Tesla has announced a new compact version of its controversial Cybertruck, priced at $49,990, amid declining sales and increasing competition in the electric vehicle market. The original Cybertruck has struggled to gain traction, with sales plummeting from approximately 40,000 units last year to just around 10,000 this year, raising concerns over its future viability.

The drastic drop in demand has been attributed to the vehicle’s oversized design and steep price point, which many potential buyers find prohibitive. The base model of the original Cybertruck starts at nearly $70,000, making it inaccessible for a significant portion of the consumer market. In response to these challenges, Tesla has reportedly downsized the Cybertruck, aiming to attract a broader customer base by introducing a more affordable, smaller variant.

Expected to be available as early as next year, this new compact Cybertruck will feature reduced dimensions, aligning more closely with midsize pickups like the Ford Ranger and Toyota Tacoma. It will also modify its design, moving away from the original’s sharp, angular aesthetics to a more streamlined appearance that meets safety regulations in international markets.

Tesla’s vice president of engineering, Lars Moravi, confirmed that the compact version will utilize a smaller battery pack, potentially reducing costs while maintaining a driving range of over 300 miles. The powertrain will likely offer two configurations, with horsepower ranging between 300 to 450, ensuring competitive performance within its class.

However, the compact Cybertruck will come with trade-offs, including lower towing and payload capacities, as well as simplified interior features. These adjustments are seen as necessary to keep the vehicle’s price point competitive and to broaden Tesla’s market appeal, especially in regions where the original Cybertruck’s size has proven problematic.

As Tesla navigates declining sales and increased competition, the introduction of this compact Cybertruck could be a pivotal move in revitalizing interest in its lineup. The industry will be closely watching how this new model performs in a rapidly evolving automotive landscape.