Tesla's Cybertruck arrives with a steeper price tag and myriad obstacles
Tesla's highly anticipated Cybertruck finally hits the market under the watchful eye of CEO Elon Musk Despite the lack of new details, the launch unveils a surprising price update on Tesla's website Discover the challenges faced by this groundbreaking electric truck as it strives to outshine its competitors
Elon Musk, the CEO of Tesla, oversaw the long-awaited delivery of the company's Cybertruck, four years after its initial unveiling. However, despite the flashy presentation and new price on Teslas website, the event failed to provide much new information. Even the ability to place a $250 deposit for an order did not include traditional car buying experiences, such as choosing options. Practical details, like front trunk space and range estimates, were also notably absent from the presentation.
The website did announce that the top-tier model would be named the "Cyberbeast." Priced at $60,990 before federal tax credits, the Tesla Cybertruck comes in at over $20,000 more than the originally discussed base model from its debut in 2019. Initially projected to cost less than $40,000, the company had to adjust its pricing due to the pandemic and subsequent high inflation.
And even then, it would only be "available in 2025," the Tesla website said.
If you want one in 2024, be prepared to pony up nearly $80,000.
The Cybertruck is facing tough competition in the electric vehicle market in terms of cost. Not only are there numerous pickups, but also SUVs in the same price range. Many electric vehicles, especially in the luxury market, are experiencing declining sales due to the influx of electric vehicles in that price range as automakers ramp up their electric manufacturing operations.
Additionally, the Cybertruck's "sports-car like" performance was highlighted, with a video showing it towing a Porsche 911 on a trailer while racing another Porsche 911 down a drag strip. However, it's important to note that Porsche 911 sports cars are not known for raw acceleration, and pickup trucks are also not typically chosen for this feature. Therefore, it remains to be seen how much of a selling point this will be for the Cybertruck.
The acceleration figure on Tesla's website is only provided for the nearly $100,000 Cyberbeast version of the truck. The 11,000 pound towing capacity is only available in the all-wheel-drive versions, which cost $80,000 or $100,000. "The price range of the truck may not be a significant issue compared to high-end trucks already on the market," stated Brian Moody, executive editor at Kelley Blue Book. He also noted that Tesla's pricing options are limited.
"Tesla's limited truck offerings with only minor modifications have put them at a disadvantage, lacking both a low-priced option and a heavy-duty, super-capable option," explained Moody via email.
According to Wedbush Securities analyst Dan Ives, Tesla has approximately 2 million reservations for the Cybertruck, with a projected 30% to 40% conversion rate to sales. The company's ability to ramp up production of the truck, compounded by competition from Ford, GM, and Rivian in the electric pickup market, poses a significant challenge. CEO Elon Musk has acknowledged the production issues.
"It's a daunting challenge to increase production, but Tesla has faced similar situations before," he stated, alluding to previous product launches such as the Model 3 sedan. However, he warned, "the market they are entering now is much more intricate to navigate."
Resembling a distant cousin of a luxury kitchen appliance, the Cybertruck bore no resemblance to any other vehicle on the road when it made its debut in 2019, and it still doesn't. The unique, angular all-metal aesthetic was intentionally attention-grabbing: Musk aimed to make a statement with something that diverged from the typical large truck design.
Behind the competition
Despite the Cybertruck's capabilities, including power and range, failing to make a significant impression. The market has undergone changes over the last four years due to Tesla's development and delays. This means that beneath its sleek exterior, Tesla's new high-tech pickup is now much more commonplace even before the first one is delivered to a customer's home.
Electric motors offer substantial towing and hauling power, and the spacious design of a truck allows for multiple batteries and extended range. Tesla isn't the sole automaker to recognize this potential.
In the past four years, Ford introduced the F-150 Lightning electric pickup truck, Rivian R1T pickups have become a frequent sight on American roads, and General Motors has initiated production of the Chevrolet Silverado EV electric pickup. Additionally, Stellantis's Ram 1500 Rev electric truck is scheduled for production in late 2024.
Difficult to produce
The landscape has changed since then, and the Cybertruck's features no longer appear as extraordinary as they did four years ago. Some of the competing trucks have similar or even superior capabilities compared to Teslas.
Musk has frequently discussed the challenges of manufacturing the Cybertruck due to its unconventional design. The vehicle's use of unpainted stainless steel, a material uncommon in the automotive industry, poses difficulties in both production and repair. This is because the high durability of stainless steel makes it challenging to work with, and traditional stamping machines used in auto factories struggle to bend such strong metal efficiently.
The Cybertruck presents significant challenges for achieving volume production and generating positive cash flow, as Musk noted in a recent investor call. This is due to its unibody design, which differs from the typical body-on-frame construction used for heavy duty trucks.
Slight advantages are fading fast
The Cybertruck could potentially benefit from its compact size. According to Tesla, the Cybertruck measures at less than 19 feet long, making it slightly shorter than other full-size trucks. Additionally, Tesla asserts that its cargo bed, at over six feet long, exceeds the average length for trucks in its class.
The Cybertruck's shorter body length may result in a sacrifice of front storage space, as it lacks the long hood found in other pickup trucks, including those from Ford and GM. This could mean that the Tesla has less "frunk" space, which has been a significant selling point for the Ford truck. Additionally, the wedge shape of the Cybertruck could hinder access to the bed from the sides, as pickup users often reach in over the sides to load and unload items close behind the cab.
The payload capacity of the Cybertruck exceeds that of competitors currently in production. The Ford F-150 Lightning can carry up to 2,200 pounds, while the Ram 1500 Rev can carry up to 2,700 pounds, surpassing the Cybertruck. This report includes contributions from CNN's Chris Isidore.
