The Cybertruck is so old now, being introduced to the public in 2019 with a dramatic flick of the hand of Tesla’s chief designer Franz von Holzhausen. During the Q4 2022 earnings call, Elon Musk confirmed that Tesla is on target with production starting this summer. Nevertheless, volume production would take more time, with an expected ramp-up in 2024.
Tesla published the financial results for the fourth quarter of 2022 and had a Q&A session with investors afterward. As usual, this meeting yielded meaningful information about Tesla’s operations and plans. The Cybertruck, the most anticipated product this year, was not among the hot topics, but Tesla executives offered interesting insight nevertheless. As you’d have expected, it’s not all rosy, and depending on what you want to see, the Cybertruck is either in trouble or Tesla’s savior.
Elon Musk himself was dressed in a T-Shirt evoking the awkward moment when von Holzhausen smashed the truck’s window with a steel ball. This was probably in expectation of the questions about Tesla’s future product. Nevertheless, the Cybertruck topic was only tangentially covered, which is understandable considering this was an investor meeting, not a geek show. Investors are more interested in achieving goals and meeting expectations than technical details, but Musk didn’t disappoint.
The most important question was related to Cybertruck’s production start, and we’re happy to tell you that Elon Musk confirmed the previous “mid-summer” statement. That’s the good news. The bad news is that the production start does not really matter, it’s the volume production that counts. About that, Tesla will not be able to mass-produce the Cybertruck until 2024, and that’s a bummer.
“For 2023, Cybertruck will not be a significant contributor to the bottom line, but it will be into the next year,” said Musk in reply to an investor’s question. “So it’s an incredible product. I can’t wait to drive it personally, it will be the car that I drive every day. I’m wearing the T-shirt with the smashed glass, and it’s just one of those products that only comes along once in a while, and it’s really special.”
This statement reflects previous analysts’ expectations. A recent survey with 24 sell-side analysts showed that Tesla’s “other vehicles” beyond the S3XY lineup would not significantly change Tesla’s bottom line for the next three years. Nevertheless, Musk had more bad news for investors regarding the Cybertruck.
Tesla’s CEO explained that the start of production is always very slow, although it increases exponentially. Musk confirmed what we already know: Tesla has started installing the production equipment at Giga Texas. This includes Castings, General Assembly, and Body Shop. Tesla has also built testing prototypes and will still have some “beta vehicles” coming next month. Nevertheless, the ramp-up would not happen until 2024.
The Cybertruck is already a five-year-old product, although it’s still far from the first customer deliveries. Until that happens, the competition is already strong, with Ford, Rivian, GM, and soon Stellantis delivering electric pickup trucks. The Cybertruck’s success depends not only on its features but also on its price, as evidenced by recent price cuts. Tesla hasn’t revealed other details about the truck, but we should find out more after production starts.
After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions. Full profile
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