In a recent statement, CEO Elon Musk admitted that Tesla has “dug its own grave” with the Cybertruck. The electric vehicle (EV) manufacturer has been struggling to scale up production of the angular pickup truck.
Tesla is significantly behind schedule with the Cybertruck, as it initially promised to begin deliveries in 2021 when it was unveiled in 2019. Although production started in July, customers still cannot order the vehicle and Tesla is only accepting reservation deposits.
Musk acknowledged the challenges in achieving high-volume production with the Cybertruck and making it profitable during the company’s third-quarter earnings call. Tesla is utilizing innovative production techniques for this uniquely styled truck, including the use of ultra-hard stainless steel and large-scale gigapresses in its Texas factory.
Musk stated that Tesla aims to achieve a target volume production of 250,000 units per year by 2025, once it addresses the current issues.
The Cybertruck is a departure from Tesla’s focus on producing high volumes of popular global models like the Tesla Model 3 and Model Y. Musk described the Cybertruck as a special product that is exceptionally challenging to bring to market in significant quantities.
During the earnings call, Musk also expressed concerns about high interest rates driving up prices and impacting affordability for consumers.
Tesla claims to have a million reservations for the Cybertruck but has yet to announce its pricing. It is expected that the vehicle will cost more than the initial prediction of $39,900 for the base model, which was advertised to have a range of 250 miles.
Although the first production Cybertruck was recently pictured with factory workers, indicating an impending customer handover event, Tesla has not confirmed a delivery date.
With its radical design, including a wedge-shaped body, no front grille, angular window frames, and minimal bodywork curvature, the Cybertruck presents itself as a distinct alternative to traditional trucks like the Ford F-150 Lightning.