It seems that Lucid Group ( LCID 2.34%) management may have been correct all along: Electric pickup trucks are unlikely to become a major success anytime soon.
“Building an electric pickup that works in today’s market is extremely challenging,” former Lucid CEO Peter Rawlinson remarked during the company’s Tech and Manufacturing Day in September 2024. He continued, “at least not one that’s both practical and affordable.”
The unfortunate reality is that most of Lucid’s competitors have attempted this and are largely coming up short.
What have you done for me lately?
Let’s quickly review the situation. Tesla’s ( TSLA -1.57%) Cybertruck, which can reasonably be called a commercial disappointment, has vanished from Tesla’s U.S. order page as the entire electric pickup sector faces difficulties. Tesla rolled out a base version in April at a price about $10,000 less, aiming to boost demand, but this model was stripped of many features that had appealed to its limited fan base.
When CEO Elon Musk first introduced the Cybertruck in 2019, he claimed the entry-level model would cost under $40,000 before delivery, but the actual retail price was closer to $70,000. Musk also projected annual sales between 250,000 and 500,000 units. While Tesla doesn’t break down sales by country or model, U.S. vehicle registration data offers some insight—and the numbers are discouraging. According to S&P Global Mobility, only 15,211 Cybertrucks were registered in the U.S. through July this year, marking a 14% drop from the same period in 2024. Registrations in July alone fell 54% year over year.
Tesla isn’t the only company struggling with electric trucks. Ram, a key Stellantis ( STLA 1.39%) brand, scrapped its plans for a fully electric pickup, citing waning interest in electric vehicles (EVs).
Rivian ( RIVN 0.92%), like Tesla, doesn’t disclose sales by region or model, but U.S. registrations for its R1T dropped 37% year to date through July. July’s registrations were down 40%, totaling just 588 trucks. Ford Motor Company ( F 0.69%) saw a smaller decline with its F-150 Lightning, which posted a 12% decrease in registrations through July and a 15% drop in July alone. Among the major players, General Motors ( GM -0.53%) stood out as the exception: Its Silverado EV, Sierra EV, and Hummer EV all saw registration increases through July.
2026 Hummer EV. Image source: General Motors.
What's the problem?
Even with GM’s relative success, total EV pickup sales didn’t surpass 50,000 units through July—a stark contrast to the hundreds of thousands of gas-powered full-size trucks sold each year. So what’s behind this gap? Why are electric pickups lagging so far behind their gasoline counterparts?
In short, the financial dynamics of electric pickups are the opposite of what’s historically been true. The little-known fact is that manufacturing a full-size gas truck costs only slightly more than making a sedan, yet trucks can command prices two to three times higher. This has resulted in industry-leading profit margins for full-size trucks, fueling Detroit’s earnings for decades.
For electric trucks, however, the battery is usually the most expensive part, which puts a major strain on profit margins. There’s little flexibility, as buyers still expect electric full-size trucks to deliver the same performance and towing capacity as gas models, and are not willing to sacrifice these features for a lower price. With battery packs sometimes costing as much as $50,000, it’s extremely tough to make even a modest profit.
What it all means
Still, there is hope. As battery costs eventually decrease, the market for profitable electric pickups could open up—Ford is already moving in this direction.
Ford has, in fact, reaffirmed its commitment to EVs. The company has reimagined its traditional assembly line, creating an “assembly tree” where three sub-lines build components at the same time before coming together. This new approach is expected to boost production speed by up to 40% compared to current models, and Ford anticipates that its first EV pickup from this line will be profitable early in its production run.
This information is important for investors, as full-size trucks have long been central to investment strategies in the auto sector. However, that perspective needs to shift in the short term, since electric pickups are unlikely to be as profitable for automakers or their shareholders. While Ford’s optimism about future EV pickup profits is encouraging, the margins will likely remain much lower than those of gasoline trucks. For investors, this is the current reality. The transition to all-electric vehicles will be costly, making automakers less attractive investments for now—and the days of high truck profits may be over for good.
