Elon Musk’s Tesla woes are continuing to pile up.
Tesla has faced a number of issues since President Donald Trump’s inauguration, including plummeting stock prices, fewer deliveries of its electric vehicles and mass protests against Musk at its dealerships. Many Americans are protesting Musk and his efforts to slash federal government spending as a part of the Department of Government Efficiency.
Now, some Cybertruck owners are reporting that Tesla will not accept its own vehicle as a trade-in, according to electric vehicle website Electrek.
From Electrek’s report:
With Tesla having issues selling new Cybertrucks, the automaker is reportedly not taking any as trade-ins. Many Cybertruck owners reported trying to trade-in the truck for a new vehicle and they were told that the automaker currently doesn’t accept its own vehicle as a trade-in.
Some owners who have had their trucks in service for extended periods of time are also trying to get Tesla to take the truck back, but the company is forcing them to go through the Lemon Law process.
It’s not surprising to see Tesla not wanting to take back used Cybertrucks as their prices are falling fast.
Lemon laws are regulations that protect consumers if they purchase a defective vehicle, or a “lemon.”
Electrek also reported Tuesday that Tesla is sitting on $200 million of Cybertruck inventory that it is struggling to sell. This comes just weeks after Tesla recalled most of its Cybertrucks due to a panel that could come off while the vehicle is in motion.
The news also comes as Tesla said Wednesday that its sales dropped 13% during the first three months of 2025.
The double-digit drop is likely due to a combination of factors, including its aging lineup, competition from rivals and a backlash from Musk’s embrace of right wing politics. It also is a warning that the company’s first-quarter earnings report later this month could disappoint investors.
Tesla reported deliveries of 336,681 globally in the January to March quarter. The figure was down from sales of 387,000 in the same period a year ago. The decline came despite deep discounts, zero financing and other incentives.
Analysts polled by FactSet expected much higher deliveries of 408,000.
The Associated Press contributed to this report.
Our journalism needs your support. Please subscribe today to NJ.com.
