Cybertruck Owners Abandoned as Tesla Cuts Production, Insurers Flee

As of August 18th, 2025, Tesla's Cybertruck is facing a significant challenge as the company's reduced production of the electric vehicle has led to insurance firms canceling policies for owners.

Once one of the most highly anticipated vehicles, the Cybertruck's sales and production numbers have plummeted in recent months. In the second quarter of 2025, Tesla sold just 4,306 Cybertrucks, a drop of more than 50% compared to the same period the previous year.

This sharp decline in production has had a ripple effect, with some insurance companies now using the low sales figures as justification to cancel their coverage of the Cybertruck. One Illinois resident reported receiving a letter from Hanover Insurance stating that the company is "unable to adequately rate and underwrite the vehicle" due to its limited production and the "unique challenge" posed by its design.

The only way for the owner to avoid having his Cybertruck removed from the policy was to remove the vehicle entirely, despite having "zero accidents" in his driving history.

This development is the latest in a series of troubling news surrounding the Cybertruck and Tesla's overall sales performance this year. The company's second-quarter numbers show that Cybertruck sales were not only beaten by the Ford F-150 Lightning but also by the Hummer EV, casting further doubt on the vehicle's future.

As the leading electric vehicle manufacturer, any setbacks for Tesla could potentially slow the broader adoption of EVs, keeping more high-polluting, gas-guzzling cars on the road.