Reddit co-founder Alexis Ohanian has described his first drive of Tesla’s pricier-than-expected Cybertruck pickup as “the start of an epic journey,” Reuters reported.
Following Tesla CEO Elon Musk’s recent unveiling of the vehicle, Ohanian was among the first dozen customers to take delivery of the Cybertruck on Thursday. According to Ohanian, the Cybertruck drives and feels like Tesla’s Model X SUV on the inside.
“This is the start of an epic journey,” Ohanian said as he live-streamed his first drive of the Cybertruck on social media platform X. “Initial feeling about this vehicle – smooth, drives a lot, like my Model X. It is big but not unwieldy.”
The long-delayed Cybertruck, which starts at $60,990, is expected to draw a niche, affluent clientele, at least initially. Despite its steep price tag, analysts and branding experts believe the Cybertruck has the potential to uplift Tesla’s brand and bring the company back top of mind among consumers.
However, concerns have been raised about the Cybertruck’s impact on Tesla’s financials next year. Some analysts have forecasted ambitious delivery numbers for the vehicle, while others believe it may not be until mid-2025 that Tesla becomes free cash flow positive.
The Cybertruck, which has been two years behind schedule, enters a hot pickup truck market to compete with the likes of Ford’s F150 Lightning, Rivian Automotive’s R1T, and General Motors’ Hummer EV. Despite its delayed arrival, the Cybertruck is seen as more of a ‘halo’ product to attract consumers to the brand for the mainstream vehicles Model 3 and Model Y, according to RBC Capital Markets analyst Tom Narayan.
At $235.45, Tesla was set to lose about $15 billion in market valuation on Friday. It is currently trading at about 65 times its 12-month forward earnings estimates, according to LSEG data.
The release of the Cybertruck is seen as critical to Tesla’s reputation as a maker of innovative vehicles, especially at a time when the company is battling softening electric-vehicle demand and rising competition.
Chavi Mehta reports on U.S. technology companies, including semiconductor firms for Reuters. Her work usually appears in the Technology and Business sections.
Reporting by Samritha Arunasalam and Chavi Mehta in Bengaluru and Abhirup Roy in San Francisco; Editing by Devika Syamnath and Maju Samuel
Our Standards: The Thomson Reuters Trust Principles.