Happy delivery day for Cybertruck $Tesla Motors(TSLA)$
Elon said I might fail to deliver on my promises on time but I always delivered.
Youtube: Elon Musk unveils the Tesla Cybertruck
The Cybertruck was finally released 4 years late, but $Tesla Motors(TSLA)$ stock price fell instead. What happened?
At the Cybertruck delivery ceremony, Elon started by emphasizing the durability of this electric pickup truck. The stainless steel body will not corrode but can still be mass-produced.
However, the 50% surge in car prices disappointed many investors, and the $Tesla Motors(TSLA)$ stock price fell after the market closed.
Why has Cybertruck price increased so much?
Prices have skyrocketed. Will reservations worth hundreds of thousands be ruined?
What are the delivery issues and competitive landscape for this truck?
In this article, you may get some reasons for the Price decline.
1.First, let’s take a look at price changes.
$Tesla Motors(TSLA)$ 's price fluctuations after hours may be affected by the market's reaction to the Cybertruck's rising price and reduced range.
When Musk first proposed Cybertruck in November 2019, he gave a “reference price”:
The rear-wheel drive version starts at $39,900. However, the price of this truck has now risen to $60,990, an increase of 53%.
The four-wheel drive version of the Cybertruck's reference price 4 years ago was $49,900, but now it has skyrocketed to $79,990, an increase of up to 60%!
More notably, the most expensive version of Cyberbeast. For "only" $69,900 in 2019, with 500 miles promised. However, the price of this car has now jumped to $99,990, but the range has dropped to 320 miles.
These data reveal an obvious problem:
Over time, the price of the Cybertruck has increased while the mileage has decreased. Investor concerns about product price, performance and market acceptance may have contributed to the sell-off in Tesla stock.
2.Why is Tesla Cybertruck "difficult to give birth"?
Tesla Cybertruck's production plan has been postponed four times in a row, and the reservation of more than 2 million vehicles requires a full eight years to complete production.
Musk even pointed out: "From a financial perspective, it will take one year to 18 months to become a significant positive cash flow contributor." Such a statement shows that even Musk, the master of cost control, has encountered some difficulties .
Musk said at the Cybertruck delivery conference, "It is a better truck than a truck, and a better sports car than a sports car." Musk once again demonstrated the bulletproof function of this car, recreating the scene of smashing the glass, hard verification The force shocked the audience again.
September 2023
Why is Tesla Cybertruck "difficult to give birth"? How will its arrival affect the pickup truck market? What's so unique about it?
3.The order is there, delivery is a problem
An order volume of more than 2 million is an astronomical figure for any car company.
As strong as $Tesla Motors(TSLA)$ , even if we estimate based on the production capacity of 250,000 vehicles/year, it will take 8 years to digest. What’s more, Tesla’s Texas factory can only produce 125,000 vehicles per year until 2025. Only in this way can we reach the level of manufacturing 250,000 Cybertrucks per year.
Why was it built so slowly? Because it is indeed difficult to manufacture, innovation brings superficial beauty, but behind it are many problems that need to be faced, whether in terms of hardware or software.
Difficulties in manufacturing super-hard stainless steel
This material is extremely challenging to bend and manipulate. The production process requires a high level of skill to ensure that it is installed accurately while avoiding large gaps. For Tesla, this is not only a technical test, but also a huge challenge to its manufacturing capabilities.
Problems with subsequent maintenance
Analysts believe that if the car body is dented, it may be very difficult to repair. This will cause additional expense and inconvenience to the vehicle owner, which may affect the service life and maintenance costs of the vehicle.
Supply chain issues
The Cybertruck, which uses special materials and complex designs, places higher demands on raw materials and manufacturing processes, making supply chain management more complex. Global logistics problems, supply shortages and high reliance on production lines have made Cybertruck face unprecedented challenges.
4.Cybertruck’s competitive landscape
Cybertruck enters the full-size pickup truck market, which is a huge market. Traditional giants such as $Ford(F)$, $General Motors(GM)$, and $Toyota(TM)$. already have a strong presence in the space.
Among them, $Ford(F)$ 's F-150 Lightning, $General Motors(GM)$'s GMC Hummer EV, $Rivian Automotive, Inc.(RIVN)$ 's R1T, all-electric $Chevron(CVX)$ Silverado and the upcoming Ram 1500 REV are all direct competitors faced by the Cybertruck.
The diversification of the electric pickup truck market is also a major feature, with various car companies exerting their efforts in different aspects.
$Ford(F)$'s F-150 Lightning has been a huge success with its traditional looks and powerful performance,
The GMC Hummer EV has created an electric pickup truck that focuses on luxury and performance.
$Rivian Automotive, Inc.(RIVN)$’s R1T is at the forefront of technological innovation and adventure performance.
The all-electric Chevrolet Silverado has carved a niche in the market with its brand power.
Looking to the future,
Fisker's Alaska pickup truck and Canoo's pickup truck are also about to enter this fierce market. Fisker attracts consumers’ attention with its unique design and commitment to environmental protection.
Canoo, on the other hand, has entered the electric vehicle market with its avant-garde electric vehicle design and flexible subscription model.
The arrival of Cybertruck is not only an impact on the electric pickup market, but also a fierce showdown in the competition of electric vehicles.
As the market further develops and new brands emerge, Cybertruck will need to continue to innovate and optimize to stand out in this fierce competition and protect Tesla's position in the electric vehicle market.
In summary:
In the short term, $Tesla Motors(TSLA)$ 's sales will mainly rely on its existing models, especially Model 3 and Model Y. Together, these two models account for more than 90% of Tesla's sales, making them critical to Tesla's financial health and brand image.
At the end of the press conference, Elon Musk said, "Ultimately, the future will become more like the future because of Cybertruck."
What the future pickup truck market will look like, maybe we can't make a conclusion yet, but with the advent of Cybertruck, new blood has already Starting to roll over, "seeking change" will become the core issue in the next stage of the pickup truck market.
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