Elon Musk, the CEO of Tesla (NASDAQ:TSLA), detailed his projections regarding the impact of the Tesla (TSLA) Cybertruck on the company's financial outlook.
After four years since its initial unveiling, Tesla managed to begin deliveries of the Cybertruck last week, albeit in limited quantities.
With just a few units delivered, Tesla continues to strive towards optimizing its production methods for the Cybertruck. Achieving a more efficient and streamlined manufacturing process remains a work in progress, given the novelty and intricacies of its distinct design.
This endeavor will demand time and effort, considering it's a new and complex project for the company.
During an interview with industry expert Sandy Munro on Tuesday, Musk indicated that the Cybertruck is not expected to significantly affect Tesla's finances until 2025, projecting the EV truck to occupy a minor fraction of the company's overall delivery volume in 2024.
The CEO has consistently adopted a cautious stance regarding the Cybertruck and its prospects, recognizing the considerable challenge involved in its construction and delivery process.
Musk revealed during the automaker’s most recent earnings call that it could take roughly 18 months for any major production or financial impacts to take effect.
“It’s a great product, but financially, it will take, I don’t know, a year to 18 months before it is a significant positive cash flow contributor. I wish there was some way for that to be different, but that’s my best guess. So, really, the demand is off the charts. We have over 1 million people who have reserved the car.” Musk said during the Earnings call.
Shares of TSLA are up 1.63% near end of day trading on Tuesday.