Tesla’s Cybertruck, the all-electric, stainless-steel truck billed as a game-changer, has encountered a series of fire-related incidents in recent months. These events, coupled with recalls and declining sales, are raising questions about the vehicle’s reliability and what it might mean for the broader electric vehicle (EV) market.

Several notable cases have drawn attention. On January 1, 2025, a Cybertruck packed with fireworks and fuel canisters exploded outside the Trump International Hotel in Las Vegas, killing the driver and injuring seven others. Tesla CEO Elon Musk emphasized that the truck’s structure mitigated the blast, directing it upward, but the incident still fueled headlines. In November 2024, a fatal crash in Northern California saw another Cybertruck burn, though investigators found no evidence of a battery malfunction. More recently, fires at Tesla facilities—some suspected as arson—have added to the list of concerns, with authorities still working to determine causes.

The Cybertruck has also faced technical hurdles. Since its launch, Tesla has issued six recalls to address issues like faulty inverters, loose trim panels, and accelerator pedal defects. These setbacks come as the company navigates a tough market. Tesla’s sales have dropped significantly in early 2025—down 76% in Germany and 71% in Australia—amid rising competition from brands like BYD and a U.S. policy shift under the Trump administration, which has reduced EV subsidies. Tesla’s stock has fallen 40% in the past six weeks, reflecting investor unease.

Musk’s high-profile role as head of the Department of Government Efficiency (DOGE), a Trump initiative to cut federal spending, may also be a factor. In recent weeks, Tesla properties have seen vandalism, including fires at service centers and gunfire at a dealership. While investigations continue, no definitive link to his political involvement has been established. Still, the timing has intensified scrutiny on Tesla and Elon Musk.

What doesn’t make sense about the vandalism is that Elon Musk and Tesla already has the money from the cars that are vandalizing. These vehicles are owned by private owners and not the company. Which means the vandals are destroying private property.

These owners will make a claim for damages with their insurance, which will raise not just their premium premiums, but the mass damage will increase the insurance for every car. Much like what we saw with the fires in California and the hurricanes in the southeast. Repairs to damaged vehicles, means the insurance company will get the parts are from Tesla, that makes Elon Musk more money. Talk about being short sighted.

Tesla counters that its vehicles remain safe. Company data shows fires occur every 130 million miles driven, compared to the U.S. average of 18 million miles for gas-powered cars. The Cybertruck’s design, with its exoskeleton and advanced battery system, is meant to set it apart. Yet, any incident involving flames—whether accidental or intentional—risks shaping public perception, especially for a vehicle marketed as rugged and innovative.

The EV market itself is at a pivotal moment. Global adoption is growing as fast as the government had hoped and consumers are choosing hybrids and gas vehicle. The challenges like charging infrastructure and production costs persist which has buyers looking at the options. Tesla, long a leader in the space, now faces stiffer competition and with the mandate disappearing in the U.S.

We discuss the impacts to the industry in the podcast and what consumers should know about.

The government needs to allow consumers choose what they want to drive. And car makers will make what they can sell, not what the government mandates.

Video Link: https://youtu.be/SUzj0E6mqSs

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Lauren Fix, The Car Coach is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.