The Internet is flooded with Cybertruck News as Tesla has confirmed from their official handle to start the deliveries of Cybertruck after 4 years on November 30, 2023, at Giga Texas. This is big as customers have been awed by this out-of-the-box vehicle and since then customers have been waiting for the deliveries.
Although the deliveries have been late by two years from the scheduled delivery date at least it is happening now.
Not everyone looks at Cybertruck as a positive angel as Elon Musk says “We dug our own grave with Cybertruck,” during an earnings call that followed the company’s financial report, Elon Musk remarked on the impact to the company’s margins, attributing it in part to the production scale-up of the truck.
Production Capacity of Cybetruck
The company has officially stated its manufacturing capacity, indicating the ability to produce over 125,000 Cybertrucks on an annual basis. Elon Musk additionally mentioned the potential for this capacity to potentially increase to 250,000 units by the year 2025. Recently Tesla Completed its First Cybertruck Production at Giga Texas.
An official tweet from Tesla’s official handle confirmed that “We have substantially increased the scale of our AI training infrastructure, to accommodate the expansion of our data set and the ongoing development of Optimus. Currently, Optimus is undergoing training for rudimentary tasks through AI, instead of relying on pre-coded software, all while its underlying hardware undergoes continuous enhancement.”
Q3 Shareholder Update → https://t.co/sXBSeLibSL
—
HighlightsCybertruck production remains on track for later this year, with first deliveries scheduled for November 30th at Giga Texas.
Production of our higher density 4680 cell is progressing as planned & we continue building… pic.twitter.com/FqpseLujaA
— Tesla (@Tesla) October 18, 2023
Booking of Cybertruck Hitting 1 Million
Elon Musk disclosed that the truck has hit a whooping one million plus reservations, a process that entails a modest deposit.
Seth Goldstein, an equity strategist at Morningstar, commented, “I wouldn’t anticipate Tesla to achieve sales or production numbers anywhere near the 125,000 mark. However, their announcement appears to signal the forthcoming production capacity for the Cybertruck as its manufacturing processes escalate.
Expected Price of Cybertruck
In July, the company successfully completed the construction of its inaugural Cybertruck. Originally, back in 2019, the company had envisioned pricing the vehicle at a rate below $40,000. However, the landscape of electric vehicle pricing has undergone a transformation, primarily attributed to the escalation in the costs of battery raw materials.
In a competitive context, the rival Rivian R1T model is currently available starting at $73,000, while the F-150 Lightning commences at approximately $50,000.
Cybertruck Design Issues
A recent conversation leak between Musk and his employee regarding the build quality issue around misaligned doors and uneven surfaces cast a shadow on Tesla’s visionary and environmentally-conscious brand. What was initially presented as a sleek and futuristic concept in digital renderings has now assumed an unconventional and somewhat unstable appearance in the physical vehicle. We can expect that the delivered models will be made with perfection.
Tesla’s Share Price
Following the initial decline during after-hours trading, company shares exhibited resilience, rebounding from a drop of up to 2.8% at one point. As of 4:36 p.m. in New York, the stock was up 2.2%.
The company reported an adjusted profit margin of 16.1%, while the automotive gross margin (excluding regulatory credits) for the quarter stood at 16.3%. These figures diverged from the 17.7% margin expected by analysts surveyed by Bloomberg. This discrepancy in profit margins adds an intriguing layer to Tesla’s current financial narrative.
Writer’s Remark
Tesla has been involved in the price slash for a long time now and the launch of Cybertruck after the design controversy and declining profit margins seems a step taken the right direction. Let’s see how the response will be of Cybetruck once it is delivered to the customers.
Read More: Tesla Gigafactory Texas: All You Need To Know