Four years after its release, Tesla Cybertruck finally welcomed its first customers. The first Tesla pickups were delivered to 10 customers at a lavish event at the company's headquarters in Austin, Texas, where Elon Musk predicted the truck would usher in a new, more exciting future.
The company also provided new details about the pickup's pricing, range and features, most of which have changed significantly from the initially announced numbers. The rear-wheel-drive electric pickup starts at $60,990 (up from the original price of $39,900 announced in 2019) and has a range of 250 miles on a full charge. Pricing starts at $79,990 for the all-wheel drive version with a range of 340 miles. The enhanced version of the "Cyberbeast" model starts at $99,990 and has a cruising range of approximately 320 miles.
The angular, stainless-steel electric pickup truck has long fascinated Tesla fans, but its multiple delays have left some wondering whether it will actually arrive. The production process was reportedly extremely challenging for the company, largely due to the choice to use super-hard stainless steel for the exterior trim. Boss Musk insists that the pickup must be bulletproof, which complicates the production process.
Polarizing design is another hot topic. The polygonal shape and sharp edges are meant to show that Tesla is not interested in competing in the traditional pickup truck market. This has led some experts to conclude that the Cybertruck may be more of a halo car for Tesla, luring consumers into buying its more practical (and usable) models like the Model 3 and Y.
In fact, before the launch, Musk tried to "moderate" expectations for Cybertruck, warning investors that Cybertruck would not start bringing "positive cash flow" to the company for at least a year to 18 months. Tesla has said that it expects to start producing 250,000 pickup trucks per year by 2025, but it will be extremely difficult to increase production.
During an October earnings call, Musk said "demand has exceeded expectations," noting that more than 1 million people have paid a refundable $100 deposit to reserve a Cybertruck. But he also acknowledged that the company may have stretched its pie too far. "With Cybertruck, we dug our own graves," he said. "You know, generally speaking, no one digs their own graves better than themselves."
Now that Tesla's products are here, the focus will turn to Tesla's production and how the company gets these vehicles into customers' hands as quickly as possible. As a new entrant into the highly competitive pickup truck market, attention will also be paid to how it competes with other electric pickup trucks such as the Ford F-150 Lightning and Rivian R1T.
But those questions may be moot because Tesla doesn't expect to build many new cars, at least not at first. This polarizing design may turn off a large number of pickup truck customers. And Tesla's presence amid a cooling market for electric vehicles also means there are far fewer early adopters and technology obsessives interested in buying a giant polygonal pickup truck, despite its cool styling.
From a sales perspective, the Cybertruck could end up being a hit. But even so, it cannot compare with the historical sales of pickup trucks from Ford, Chevrolet and other companies. For Musk to dive headfirst into the lucrative and competitive pickup truck market with a controversial design and a troubled production process seems like an odd choice -- even for a man known for his odd choices.
In recent decades, the auto industry has shifted much of its production toward larger vehicles, with pickup trucks being some of its best-sellers. Companies produce in large quantities, sell in large quantities, and then make a profit. Tesla doesn't seem poised to reap the same benefits from Cybertruck.