Tesla’s highly anticipated Cybertruck is expected to finally make its debut on the market this spring.
But Elon Musk faces the challenge of convincing Wall Street that this futuristic pickup is more than just a gimmick.
Musk recently posted a series of Cybertruck glamor shots on his social media account, hinting that a formal announcement may be imminent. Despite the hype, key details about the Cybertruck, such as its price and final specifications, remain unknown. Concerns among Tesla investors have also risen due to the complex design of the vehicle, which could impact profit margins. This concern was exacerbated by the resignation of Tesla’s CFO, Zachary Kirkhorn, earlier in the month.
Niche vehicle
Needham analyst Chris Pierce suggested that the Cybertruck might ultimately become a niche vehicle, saying, “I don’t see it as a material driver of the stock price.” He also mentioned the minimal chance that it can outweigh investor margin concerns regarding Tesla’s existing vehicles.
Wedbush analyst Dan Ives, a noted Tesla supporter, sees the Cybertruck as somewhere between niche and mainstream within Tesla’s vehicle lineup. However, Ives believes it will be crucial for Tesla’s long-term prospects and to convince Wall Street that its ambitious endeavors are worthwhile.
The Cybertruck was first unveiled in a now-infamous event in 2019 when Musk accidentally shattered a “bulletproof” window. Its release has been delayed multiple times, but the first model recently rolled off the assembly line at Tesla’s Texas Gigafactory.
Unique design
The Cybertruck’s unique design, featuring a stainless-steel exoskeleton, has been compared to various objects, including a refrigerator on wheels, a doorstop, a Lego block, and a cartoon character from “Spongebob Squarepants.”
Even Tesla enthusiasts are growing restless due to the lack of clear information. One Tesla owner recently called on Musk to provide detailed specifications, pricing, and a new estimated delivery date for the Cybertruck. Musk responded by stating that it’s an extremely challenging product to build and that it’s unlike anything else.
Musk also warned about the complexity of the Cybertruck’s manufacturing process, emphasizing the need for precision in designing and building its parts.
The Cybertruck’s stainless-steel exoskeleton presents both a major talking point and a manufacturing challenge. Stainless steel is costly, difficult to shape, and requires specialized welding techniques. Meeting safety regulations in certain regions may also be a challenge.
Tesla has accumulated nearly two million Cybertruck reservations, but these preorders are unlikely to directly translate into sales since customers are only required to submit a $100 deposit.
Wedbush’s Ives anticipates mass production to begin around Halloween, with customer deliveries starting after Thanksgiving. Tesla’s projections indicate shipping approximately 50,000 Cybertrucks in 2023, with production ramping up to 200,000 to 300,000 units by 2024.
As for pricing, Musk initially suggested a starting price of less than $40,000 in 2019, but it’s now expected to begin at around $50,000. The dual-motor version is projected to cost $60,000, while the tri-motor version is expected to be priced at $70,000.
The entry-level price puts the Cybertruck on par with Ford’s F-150 Lightning electric truck, a decision that some find surprising given Musk’s bold claims about the vehicle.
