetics and the hype surrounding its release, the Cybertruck’s sales figures have been underwhelming. Adding to its woes, Tesla’s previously announced Range Extender will no longer be available, causing disappointment among potential buyers.
The situation has deteriorated as Tesla confirms that the Cybertruck will lack a basic Autopilot feature that has been standard in every Tesla vehicle sold in the U.S. since 2014. This news has further frustrated users who anticipated a complete array of advanced driving features in a vehicle with such a hefty price tag.
Elimination of Autosteer in Cybertruck
In an unexpected move, Tesla decided to exclude Autosteer from the Cybertruck unless customers opt for the $8,000 Full Self-Driving package. This decision makes the Cybertruck the first Tesla model in almost a decade to ship without this lane-keeping technology as part of its standard Autopilot package.
To appease consumers, Tesla is offering a one-year free trial of the Full Self-Driving service—an offer more motivated by necessity than generosity. This development has sparked discussions about Tesla’s strategic direction and income models going forward.
Despite Tesla’s consistent advertising of Autosteer as part of its Autopilot suite, an update in October 2024 led to its removal as a feature in Cybertruck. This shift raises questions about Tesla’s approach to vehicle features, pricing strategies, and the potential implications for future models.
Tariff Influences on Used Car Prices
The auto industry is grappling with tariff-induced price hikes that are nudging used car prices northward. April saw another increase in the Manheim Index, which measures wholesale used vehicle pricing, indicating dealers are busy accumulating inventory to shield themselves from forthcoming price surges in new cars due to tariffs.
Data from Cox Automotive points to a 2.7% rise in the index year-over-year, with dealers purchasing vehicles aggressively at auctions in anticipation of market disruptions. The hike reflects the broader concerns within the industry over supply chain mechanics and shifting market dynamics due to geopolitics.
Ford’s Response to Tariffs
Ford has officially raised prices on several North American-built models, including the Mustang Mach-E, Maverick, and Bronco Sport, as a countermeasure to the economic strain imposed by tariffs. These increases—up to $2,000 per vehicle—are anticipated to be a permanent adjustment for Ford to align with the added production costs caused by the political climate.
Conclusion
The automotive landscape is rapidly evolving as economic and technological factors reshuffle priorities for manufacturers and consumers alike. Tesla’s moves with the Cybertruck echo larger industry trends where strategic pivots aim to balance technological innovation with financial viability. Meanwhile, mounting tariffs highlight the interconnectedness of global production lines and their impact on pricing strategies across the board.
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William Kouch, Editor of Automotive.fyi
