Tesla's Cybertruck Will Finally Be Delivered Thursday, What Should Investors Know?
The Cybertruck, known for its unique and futuristic design as well as the infamous shattered window incident, is set to begin production in 2023. Its launch may have a significant impact on the market due to its distinctive appearance and advanced technology features. The delivery event of the Cybertruck will be held at Tesla's Texas Gigafactory on November 30th, which has been delayed multiple times due to production challenges.
Details Revealed in Q3 Earnings Call
Elon Musk expects to produce around 250,000 Cybertrucks per year, but believes that this target will not be achieved until 2025, and the ramp-up period will be challenging due to the innovative and unique nature of the vehicle. He also wants to "temper expectations" for the Cybertruck, stating that it may take up to 18 months before it contributes significantly to cash flow, due to difficulties in scaling production and pricing the EV affordably.
We dug our own grave with Cybertruck," Elon Musk said on Tesla's third-quarter earnings call. "It will be cool, but it's utilitarian,"
Elon Musk expects a strong demand of Cybertruck and believes it is one of Tesla's best products. The CEO says more than a million people plunked down $100 to reserve a place in line to buy a Cybertruck, and that should be plenty to sustain several years of sales.
How Much Cybertruck Will Cost
The price of the Cybertruck remains unclear even though Tesla had initially stated that it would cost $40,000. According to Bloomberg, with battery prices down by 12% and Tesla's long-range Model 3 sedan price dropping by 5% since the 2019 unveiling, the Cybertruck's price could fall above or below the $60,000 mark. Following $Ford Motor(F.US)$'s pricing of its electric F-150 Lightning at $49,995 in July, Elon Musk commented that it was "a good vehicle, just somewhat expensive."
Additionally, a now-deleted contract clause aimed at preventing early customers from reselling their trucks hints that the truck may not be cheap — or plentiful — when it is finally released.
Consumers' Concerns About Cybertruck
• Battery Range: For truck owners, maintaining the rated range can be challenging, especially while hauling heavy loads at highway speeds. Larger vehicles also require more time to charge, making it a crucial factor to consider.
During the 2019 unveiling, three versions of the Cybertruck were promised by Tesla. The high-end version featured a tri-motor with more than 500 miles of range at $69,900. A base rear-wheel-drive model was also disclosed, which is priced at $39,900 and has a range of 250 miles. However, this variant may not be available at launch or ever. Two- and three-motor variants have been registered by Tesla, but only for 2024 vehicle identification numbers. The dual-motor version is referred to as the Standard, while the tri-motor is known as the Performance model in government filings. A 300-mile range no longer seems as impressive after $General Motors(GM.US)$ debuted a Chevrolet Silverado EV work truck that's able to go 450 miles per charge.
• Stainless Steel Body Issues: The stainless steel body of the Cybertruck has posed a challenging task for achieving the required level of fit and finish, with gaps or alignment issues arising during panel shaping, according to sources who have worked on the vehicle, as reported by The Wall Street Journal on Monday.
Howeever, auto expert Sandy Munro says that it's unfair to judge the vehicle based off of images of early Cybertruck prototypes.
Munro has also pointed out that the thick stainless steel body has several perks for owners.
The thing about stainless steel is it hangs around a while," he said. "Now if I want to polish that car, I can make it so that it shines like the sun for a while. I can buff the daylights out of it without having to worry about a new paint job. If I get a scratch, I can get that scratch out no question."
• The Lack of Options: Tesla's manufacturing strategy is streamlined, with just four models - the 3, Y, S, and X - and limited options for customization. This approach may prove challenging for trucks, as the diverse needs of customers such as construction workers, suburban families, ranchers, and outdoor enthusiasts cannot be met by a one-size-fits-most product.
Unlike Tesla, most truck brands offer a wide variety of choices ranging from work trucks starting at $40,000 to six-figure rigs with luxurious cabins that have features like back massagers and quilted leather seats.
Source: Bloomberg, InsideEVs, Business Insider
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