Tesla; Cybertruck is coming at the end of November – only profitable 18 months after its release20. October 2023
Tesla; Cybertruck is coming at the end of November – only profitable 18 months after its release
San Francisco, January 20, 2023
Tesla has confirmed that the first deliveries of the Cybertruck will take place on November 30 at its Gigafactory in Austin, Texas.
During Tesla’s third-quarter earnings call, CEO Elon Musk said he wanted to “temper expectations” for the electric pickup, adding that the company could face “tremendous challenges” in ramping up production and cash flow of the truck in a positive way.
The event will also reveal pricing details for the electric pickup, originally estimated at $39,900 in 2019.
Musk confirmed that more than a million people have reserved the truck, which has faced multiple production delays due to the pandemic.
Tesla could reach annual production of about 250,000 Cybertrucks, but perhaps not until 2025. It could take about 18 months for the truck to be profitable after its launch, he stressed. “And I think it’s our best product ever, but it’s going to take tremendous work to reach mass production and be cash flow positive at a price that people can afford,”.
Shares of Tesla fell over 9% on Thursday following disappointing third-quarter results. Quarterly profit of $0.66 per share was the lowest in two years, and revenue of $23.35 billion missed both Wall Street estimates. Tesla’s operating margin fell to 7.6% from 17.2% a year ago.
Finally, profitability was also impacted by falling vehicle sales prices, unfavorable exchange rates and increasing operating costs associated with projects such as Cybertruck and AI.