Tesla's Cybertruck Stumbles in High-Priced Market of Electric Vehicles
At the grand unveiling, typical Musk-style spectacle featured scorching predictions about "the future" and an icy truck cruising on a trailer - yet the presentation yielded little new information. Tech options selection wasn't included in the preorders, and Titanic-sized modifications like cargo space or extra capability beyond 250-mile range remain unmentioned.
The website did reveal the top-tier model name, "Cyberbeast," and the base model starts at $60,990 (pre-tax rebates), which is $20,000 more than the $40,000 initially advertised in 2019. The pandemic and its high inflation, compounded by Tesla's debt, led to breaking the original promise. The truck won't be available until 2025; customers eager for 2024 purchases will invest nearly $80,000.
In a field already packed with pricey electric vehicles, the high price tag sets the Cybertruck back. Not only pickups but luxury SUVs need watch their backs as well. The overpricing of certain electric vehicles, especially in the luxury segment, has muted sales as automakers oversaturate the market.
The marketing gimmick of this "sportscar-like" performance highlights a video showcasing a Cybertruck towing a Porsche 911 while racing it on a drag track. Fair warning, however, the Porsche 911 was never intended as performance-based marketing material - nor is it an SUV. So, the effectiveness of this marketing strategy is uncertain.
The Tesla website lists acceleration numbers only for the high-end Cyberbeast version priced at nearly $100,000. The trailer capacity, available only in pricier all-wheel drive configurations, is also mentioned.
Brian Moody, editor-in-chief of Kelley Blue Book, shared his assessment by stating, "The price range for the Cybertruck compared to existing high-end trucks is not necessarily a significant issue for Tesla. Tesla is limited by the market price it can offer."
When it comes to online preorders, Cybertruck enthusiasts are estimated to be around 2 million, as reported by Wedbush Securities analyst Dan Ives. Only 30 to 40 percent of these orders are expected to culminate in sales, according to Ives. However, the real challenge for Tesla could be production issues, as production ramps up to 250,000 units per year, especially when compared to competition from Ford, General Motors, and Rivian.
"It will be a significant challenge to scale Cybertruck production and flip the cashflow positively", Musk stated during an investor's meeting, referring to earlier introductions like the Model 3. However, he cautioned, "It's a complex market for us."
Trading Beauty for Function
At first glance, the Cybertruck might suggest its futuristic, industrial look is a nod to its functionality. However, the features of the Cybertruck - like its power and range - are not particularly groundbreaking. The electric vehicle market has evolved substantially since the Cybertruck's debut four years ago.
In 2019, the Cybertruck's outlandish design and glass-control manifesto stood out. Today, its website was launched with a slicker, less eccentric, and less brash appearance.
Behind the Competition
Electric motors boast powerful traction and hauling potential, providing the real estate for large batteries and seamless cruising. Many automakers recognize this potential, and it's no surprise that Tesla isn't the only player in the game:
- Ford started selling the electric version of F-150 Lightning almost four years after the Cybertruck debut.
- Rivian R1T showcases American roads everywhere, and General Motors even started Chevrolet Silverado EV production recently.
- The Ram 1500 Rev from Stellantis is set to hit showrooms by the end of 2024.
So the competition has only ramped up since the inception of the Cybertruck. With so many players vying for a slice of the market, the Cybertruck's features no longer seem particularly impressive or unique.
Manufacturing Nightmares
Musk has openly discussed the construction challenges facing the Cybertruck due to its unusual, cold-rolled steel skin. While the claimed longevity of the material helps avoid construction and repair difficulties, the design makes construction and repair more complicated.
The gigantic stamped presses commonly found in automobile manufacturing facilities have a hard time handling heavy metals like cold-rolled steel. Cybertruck's unibody design (meaning it doesn't include a separate frame or chassis) is also difficult to construct.
Unibody construction is typical for crossover SUVs and smaller light-duty pickups, but conventional pickups employ a body-on-frame design for stability and flexibility when hauling heavy loads.
"It will be a tough challenge to bring Cybertruck to mass production and turn its cash flow positive", Musk shared during a recent meeting.
The Fickle Consumer
One of the strengths of the Cybertruck is its compact size. Tesla claims the Cybertruck is less than 19 feet long, while the average full-size truck measures over 20 feet. But this compactness may take a toll on its cargo area, especially since the Cybertruck has a sloping hood and less storage space than other pickups.
Further, the angular design of the Cybertruck could make it more challenging to access the cargo area from the side. Users of pickup trucks commonly load and unload from the side, which the Cybertruck's design may complicate.
Nutzeffektivität des Ladesystems
The Cybertruck's maximum payload capacity of 3,500 kg is higher than most competitors, such as the Ford F-150 Lightning, which can only carry 2,200 kg. However, the Ram 1500 Rev outperforms the Cybertruck, with a maximum payload capacity of 3,040 kg.
A quirk in the Cybertruck's design means it has more cargo area than your average full-size truck – 2.4 meters long to be precise. However, if the vehicle's minimal length affects the front storage area, this could be a drawback.
Its unconventional shape may make it challenging to access from the sides, and finding loading space from those angles may not always be straightforward.
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