With sharp edges and a boxy stainless steel exterior, the Cybertruck’s eccentric design is polarizing. Social media commenters either hail or hate the vehicle’s distinctive appearance.
But the mixed reactions to the Cybertruck haven’t deterred buyers — it was the third-bestselling electric vehicle (EV) in the third quarter of 2024, outselling every other EV truck, according to Kelley Blue Book (KBB). Reports from buyers, however, indicate Tesla has exhausted its Cybertruck waitlist and sales may soon stall.1
Novelty is one of the Cybertruck’s selling points. But it’s also a hindrance for risk-averse buyers who prefer a tried-and-true truck to an experimental design. The Cybertruck’s innovation hasn’t been without setbacks, with six recalls since its release 12 months ago, including for a faulty rearview camera and a loose applique that detached from the vehicle and increased crash risk.
About 28,250 drivers have bought into the Cybertruck’s unconventional vision, and brand loyalists hail its innovation. But high-tech features might not be enough to win over the average driver. With its polarizing design and a steep starting price of $74,490, the Cybertruck has yet to prove it can move beyond niche appeal.
Key Takeaways
Full-coverage insurance for the Cybertruck costs an average of $3,392 per year — 45% more than the national average of $2,336, according to Insurify data. Insurance for EVs averages $2,892 annually.The Tesla Model 3 is 60% cheaper than the Cybertruck. But insurance for the Cybertruck is 22% cheaper. More expensive cars typically have higher insurance rates.Cybertruck drivers in Insurify’s database are more likely to have excellent credit scores (66%) than the average EV driver (35%).Insurify’s data shows 50% of Cybertruck drivers are in their 40s compared to 14% of Model 3 drivers.California drivers represent 22% of Insurify insurance applications for the Cybertruck, followed by Florida (17%) and Tennessee drivers (13%).
Cybertruck sales account for 3% of reservations
The Cybertruck had a strong third quarter, selling 16,692 units, according to KBB — but it still lags far behind the No. 1 bestselling EV, the Tesla Model Y, which sold 86,801 cars. Reports from Cybertruck reservation holders indicate less than 3% of Tesla’s 1 million confirmed reservations have resulted in sales and the waitlist is exhausted.
The discrepancy between reservations and sales is likely partly price-related. Tesla originally promised the Cybertruck would start at $39,990, but the Foundation series cost $99,990, and the Cyberbeast cost $119,000.2
Price wasn’t the only issue. Foundation series buyers also had to wait nearly a year for the Cybertruck’s Level 3 FSD system. Multiple recalls and quality issues also could have contributed to the belief that the Cybertruck wasn’t worth its hefty price tag.
“It’s like owning a concept car,” said Paul Mata, a Cyberbeast owner and first-time EV buyer. “It’s raw. It’s totally different. There are definitely weird quirks about it. But all of those things combined make it, I think, awesome. Are there things that [Tesla] probably should have put more thought into? Yes, for sure … I don’t want to say it’s half-baked, but there are definitely things that aren’t polished.”
As of November, Tesla is showing signs of demand issues with the Foundation Series Cybertruck. After discontinuing two customization options for the truck, Tesla started promoting its ready-to-deliver inventory.
Currently, the least expensive Cybertruck trim costs $74,490, which is 54% more than the average new vehicle ($48,397) and 32% more than the average EV ($56,351 in September, according to KBB). Despite the truck’s high price, owners still pay less for full-coverage car insurance, on average, than for other Tesla models. But this might have less to do with the Cybertruck’s out-of-the-box design and more to do with its buyers.
Full coverage for the Cybertruck is 22% cheaper than Model 3 insurance
Vehicle value factors into car insurance rates, as it affects the cost of repair or replacement claims. The Cybertruck’s price and multiple recalls influence its higher-than-average premiums, but other factors bring down the average rate. On average, the Cybertruck is cheaper to insure than other Tesla models.
Cybertruck drivers are more likely to have excellent credit (66%) than Tesla Model 3 owners (13%), according to Insurify data. Auto insurance companies don’t directly use credit scores to set rates, but in most states, they create credit-based insurance scores using your credit history. A better credit history correlates to lower premiums.
Middle-aged drivers also pay less for car insurance than younger drivers owing to their longer driving histories. Half of Cybertruck owners are in their 40s, compared to 14% of Model 3 owners, and only 8% of Cybertruck owners are younger than 25, compared to 20% of Model 3 owners.
The Cybertruck’s durability also affects insurance costs. The windows have a class-4 hail rating, according to the manufacturer, and the durable steel body mitigates dents. Warming global temperatures have fueled more destructive storms, and insurers have seen an increase in hail damage claims. The Cybertruck’s design reduces the risk of drivers filing hail claims.
Average Cybertruck insurance rates will likely increase to match more varied risk profiles if the truck achieves mainstream success.
How the Cybertruck compares to the Ford F-150 lightning
Even though the Cybertruck’s drivers have a less risky driver profile, full coverage for the Ford F-150 Lightning is less expensive than for the Cybertruck, at an average of $3,193 per year compared to the Cybertruck’s $3,392.
In the four years between the Cybertruck’s unveiling and first deliveries, Ford increased competition by releasing the F-150 Lightning, an EV version of America’s most popular truck. Ford has sold only 22,807 F-150 Lightning trucks this year compared to the Cybertruck’s 28,250, according to KBB. The F-150 Lightning’s third-quarter sales were 43% lower than the Cybertruck. Ford’s mainstream base may not yet see the appeal of an EV truck, but if Ford can convince its base, it’ll have access to a wider market.
The Cybertruck’s road to mainstream appeal
The Cybertruck’s design and price aren’t the only barriers to attracting average car buyers. Only about 8% of new vehicle sales are electric.3 EVs are common in states like California that have more infrastructure and incentives — but public charging is sparse in some parts of the U.S. The expense of installing a home charger also remains a major barrier to EV adoption.
Tesla, however, doesn’t seem overly concerned about making cars that have mass appeal. Instead, its strategy has shifted toward more unusual vehicles. The EV manufacturer recently unveiled plans for a futuristic Cybercab without a steering wheel or pedals and a Robovan shaped like a high-speed train.
“A Cybercab looks different. A Cybertruck looks different. But Model Y and Model 3 are — look, they’re good-looking cars but look fairly normal,” said Musk in Tesla’s Q3 earnings call.
In the end, the average driver may not be as willing as brand loyalists to overlook the Cybertruck’s faults and recalls. But Tesla might not need the average driver to embrace the Cybertruck to call it a success in today’s market.
Methodology
Insurify’s data science team calculated average insurance costs using 97 million rates from car insurance applications in its proprietary database. Applications span all 50 states and Washington, D.C. Insurify’s real-time quotes are from integrations with partner insurance companies.
Insurance rates represent the average for drivers aged 20–70 with a clean driving record and average or better credit. Insurify examined rates from 20 bestselling electric car models to determine average EV insurance costs.
