Approximately four years after the initial unveiling of the Tesla Cybertruck, the electric vehicle manufacturer has confirmed its plans to commence deliveries of the first batch of these massive pickup trucks to customers on November 30. However, Tesla CEO Elon Musk cautioned investors on a conference call about the company’s third-quarter earnings that they should not expect high production volumes, low prices, or profits anytime soon.
Musk expressed his admiration for the Cybertruck, having driven it personally, but he emphasized that there will be significant challenges in achieving mass production and making the Cybertruck financially viable. The Texas manufacturing plant has the capacity to produce 125,000 trucks annually, and while 1 million people have reservations for the vehicle, Tesla does not intend to rapidly increase production due to the significant challenges in manufacturing the unique and “radical” design, particularly the stainless steel construction and flat expanses of bodywork that require precise fit and finish.
Musk referred to the Cybertruck as Tesla’s best product ever but emphasised its technical complexity, which makes manufacturing difficult. Making a profit on the vehicle is also a major challenge, especially considering the current uncertainty in vehicle pricing due to higher interest rates. While the initial starting price was announced as $40,000 (RM190,800), this figure was revised in 2022.
The CEO anticipates that Tesla will eventually produce 250,000 Cybertrucks annually, but he does not expect to reach this production rate until at least 2025. Until that point, the project may continue to be costly as work on prototypes progresses.
Musk concluded by tempering expectations for the Cybertruck and reflecting on the unique challenges and innovations associated with the truck. “We dug our own grave with Cybertruck,” Musk told investors, calling it the type of special product with lots of bells and whistles that only comes along once in a while.
