Tesla to deliver Cybertrucks after Musk tempers expectations
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[November 30, 2023] By
Akash Sriram and Hyunjoo Jin
(Reuters) - Tesla is set to start deliveries of its long-delayed
Cybertruck electric pickup on Thursday, after CEO Elon Musk tempered
investor expectations citing problems in ramping production of what he
called a "radical" product.
Cybertruck, Tesla's first new model in nearly four years, is critical to
its reputation as a maker of innovative vehicles. At a time when the
company is battling softening electric vehicle (EV) demand and rising
competition, Cybertruck is also key for generating sales, though not to
the extent of the company's high-volume Models 3 and Y.
"We dug our own grave with Cybertruck," Musk said last month, warning
that it would take a year to 18 months to make the vehicle a significant
cash flow contributor.
Pricing for the vehicle is expected to be revealed at an event scheduled
to begin at 3 p.m. ET (2000 GMT). After saying in 2019 the truck would
be priced at $40,000, Musk has not offered an updated price despite
rising raw material costs.
Ahead of the launch, Musk captured media attention on a different
subject, giving a profanity-laced interview to the New York Times on
Wednesday. He cursed advertisers who had left his social media platform
X, formerly known as Twitter, because of antisemitic comment. He also
said that customers who didn't like him should judge his products by
their quality, including Tesla EVs.
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The billionaire has said Tesla was likely to reach a production rate of
roughly 250,000 Cybertrucks a year in 2025. Tesla has faced "enormous
challenges in reaching volume production" with the Cybertruck because of
its new technology and design, Musk said.
Cybertruck's new body material and unconventional, futuristic styling
add complexity and costs to production, and threatens to alienate
traditional pickup truck buyers who focus on utility, experts say.
During its 2019 reveal, Musk took a sledgehammer to demonstrate the
truck's unbreakable "armor glass" window, only to shatter it.
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Tesla's new Cybertruck is shown on display at a Tesla store in San
Diego, California, U.S., November 20, 2023. REUTERS/Mike Blake/File
Photo
![](http://archives.lincolndailynews.com/2023/Nov/30/images/ads/current/werth_lda_HFH_2023.png)
A few years ago, Musk had floated the idea that if people did not
like the futuristic Cybertruck design, Tesla could "build a normal
looking truck." On recent calls and interviews he has emphasized the
model's innovation.
"The larger problem for the Cybertruck is the Cybertruck wasn't
really designed for pickup truck users," Eric Noble, president of
automotive consulting firm, The CARLAB, said.
"It will have a much narrower appeal than a Ram or an F series," he
said of the popular Dodge and Ford pickups.
Cybertruck, which is two years behind schedule, enters a hot and
highly profitable pickup truck market to compete with the likes of
Ford's F150 Lightning, Rivian Automotive's R1T and General Motors'
Hummer EV.
Rivian's R1T has a starting price of $73,000, while Ford's F-150
Lightning starts at about $50,000.
Seth Goldstein, equity strategist at Morningstar, said he expects
the Cybertruck to be priced between $50,000 to the low-$70,000
range.
Cybertruck has drawn more than a million reservation holders who
have put down $100 as deposits.
"Tesla's products have largely appealed to more affluent early
adopter types. And this is going to be no different," said Paul
Waatti, an analyst at consultatncy AutoPacific.
"It's going to have a smaller audience than the SUVs will have, but
I think it's gonna do surprisingly well."
(Reporting by Akash Sriram in Bengaluru and Hyunjoo Jin in San
Francisco; Editing by Sayantani Ghosh and Bill Berkrot)
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