Tesla Unveils First Cybertruck, Production Delays Still Linger
Image Credits: Tesla
Tesla has announced the completion of its highly anticipated Cybertruck, marking a significant milestone for the electric vehicle manufacturer. The futuristic-looking pickup truck has faced numerous delays in production and is finally ready just ahead of Tesla’s second-quarter 2023 earnings call.
Initially introduced by Tesla CEO Elon Musk in 2019, the Cybertruck has suffered multiple setbacks in production and delivery. The company had initially planned to start production and delivery in 2021 but faced sourcing component shortages, leading to repeated delays.
In July 2022, Musk set a new production schedule for summer 2023, and during Tesla’s first-quarter 2023 earnings call, he promised to hold a delivery event for the Cybertruck in the third quarter of this year. Musk has also stated that once production begins, Tesla could deliver between 250,000 to 500,000 units per year, with mass production set for the end of 2023.
Investors and analysts are eagerly awaiting Tesla’s second-quarter earnings call for more specific information regarding production, delivery, and specifications of the Cybertruck.
While Tesla has attributed the delays to standard supply chain issues, leaked documents have revealed deeper flaws in the vehicle’s design and engineering. In January 2022, a whistleblower leaked files showing serious problems with preproduction prototypes, including braking, powertrain, suspension, sealing, and structural issues. These revelations raised concerns among stakeholders and reminded many of the infamous incident during the first Cybertruck reveal event, where the vehicle’s designer accidentally cracked the supposedly unbreakable armor glass windows.
Despite the setbacks, the Cybertruck has garnered significant interest from consumers, amassing over 1.5 million reservations as of November 2022. Tesla has offered customers the opportunity to place a $100 refundable deposit for pre-orders since 2019.
Originally, Tesla estimated that the Cybertruck would start at $39,900 for the single motor and rear-wheel drive model, which boasted a towing capacity of 7,500 pounds and a range of over 250 miles. However, the expected starting price for the base model has now increased to about $50,000, according to Kelley Blue Book. The dual-motor, all-wheel drive version is projected to start at around $60,000, with a towing capacity of over 10,000 pounds and a range of over 300 miles. The highest-end model, priced at approximately $70,000, will feature three electric motors, all-wheel drive, a towing capacity of 14,000 pounds, and a battery range of over 500 miles.
It’s worth noting that Tesla often adjusts prices during a model year, so these figures could change again before the end of 2023. Additionally, Cybertruck buyers may be eligible for the United States’ $7,500 federal EV tax incentives.
The launch of the Cybertruck will bring Tesla into the highly-profitable electric pickup truck segment in the United States. However, the company will face fierce competition from other automakers, including Ford with its F-150 Lightning, currently priced around $60,000. Other upcoming electric pickups, such as the Chevrolet Silverado EV and the Rivian R1T, will further intensify the rivalry. The Silverado EV Work Truck has a starting price of $77,905 and offers a range of 450 miles, with delivery expected in the fall of 2023. The Rivian starts at $74,000, and deliveries for certain trims are set to begin this summer.