Reuters informed two individuals who are familiar with the strategies that Tesla intends to commence large-scale manufacturing of its Cybertruck by the conclusion of 2023, which is two years later than the originally anticipated deadline for the highly anticipated pickup truck that Chief Executive Elon Musk revealed in 2019. (Output)
During a conference call with financial analysts, Musk informed them, “We’re in the final stages of the Cybertruck.” Tesla announced last month that it is preparing its Texas plant in Austin to begin production of a new model in early 2023.
Anticipated as crucial for its expansion, implementing a novel production method on a quarterly basis implies that Tesla will not recognize revenue until early 2024 for the complete production of the angular electric truck in the latter half of the upcoming year. A gradual increase in production is currently being implemented.
It would also mean another year of waiting for the hundreds of thousands of potential buyers who have paid $100 to reserve one, as the launch of the highly anticipated Cybertruck vehicle is closely tracked.
Tesla’s shares rose by as much as 4.3% on Tuesday, prompting a comment requesting an immediate response. Additionally, there was a 0.4% increase in Tesla’s shares.
The battery supply of the new model will be regulated, the production iteration of the vehicle was not revealed, and the ultimate pricing of the Cybertruck has not been disclosed.
Throughout its range, Tesla has increased prices since that time and costs for fresh automobiles have skyrocketed, but in 2019, Tesla had anticipated an initial cost below $40,000.
After 2023, Tesla’s ability to ramp up production of the in-house batteries may hinder the timely delivery of Cybertrucks, according to Sam Abuelsamid, an analyst at Guidehouse Insights. It was also noted by another source that the Cybertruck was specifically engineered to utilize Tesla’s highly acclaimed 4680 batteries.
As per his statement, Tesla may have to make substantial modifications to the Cybertruck’s batteries in order to transition to standard 2170 batteries.
Last month, Musk stated that the production volume details were not provided, but he mentioned that the battery output was increasing rapidly, and he also mentioned that the 4680 batteries are not anticipated to pose any constraints for the Cybertruck or any other products.
The company has recently delayed the timing for initial production to mid-2023, and then to early 2023, late 2022, and finally late 2021. During the vehicle’s 2019 reveal, Musk introduced the Cybertruck, which had supposedly unbreakable “armor glass” windows that ended up being cracked by the vehicle’s designer.
The launch of Cybertruck will give Tesla an entry into one of the most profitable segments of the U.S. Market, as a competitor to both Rivian Automotive and Ford Motor Co, with limited numbers of electric pickups in the models launched.
In January, Musk had mentioned shortages in obtaining components as the explanation for delaying the launch of Cybertruck until 2023.
According to Musk, the initial manufacturing of Cybertrucks has the potential to satisfy customer demands for a period of three years following its launch. At that time, Tesla had an overwhelming number of Cybertruck orders, exceeding their capacity to fulfill them globally, resulting in the suspension of orders outside of North America in May.
Car manufacturers typically increase production gradually for a brand-new vehicle such as the Cybertruck.
Musk has stated that he anticipates a forthcoming economic downturn to endure until the Spring of ’24. Analysts have also warned that Tesla, which has thus far managed to sell all of its vehicles, will begin to impact sales due to a declining global economy.