Tesla Hikes Cybertruck AWD Price $10,000 to $69,990; Citi Warns AI Deflation Risk
Tesla boosted its Cybertruck dual-motor AWD price by $10,000 to $69,990 just days after launching the $59,990 variant, raising cannibalization concerns for its mid-spec model. Citi cautioned that AI-driven deflation represents a greater risk to equity valuations than regional conflicts, potentially weighing on Tesla’s stock.
1. Cybertruck AWD Price Increase
On March 1, Tesla raised the price of its Cybertruck Dual-Motor All-Wheel Drive trim from $59,990 to $69,990 following a limited-time launch. The Premium AWD and Cyberbeast variants remain priced at $79,990 and $99,990 respectively.
2. Demand and Cannibalization Concerns
Strong interest in the $69,990 AWD variant has emerged, but investors caution that the higher price could divert buyers from the Premium AWD model, potentially compressing overall Cybertruck margins and altering sales mix.
3. AI-Driven Deflation Risk
Citi analyst Scott T. flagged that AI-influenced deflation poses a greater long-term risk to equity valuations than oil-price shocks from regional conflicts, suggesting that Tesla’s technology exposure may face pricing and demand headwinds.