Can Tesla’s Cybertruck Overcome Production Pitfalls?

Tesla (TSLA) is expected to begin deliveries of its new Cybertruck on November 30, more than two years behind schedule. When CEO Musk first unveiled the Cybertruck prototype in 2019, he touted a vehicle with more than 300 miles of range that would be priced around $50,000, cheaper than the price consumers were paying for a Ford F-150, America’s best-selling pickup.  However, Tesla has since halted specifications from its Cybertruck order page, and Musk has warned about cost and manufacturing challenges.

Tesla started taking deposits for the Cybertruck, marketing starting prices ranging from $39,900 to $69,900.  However, due to rising production costs and inflation, the price of the Cybertruck could climb to around $60,000.  In an earnings call last month, CEO Musk said ramping up production of the truck was a challenge on par with the “production hell” that the company endured in the past. Musk warned that it may be another 18 months until the company reaches volume production and generates significant cash flow from the pickup.