Tesla’s Cybertruck, once heralded as a revolutionary addition to the electric vehicle market, faces a steep decline in sales, prompting urgent action from the automaker. With only around 10,000 units sold this year compared to 40,000 last year, the demand appears to be crumbling. The staggering price tag, starting at nearly $70,000, is a primary deterrent, coupled with the vehicle’s controversial design and oversized dimensions that limit its appeal.

In response to these challenges, Tesla has unveiled plans for a new compact version of the Cybertruck, priced at an enticing $49,990. This move aims to capture a broader customer base, particularly those who require a more manageable vehicle size and price. The revised model is expected to be significantly smaller, aligning more closely with popular midsize pickups like the Ford Ranger and Toyota Tacoma. Key specifications suggest a reduction in length from 223 inches to around 210 inches and a weight decrease to approximately 4,500 to 5,000 pounds.

While the compact Cybertruck will sacrifice some features to cut costs, such as a smaller touchscreen and a simplified interior, it promises to retain essential capabilities, including an impressive range of over 300 miles. The battery system will be downsized, moving from a 123 kWh pack to a more economical 75 to 100 kWh, which should help reduce production costs while maintaining competitive performance.

Moreover, this strategic pivot comes as Tesla grapples with heightened competition and declining sales, particularly in key markets outside North America, where the current model’s size poses regulatory challenges. Tesla’s vice president of engineering, Lars Moravi, has confirmed the compact version’s development, emphasizing its potential to revitalize interest in the Cybertruck line.

As Tesla navigates these turbulent waters, the introduction of a more affordable and compact Cybertruck could be a crucial step in reversing the company’s fortunes and expanding its market presence. The urgency of this move cannot be overstated, as the future of the Cybertruck—and potentially Tesla itself—hangs in the balance.