In what is arguably one of the most dramatic turnarounds in recent automotive history, Elon Musk and his company Tesla are scrambling. Once lauded as pioneers of electric vehicles, the company’s flagship new model, the Tesla Cybertruck, is public‑facing catastrophe. With sales collapsing, quality scandals mounting and a revealing fix‑it‑from‑within scheme laid bare, Musk’s panicked gambits are now exposed in full.

Here’s an in‑depth look at what’s going on: what happened, why it matters, and how Musk appears to be trying to paper over deep issues.

The Hype vs. The Reality

When Tesla first unveiled the Cybertruck back in 2019, Musk promised the moon. He tweeted that Tesla had already reached250,000 “orders” for the pickup. The vision: a revolutionary stainless‑steel electric truck that would dominate the market.

Nearly six years later, the reality is drastically different:

Despite Musk’s claim of 250,000 orders, sales are far short of that. In fact, observers estimate only ≈5,000 units sold in Q2 2025.

Q3 2025 data show a whopping 63% drop year‑on‑year, with only 5,385 Cybertrucks sold.

Total 2025 estimated sales for the model are around 16,000–20,000 units—an order of magnitude below earlier targets.

Tesla’s Texas Gigafactory, built for massive Cybertruck volume, now reportedly runs at under 10% capacity for that model.

In short: the grand promise collapsed into a near‑embarrassment.

What’s Driving the Collapse?

Several interlocking factors have created this perfect storm.

Quality & reliability issuesThe Cybertruck was marketed as rugged, futuristic, near‑indestructible. But the reality has been very different. Tesla had to issue a recall of ~46,000 Cybertrucks over exterior trim panels that could detach at road speed. One analysis cited “eight recalls” of the model in its first production year.Such issues hurt credibility and erode the “Tesla magic” brand.

Pricing mis‑match and competing markets
The starting price of the Cybertruck ended up far higher than many expected—initially touted at around $39,900, but real pricing was much steeper. Meanwhile, more affordable electric trucks from legacy automakers began gaining traction. The unique design of the Cybertruck also alienated many traditional truck buyers.

Inventory build‑up and mis‑allocationReports suggest unsold Cybertrucks are accumulating—some parked in abandoned malls—while Tesla has begun using internal channels (including Musk’s own other companies) to off‑load them.

Brand and leadership turmoilMusk’s public profile—political comments, social media storms—has begun dovetailing with Tesla’s brand problems. Some customers appear to be distancing themselves from the brand.

Demand failureThe larger EV market is booming, yet the Cybertruck is under‐performing. That gap between market growth and the model’s collapse sharpens the embarrassment.

The “Scheme” Exposed: Tesla’s Internal Fire‑Drill

One of the most troubling revelations: the way Tesla appears to be managing the problem internally—rather than just through normal market mechanisms.

Tesla has begun selling unsold Cybertrucks to Musk’s own private companies—including SpaceX and xAI—so that the inventory doesn’t sit visibly unsold in public lots.

The scheme suggests a deliberate attempt to inflate or smooth production/delivery figures: rather than outright admit product failure, Tesla is shifting units in‑house. This raises questions about what truly counts as a “sale” and how transparent Tesla’s numbers really are.

Musk apparently admitted that they “dug a hole” with the Cybertruck.

In effect, what was pitched as a bold innovation is being quietly managed as a crisis—an internal “scheme” to contain reputational damage and salvage assets.

What Musk and Tesla Are Doing to Stem the Bleeding

Facing mounting pressure, Tesla has adopted several reactive and forward‑looking steps:

Price cuts and incentives: Tesla offered free Supercharging for certain Cybertruck models.

0% financing offers: In some markets, Cybertruck buyers could get zero‑interest loans.

Internal fleet absorption: As noted, the corporate entities run by Musk are absorbing unsold vehicles.

Public acknowledgement of error: Musk admitted the company had “self‑dug” a hole with the Cybertruck project.

Quality investigations: Tesla publicly announced that they were investigating the panel/glue issue and halted further deliveries temporarily in some cases.

While these steps show acknowledgement of the problems, critics say they are too little, too late.

The Big Questions Still Hanging

How many of the internal transfers (Cybertrucks moved into Musk‑affiliated fleets) are counted as official sales? If they are, Tesla’s real retail demand may be even lower than publicly stated.

Will Tesla be open about the financial losses tied to the Cybertruck program? The project was envisioned for large scale; current output is tiny by comparison.

What does this mean for Tesla’s production capacity and capital expenditure? Building a factory for hundreds of thousands of units while selling only tens of thousands poses severe financial risk.

How will this affect Tesla’s brand value long‑term? A dramatic collapse of a flagship model may undermine customer trust across the portfolio.

What changes in leadership or governance might result? Tesla’s board and Musk’s oversight may come under heightened scrutiny if this turns into a major corporate debacle.

Why This Matters Far Beyond Tesla

This story isn’t just about one model or company. It has broader implications:

For the EV industry: Tesla has often been seen as the trail‑blazer. Its stumble opens more space for competitors.

For corporate accountability: Inflated projections, internal “fixes” disguised as normal operations, and a public face of success with internal turmoil raise questions about transparency.

For investors and markets: Tesla’s valuation and investor confidence are under threat. A failure of this magnitude could ripple into broader tech/auto sectors.

For consumers: Early adopters of the Cybertruck may face quality and resale issues. What happens when hype meets reality?

For innovation narratives: The idea that bold designs plus hype equal success is being challenged. Execution, market fit and timing matter more than ever.

Final Thoughts

Elon Musk bet big with the Cybertruck. He made bold promises. He stoked hype. He rallied his base. But now the sales data, quality issues and inventory gluts reveal the other side: a bold innovation turned high‑stakes gamble that may have back‑fired.

Rather than ride the wave, Tesla finds itself chasing the tide. Musk appears to be in full panic: approving incentives, shifting inventory to internal fleets, publicly acknowledging the mis‑step. The “scheme” of internal absorption of unsold trucks is particularly worrying—it suggests that what the outside world sees is not necessarily the full picture.

The real question: can Tesla recover from this? Can Elon Musk pivot the narrative before the damage irreversibly hurts brand, finances and trust? Or will the Cybertruck become the case study of how hype outpaces product, and how even giants can mis‑read the market?

At this juncture, the eyes of the industry, investors and consumers are firmly fixed on Tesla. Musk’s next moves will tell us whether this is a temporary detour—or the beginning of a far larger reckoning.