At a launch event in Austin, Tesla CEO Elon Musk began delivering the futuristic vehicles to the first of thousands of buyers who have patiently waited through years of delays. Driving himself into a darkened auditorium full of fans, Musk emerged from the truck, climbed onto its bed and declared the truck “the most unique thing on the road.”
“Finally, the future will look like the future,” he said.
His presentation was full of stunts — such as a video of a gunman shooting bullets at the truck’s door, to show how tough it was — but short on details about how quickly Tesla will be able to deliver the vehicles off the assembly line. The company updated its website Thursday to unveil the truck’s price: $61,000 to $100,000, depending on the model. It expects to ramp up deliveries in 2024 and 2025.
The long-awaited launch caps years of false starts. The Cybertruck had an inauspicious debut in a 2019 product demonstration, when Musk invited a customer to test the “unbreakable” glass by hurling a bowling ball at it, only to mutter a curse as the window shattered.
In the four years since, the vehicle has seen repeated delays due to various supply chain pressures. Competition has also heated up, with Ford and Rivian beating Tesla to market with electric pickups of their own.
Early reactions at a Tesla showroom in Bethesda, Md., on Thursday suggest that the truck, like its inventor, is not for everyone.
“Singularly ugly … sinister!” pronounced Nancy Koran, a retiree and resident of Bethesda whose husband dragged her to the showroom to check out the truck.
“Breathtaking,” declared Nik Simic, a Tesla superfan in a Cybertruck t-shirt. “The pictures don’t do it justice.”
Simic, a swimming-pool designer who already owns a Tesla Model X Plaid, was so eager to view the truck that he made a diversion to the mall showroom as he was traveling home to North Carolina after attending a Kiss concert in Baltimore. He preordered a Cybertruck 18 months ago.
The Cybertruck’s unique, angular frame sets it apart from legacy carmakers’ offerings such as the electric Ford F-150 and Chevrolet Silverado models that closely resemble their gas-powered predecessors. Tesla describes the Cybertruck’s stainless steel body as a “nearly impenetrable” exoskeleton that should help resist dents, damage and long-term corrosion.
How soon will the company manage to deliver the vehicle to the thousands of fans who have placed orders and patiently waited for years? Musk did not say on Thursday.
The same factors that make the truck unique — the spiky design and massive steel frame — could also contribute to production issues, analysts say.
The company has none of the business advantages that come with building on a preexisting manufacturing template like Ford’s F-series. The parts that go into a Cybertruck generally can’t be spread across the company’s other offerings, making it more expensive to produce. And Musk has already admitted that ramping up to meet demand will be challenging.
“I just want to temper expectations for Cybertruck,” Musk said in an Oct. 2 call with investors. “It’s a great product, but financially it will take a year or 18 months before it is a significant positive cash flow contributor.”
Tesla is taking reservations on its website, requiring a refundable deposit of $250. The company has notched more than 1 million reservations this way, Musk said in a recent call with investors.
Wedbush analyst Dan Ives estimated that the number of reservations is probably closer to 2 million, but he expects only 40 to 50 percent of those consumers to follow through on their purchase.
The truck’s pricing has risen since Tesla announced the vehicle in 2019. Back then, the lower-tier, single-motor version was just shy of $40,000, with the most expensive selling around $70,000. But the industry has experienced significant inflation in its component prices since then.
Brian Salcetti, a finance professional who stopped by the Bethesda showroom, predicted demand will be strong. “Elon Musk has a cult following,” he said. “I think everything he makes, people will buy up.”
Still, he wondered how people will maneuver the hulking vehicle through everyday life.
“I just don’t know how people can drive this,” he said. “You can’t fit it in a parking space.”
This is a developing story. It will be updated.
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1: https://www.washingtonpost.com/technology/2023/11/30/cybertruck-demand-price-elon-musk-tesla/
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