Yahoo Sports Musk Says Tesla "Dug Its Grave" With Cybertruck
Hubris is a dangerous thing. As it did with EV sedans and crossovers, Tesla could've beaten all other comers to the electric-pickup market with the Cybertruck, which was revealed in 2019. Instead, Tesla created something ambitious, and now Ford and Rivian have enjoyed a years-long head start in the EV pickup segment with Chevrolet and Ram joining the party in 2025. In an investor call on Wednesday, Tesla CEO Elon Musk said that Cybertruck deliveries will begin November 30th, but also that the pickup has eaten into its profits significantly.
"We dug our own grave with Cybertruck," Musk said, per Reuters. He urged investors to "temper expectations" with the truck, saying that it still faces a difficult production ramp-up ahead, and thus, a long path to profitability.
Musk said that Tesla has 1 million reservations for the Cybertruck and it has the capacity to build 125,000 a year in 2024, with the possibility to double that in 2025. Whether those reservations turn into demand remains to be seen.
Pricing for the Cybertruck will be confirmed at a November 30th delivery event at Tesla's Texas factory. At the Cybertruck's November 2019 reveal, Elon Musk promised a base price of around $40,000, though that was before the COVID-19 pandemic caused materials and parts shortages, driving up car prices. In recent months, Tesla has also cut vehicle prices significantly to boost sales as the EV segment grows larger and demand wanes.
Ford initially priced the electric F-150 Lightning at under $40,000—and early customers were frequently paying over MSRP—but then had to raise prices dramatically to offset materials cost, before once again cutting prices after demand cratered. All of this is to say, it's hard to guess how the Cybertruck will be priced at launch, and as production ramps up. Especially given that it is a very complicated product.
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