Tesla’s long-awaited Cybertruck is finally here, but it comes with a price tag that might shock some potential buyers. CEO Elon Musk had previously touted the truck’s starting price at $39,000, but it has been announced that it will actually start at $60,990. Analysts say this high cost will draw affluent buyers.
The truck, made of shiny stainless steel and shaped into flat planes, has drawn inspiration from the 1977 James Bond movie “The Spy Who Loved Me.” However, this unconventional, futuristic styling and new body material have added complexity and costs to production. This could potentially alienate traditional pickup truck buyers who prioritize utility, according to experts.
Musk, however, is confident in the Cybertruck’s capabilities, boasting that it has “more utility than a truck” and is “faster than a sports car.” At a recent event in Austin, Texas, Musk drove the Cybertruck onto the stage to cheers from the crowd and handed over vehicles to about a dozen customers.
Despite the excitement surrounding the Cybertruck, Tesla shares fell 2% in extended trading after the announcement, and the price has raised eyebrows in the industry. Still, Musk remains optimistic about the vehicle, predicting that Tesla will reach a production rate of roughly 250,000 Cybertrucks per year by 2025.
While the Cybertruck’s price may deter some, Musk is confident that it will appeal to a select group of wealthy customers who are willing to pay a premium for its unique and quirky design. As the Cybertruck enters the hot pickup truck market, it will compete with the likes of Ford’s F-150 Lightning, Rivian Automotive’s R1T, and General Motors’ Hummer EV.
Despite the anticipation for the Cybertruck, Tesla is facing challenges in ramping up production and meeting expectations. Musk has warned investors that it may take a year to 18 months for the Cybertruck to make a significant cash flow contribution.
Furthermore, the Cybertruck’s estimated range of 340 miles has drawn criticism from experts, and concerns have been raised about its performance compared to competitors like the Chevrolet Silverado EV.
Overall, while the Cybertruck promises to be a groundbreaking addition to Tesla’s lineup, its high price and unimpressive range might pose challenges for the company in a competitive market.