He did not use the phrases “Manufacturing Hell,” particularly. However once you hear Tesla CEO Elon Musk discuss in regards to the Cybertruck at at the moment’s Q3 2023 earnings name, you virtually get the identical vibes.
Musk opened at the moment’s name by not solely asserting the corporate’s newest monetary outcomes – which noticed its sixteenth consecutively worthwhile quarter dampened by worth cuts and manufacturing unit downtime – but in addition being circumspect about its new stainless-steel EV pickup truck.
“I simply wish to mood expectations for Cybertruck,” Musk stated. “It is an important product, however financially, it is going to take a yr to 18 months earlier than it’s a vital, constructive money movement contributor. I want there was some approach to be totally different however that is simply my greatest guess.”
He later added: “We dug our personal grave with Cybertruck.”
Musk blamed the extraordinarily novel manufacturing strategies concerned with the truck, in addition to the truth that it is a completely new mannequin – one thing Tesla has traditionally struggled with when designing and releasing merchandise.
“That is merely regular for once you’ve received a product with a whole lot of new know-how, or any model new automobile program, however particularly one that’s as totally different and superior because the Cybertruck,” Musk stated. “You should have issues proportionate to what number of new belongings you’re making an attempt to unravel at scale. So I simply wish to emphasize that, one, I feel that is probably our greatest product ever… [but] it is going to require immense work to succeed in worth manufacturing and be money movement constructive at a worth that folks can afford.”
Few particulars stay identified in regards to the Cybertruck, together with how a lot it is going to value. Tesla did say in at the moment’s Q3 report that deliveries are anticipated to start in November, nevertheless it’s been delayed earlier than. Musk claimed the truck nonetheless has greater than 1 million reservations, however was cagey on when these vehicles may very well arrive in clients’ fingers.
“I feel we’ll find yourself with a quarter-million Cybertrucks a yr,” Musk stated, earlier than including, “I do not suppose we’ll attain that price subsequent yr. I feel we’ll most likely attain it someday in 2025.” That might be virtually six years for the reason that truck was first unveiled.
In principle, the Cybertruck will face intense competitors from different EV vehicles by the point it is capable of be mass-produced at an inexpensive price ticket that is worthwhile for Tesla too. On the identical time, the so-called “legacy” automakers have struggled with their very own nascent EV choices this yr alone. Ford’s F-150 Lightning has seen vital worth will increase, and simply this week, Normal Motors introduced it might push again manufacturing of a few of its Chevrolet and GMC EV vehicles practically a yr to late 2025. And Tesla has been by means of this earlier than with the Mannequin S and Mannequin 3: it reinvents how one thing works, struggles with it for some time, then will get it down.
However on this case, Tesla has needed to reinvent so much with chrome steel, a notoriously tough steel to reliably and persistently work with in automotive functions. Then once more, the Cybertruck has been a dependable hype machine: simply one of the vital eagerly anticipated new automotive debuts of this decade, even when its on-sale date has been repeatedly punted again.
Whether or not it may actually be an F-150-killer like a few of Tesla’s most ardent boosters declare stays to be seen. However even Musk will say the corporate has its work lower out getting this one proper.