2023-12-01 16:53:00
Tesla’s electric van, the Cybertruck, has finally been unveiled by CEO Elon Musk. The van, made of shiny stainless steel, was inspired by a car that transforms into a submarine in the 1977 James Bond film “The Spy Who Loved Me.” The unique design and material of the vehicle added to the complexity of its production and raised the costs, leading to a much higher selling price than initially estimated.
There will be various versions of the electric van priced between $60,990 and $99,990. The highest-performance pickup version, called the “Cyberbeast,” will be available next year, with a starting price of $80,000.
However, the high price of the Cybertruck may alienate traditional van buyers who prioritize utility over design. According to Wall Street estimates, the new price will mainly attract selected affluent buyers.
In 2019, Musk estimated that the Cybertruck would cost about $40,000, which attracted more than a million reservations that paid a pre-order fee of $100. The CEO did not update the estimated price until recently, despite the increase in raw material costs for electric vehicles. Now, the pre-order fee has also increased to $250.
The Cybertruck is entering a competitive pickup truck market, competing with models such as Ford’s F150 Lightning and Rivian’s R1T. The success of the Cybertruck is critical to Tesla’s reputation as a manufacturer of innovative vehicles.
However, Tesla has recently been facing softening demand for electric vehicles and growing competition. The company is banking on the innovative electric van to generate sales, although it may not reach the level of sales of the Model 3 and Model Y.
Musk has openly stated that it will take between a year and 18 months for the Cybertruck to become a significant contributor to cash flow. In addition, the company revealed its third-quarter results, reporting an earnings per share of 66 cents on revenues of $23.4 billion, which fell short of analysts’ expectations.
Despite the challenges, Tesla remains focused on reducing the cost per vehicle, generating free cash flow, and investing in artificial intelligence and other growth projects. The company still holds $312 million worth of Bitcoin and has reiterated its 2023 delivery forecast of 1.8 million vehicles.
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