Will This Go Down as Tesla's Biggest Mistake?

During its very first demo, a metal ball was brazenly tossed against the "armor glass" window of a Tesla (NASDAQ: TSLA) Cybertruck. As we all know now, the demo didn't go according to plan and the shatterproof glass gave way, all but breaking into pieces.

The Cybertruck, intended to be a design that signified Tesla's boldness and futurism (which, in my opinion had already been accomplished when the company drove a radical change in a previously stale electric vehicle industry) is closer to being the butt of jokes and a total commercial flop.

Here's a look at just how poorly the Cybertruck has been received, why electric trucks in general face an uphill battle in the near term, and where Tesla goes from here.

Only a mother could love that design

Tesla's polarizing Cybertruck is a departure from traditional truck aesthetics. The Cybertruck has an interesting design, divisive at best and hideous at worst, and its identity could be just as wide-ranging. Is it a truck that doesn't tow well? Is it an SUV, or something in between? Is it bold or is it just plain silly?

On paper, it's a full-size pickup truck, but it rivals the Chevrolet SSR in confusing looks, and the SSR was part truck, part convertible, and part wannabe hot-rod. The Cybertruck makes Pontiac's Aztek look reasonable, and those two examples are a couple of the biggest automotive flops in history. Should we call it Elon's Edsel?

Tesla reported record deliveries during the third quarter of 2025, in part thanks to flocks of consumers hitting the market ahead of the $7,500 federal EV tax credit's disappearing act at the end of September. In fact, that boost in demand fueled the EV industry to its strongest quarterly result ever, with sales up nearly 30%.

But one of Tesla's most-hyped products, the Cybertruck, sold only 5,385 vehicles during the third quarter, which was a substantial 62.6% drop from the prior year. That sales figure is a drop in the bucket compared to the 250,000 units annually that the company once predicted, or even the 120,000 units annually it was later amended to.

What caused the flop?

The hype from once touting over 1 million reservations has all but faded thanks to production delays, quality issues, and a higher-than-expected price tag. Remember that Tesla initially promised three affordable trims starting at just under $40,000.

That price point was closer to a dream than reality, and the latter brought forth a long-awaited entry-level Cybertruck model that checked in at $69,990 not including additional fees. To make matters worse, that bargain-oriented Cybertruck lived less than half a year before Tesla removed it from the market, leaving the $79,990 all-wheel drive (AWD) option as the cheapest variant currently.

It doesn't help matters that competition caught up, and consumers browsing the segment can find a compelling Chevrolet Silverado EV or Ford Motor Company's F-150 Lightning for about $53,000 and $55,000, respectively.

It also doesn't help that the economics for an electric truck are flipped from traditional gasoline-powered trucks, which generate much larger margins than sedans. An electric truck, however, is still seen as a work tool that requires a larger and more expensive battery for performance, and the battery remains the largest cost in an EV. Those economics make it difficult to produce a compelling electric truck that's both capable and cost-effective.

The road ahead

There's really no sugar coating it, the Cybertruck was a complete and utter failure on many levels -- sales, performance, reception, design, practicality, price, you name it. For investors, it's supremely disappointing but not a deal breaker by any stretch, and it's easy to imagine a path forward when Tesla's best days remain ahead of it.

But it brings up a larger point. Tesla might not currently be in the business of fixing its vehicle lineup, as some investors might hope. The company has made it pretty clear its focus isn't on the next traditional vehicle platform, but rather its robotaxi Cybercab. Further, it seems more apparent with each passing day that Tesla sees itself becoming a business focused on robotaxis, artificial intelligence, driverless vehicles, and robotics than it does solidifying itself as a premium automaker.

There's nothing wrong with that. If Tesla can pioneer those businesses as it initially powered the EV industry, investors will be well-rewarded. But the Cybertruck, its downfall, and lack of a remedy brings us to the current fork in the road: Are we investing in an automaker or a Texas-based tech company? Either way, it's probably time for investors to dust off their Tesla investing thesis and make sure their interests are still aligned before driving down a more uncertain future.

Daniel Miller has positions in Ford Motor Company. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.