Tesla (NASDAQ:TSLA) is preparing to start deliveries of their long-awaited Cybertruck electric pickup this Thursday, following CEO Elon Musk's cautious remarks about production challenges for this groundbreaking product.
The Cybertruck marks Tesla's debut in new vehicle models after almost four years, holding substantial importance in maintaining the brand's image as a pioneer in inventive automobiles.
Amidst a period where the company faces reduced demand for electric vehicles (EVs) and heightened competition, the success of the Cybertruck holds significance in driving sales, albeit not at the scale of Tesla's widely produced Models 3 and Y.
"We dug our own grave with Cybertruck," Musk stated last month. The CEO warned that the Cybertruck would take a year to 18 months before the vehicle becomes profitable on a significant level.
The pricing for the vehicle is anticipated to be disclosed during an event set to begin at 3pm ET. Musk had previously stated in 2019 that the truck would be priced at $40,000, however he has not provided any updated pricing information, despite the escalation in raw material costs.
The billionaire indicated that Tesla was on track to achieve a production rate of approximately 250,000 Cybertrucks annually by 2025. Musk also acknowledged that Tesla encountered significant hurdles in scaling up production volume for the Cybertruck due to its innovative technology and distinctive design.
According to experts, the Cybertruck's innovative body material and unconventional, futuristic design contribute to increased complexity and production costs. These unique features also pose a potential risk of alienating traditional pickup truck buyers, who prioritize utility and may not resonate with the Cybertruck's distinctive look.
A few years ago, Musk had floated the idea that if people did not like the futuristic Cybertruck design, Tesla could "build a normal looking truck."
The Cybertruck, which was delayed for two years, enters a fiercely competitive pickup truck market and will contend with established rivals such as Ford's F150 Lightning, Rivian's (NASDAQ:RIVN) R1T, and General Motors' (NYSE:GM) Hummer EV.
The Cybertruck, however, has amassed over a million reservation holders, each having placed a $100 deposit.
Shares of TSLA are down 1.38% in mid-day trading on Thursday.