Tesla's Costly Surprise: Cybertruck Prices Skyrocket Above Announced Rates
Tesla's groundbreaking, electric pickup, the "Cybertruck," is set to be a whole lot more expensive than originally advertised. After delivering the first units, Tesla announced the base model stainless steel vehicle would come with a hefty price tag of $61,000 USD (approximately €56,000), while the priciest version, nicknamed the "Cyberbeast," will cost a whopping $100,000 USD.
Back in 2019, when the Cybertruck was first unveiled, a production start date of the end of 2021 and a price range between $40,000 and $70,000 were announced. However, a handful of production hiccups led to several delays. Elon Musk, CEO of Tesla, admitted earlier this year that the company had essentially dug their own grave with the Cybertruck due to the unique production processes required for the quirky vehicle.
During a live stream event from Tesla's plant in Austin, Texas, Musk personally handed over several Cybertrucks to their lucky owners. Tesla is diving headfirst into a lucrative market segment in the US, as pickups are among the most popular vehicles, with the Chevrolet Silverado being the top-selling model for the past few years.
But wait, there's more!
Tesla's main competitors, the US car giants, have already launched their electric pickups, but they've been sold in limited quantities. For example, General Motors (GM) only managed to sell 18 Silverado EVs last quarter, while around 143,500 Silverado models with gas and hybrid engines were sold. Ford, on the other hand, sold about 3,700 F-150 Lightning all-electric pickups in October, out of a total of 53,500 F-series trucks sold during the same period.
The major manufacturers attribute the moderate sales figures not only to production issues but also to the current economic climate and people's reluctance to spend big on electric vehicles due to high interest rates.
Tesla's ambitions for the Cybertruck
Tesla aims to manufacture up to 250,000 Cybertrucks a year, but Musk recently stated that reaching this milestone before 2025 is unlikely. Currently, only a small number of Cybertrucks are being produced, while Tesla aims to sell around 1.8 million vehicles in total. Shares of Tesla took a tumble in response, dropping over 3% at the market's opening in the US.
Unmatched style and power
With its out-of-the-ordinary, angular shape, the Cybertruck has received some unfavorable reviews from car design experts. The stainless steel alloy used in the vehicle is extremely hard, limiting its ability to be bent or molded. Musk emphasizes that the distinctive design is all due to this unique alloy, labeling the Cybertruck as something experts said was "impossible" to build.
Despite the controversy, Americans might be open to an electric pickup with an unusual shape or stick to the traditional look. Tesla has highlighted the Cybertruck's impressive electric drive and power, showcasing its ability to outpace even the newest Porsche 911, while hanging an unlucky Porsche on a trailer.
Enhanced durability and capabilities
Competing with both legacy and newcomers in the pickup market, Tesla is keen to demonstrate the strength and durability of its Cybertruck. Tesla's head of design, Franz von Holzhausen, demonstrated the impact resistance of the Cybertruck's windows by having a steel ball bounce off without causing damage, despite the incident four years ago when the windows showed cracks during the unveiling.
Furthermore, Tesla has proven the vehicle's ability to withstand gunfire, having tested the bodywork against bullets from a Thompson submachine gun. However, experts suggested that the vintage Thompson guns would not pose a threat to a more modern weapon.
In Other News
Enrichment Data:
- Current and Projected Production Rates and Sales Figures for Tesla's Cybertruck:
- Current Production Rate: With improvements in production capacity, Tesla is aiming to reach an annual production rate of over 120,000 units by Q4 2024.
- Projected Sales Figures: In 2024, experts estimate 38,965 units will be sold, while Wall Street analysts expect around 48,500 units. For 2025, projections range from 21,000 units (Troy Teslike's estimation) to 65,000 units (Wall Street analysts).
- Impact on Tesla's Stock Price:
- Discounts and Sales Performance: To stimulate sales, Tesla has introduced significant discounts on the Cybertruck, with the latest models starting at $72,890, following customer feedback.
- Market Share and Competition: Tesla's market share in the electric pickup market has declined, from 7.8% in Q1 to 6% in Q3, due to increased competition from traditional automakers and newer players like Rivian and Lucid.
- Stock Price Performance: While analysts remain hopeful about Tesla's prospects, the stock price has been affected by these factors, with more than 22% of analysts rating it as Sell, and the price target lagging behind current market trends.
