Tesla’s (TSLA) Cybertruck has received mixed reviews.
The electric truck received nearly 2 million preorders ahead of its 2019 launch, but enthusiasm has cooled in some parts of the market, in part due to a higher-than-expected price tag, recalls linked to safety concerns and the design.
“It looks really ugly. Ugly is funny.”
That’s how Shark Tank investor and entrepreneur Kevin O’Leary described the vehicle to Yahoo Finance in May 2023. O’Leary is an investor in the company that provides the technology behind the truck.
As of mid-June, Tesla was producing 1,300 Cybertrucks per week, with a goal of 2,500 per week by the end of 2024. The top-of-the-line Cyberbeast model will cost nearly $100,000, more than the roughly $50,000 investors had expected.
Will the Cybertruck be Tesla’s next big hit, as popular as the Model 3, or will it be a flop for the EV company? Here are some things to consider when evaluating the Cybertruck’s potential impact on Tesla’s financial future.
In this Nov. 21, 2019 file photo, Tesla CEO Elon Musk introduces the Cybertruck at Tesla’s design studio in Hawthorne, Calif. (AP Photo/Ringo H.W. Chiu, File) (The Associated Press)
Bulletproof. Stainless steel. Power steering. These are all unique features of the Cybertruck, the first US vehicle to feature a full steer-by-wire system.
Steer-by-wire differs from typical pickup trucks in that it uses electronics to steer the vehicle instead of a steering rack that connects the wheels to the tires, and is considered a more energy-efficient system.
The car’s bulletproof exoskeleton will appeal to some consumers but not others.
“The Cybertruck is a pretty outlandish vehicle, evoking edgy stainless steel with a Blade Runner-esque, dystopian look,” said Pras Subramanian, senior auto reporter at Yahoo Finance.
The car’s aesthetic may be here to stay: Musk biographer Walter Isaacson has seen preliminary sketches of the highly anticipated (and delayed) robotaxi and said it resembles the Cybertruck.
In terms of demand, the Cybertruck could be a key differentiator in an increasingly competitive EV market.
Tesla’s share of U.S. EV sales fell below 50% for the first time in the second quarter. At the same time, the Cybertruck became the best-selling electric pickup truck in the U.S. in May, according to S&P Global.
Tesla hasn’t disclosed how much it cost to build the Cybertruck, but the vehicle will first be built at the company’s new Texas Gigafactory, which Musk has said represents a $10 billion investment.
And the manufacturing process for this truck is no easy feat: The unique exoskeleton is formed using a technique called “airbending,” which uses high air pressure to shape stainless steel.
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Tesla’s goal is to get the price close to $50,000, but that may be difficult to achieve given manufacturing costs.
The bottom line? Despite the mixed reviews, loyal Tesla fans may continue to support Musk’s product vision — and Tesla’s stock price.
Tesla short sellers have lost more than $60 billion since the company went public, according to Igor Dusaniwsky, managing director at S3 Partners.
After all, company fundamentals like Cybertruck sales numbers don’t necessarily drive Tesla’s stock price.
“This is really less about what Tesla is doing and more about what the market is doing,” Dusaniwski said.
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