Tesla CEO Elon Musk said that the company will have “enormous challenges” in reaching volume production of the Cybertruck given it is a new product. (FREDERIC J. BROWN/GETTY IMAGES)
EV giant Tesla Inc (NASDAQ:TSLA) detailed its expectations for its upcoming vehicle Cybertruck during the company’s third quarter earnings call on Wednesday.
CEO Elon Musk said that the company will have “enormous challenges” in reaching volume production of the Cybertruck given it is a new product.
“This is simply normal for when you’ve got a product with a lot of new technology or any new vehicle, but especially one that is as different and advanced as the Cybertruck, you will have problems proportionate to how many new things you’re trying to solve at scale,” Musk said.
He added that it would take a year to 18 months from initial deliveries before the Cybertruck is a significant positive cash flow contributor at a price people can afford. Musk did not, however, divulge the price range of the new vehicle.
The demand for the vehicle is huge with over a million people having reserved the car, Musk said, in what was the first official confirmation of these numbers. The company sees delivering roughly 0.25 million Cybertrucks in a year eventually. However, this might not happen next year, Musk warned.
“I think we’ll probably reach it sometime in 2025. That’s my best guess,” Musk said.
The company dug its own grave with the Cybertruck, Musk said, hinting at its new design.
“Special products that come along once in a long while are just incredibly difficult to bring to market, to reach volume, to be prosperous. It’s fundamental to the nature of the newness,” Musk said.
After teasing the Cybertruck delivery event since early this year, Tesla finally announced the delivery event date on Wednesday. The first batch of Cybertrucks will now be delivered on Nov.30 at Tesla’s gigafactory in Austin, Texas.
Fans and enthusiasts have been awaiting the vehicle since its announcement in 2019 and more avidly since the last quarter.
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