Reports have emerged that Tesla is facing a significant slump in demand for its Cybertruck, with sales reportedly plummeting 63% in the third quarter of 2025 compared to the previous year. To manage the growing inventory of the electric truck, the company has allegedly been selling hundreds, and possibly thousands, of units to CEO Elon Musk's other ventures, SpaceX and xAI. This move to offload unsold vehicles to sister companies is described by some as a sign of a failing business strategy for the Cybertruck. The news comes as Tesla is already navigating a lukewarm reception to its recently launched, lower-cost versions of the Model 3 and Model Y, which have been criticized for their reduced performance. These challenges around key products surface just days before Tesla's third-quarter earnings call, adding pressure on the company to address concerns about its sales trajectory and demand for its vehicle lineup. The company's global deliveries had already seen a 6% decline over the first three quarters of 2025.