Tesla’s Cybertruck, priced higher than anticipated and offering driving ranges below CEO Elon Musk’s initial promises, has left some deeply disappointed while intriguing others with its futuristic, SUV-like characteristics.
Two years behind its original schedule, the Cybertruck is entering a competitive pickup truck market, challenging established players like Ford’s F150 Lightning, Rivian Automotive’s R1T, and General Motors’ Hummer EV.
Among the first dozen customers to receive the vehicle, Reddit co-founder Alexis Ohanian noted that the Cybertruck’s driving experience and feel resemble Tesla’s Model X sport utility vehicle.
“Initial impressions of this vehicle – smooth, drives a lot like my Model X. It is big but not unwieldy,” Ohanian shared during a live-streamed first drive of the Cybertruck on the social media platform. He expressed excitement about being the “coolest dad” when picking up his child from school.
With a starting price of $60,990 (approximately Rs. 51 lakh), the Cybertruck is more than 50 percent pricier than Elon Musk’s 2019 projection. This higher cost may limit the vehicle’s appeal, reflected in Tesla’s stock experiencing a decrease of over 2 percent since before the launch.
Among the disappointed customers is Christian Cook, a financial services executive based in Texas, who had reserved a Cybertruck in 2019, anticipating a more affordable pickup with an extended single-charge range, as promised by Musk.
“The truck pricing and range is a huge letdown,” expressed Cook, a Model 3 driver who had made financial decisions based on plans to purchase a Cybertruck. “My respect for Musk has taken a huge hit. My loyalty to Tesla has taken a huge hit.” Analyst Garrett Nelson from CFRA predicts that the high price could lead to customer cancellations, expecting Tesla to adjust pricing based on future demand.
Constructed from shiny, bullet-proof stainless steel and inspired by a James Bond movie’s car-turned-submarine, the Cybertruck has the potential to enhance Tesla’s brand, which has faced challenges due to significant price cuts aimed at boosting demand, according to analysts and branding experts. “The Cybertruck gets a lot of attention. It brings Tesla back top of mind,” noted Spencer Imel, a partner at consumer insights firm Langston.
However, analysts are skeptical about its impact on Tesla’s mass-market positioning, especially in comparison to brands like Ford catering to everyday car buyers. The electric pickup’s high price and extended wait time for substantial financial benefits have raised concerns among analysts.
Musk’s personal impact on building the Tesla brand has faced scrutiny this week following a live interview where he expressed frustration with advertisers leaving his X social media platform (formerly Twitter) over antisemitic content. This development has raised concerns among investors and some consumers, potentially impacting Tesla’s appeal, according to Allen Adamson, co-founder of brand and marketing consultancy Metaforce.
“Some of the strange things” Musk has done are awakening early adopters who initially bought into the dream of a sustainable future, turning him from a “rebel” into a “misguided person” for some, noted JP Kuehlwein, an adjunct professor of marketing at Columbia University Business School. Analysts suggest that the Cybertruck may not significantly contribute to Tesla’s financials next year, with Bernstein forecasting 250 deliveries this year and 75,000 for the next, acknowledging that these figures “may be ambitious.”
Musk has outlined a production rate goal of around 250,000 Cybertrucks annually by 2025. Tesla, however, has cautioned about facing substantial challenges in scaling production and achieving positive free cash flow, likely not until mid-2025, which could impact profitability. Amidst softening electric vehicle demand and growing competition, a brand refresh becomes crucial for Tesla, particularly as it grapples with an older product lineup that doesn’t sufficiently address the market and lacks new mass-market offerings until late 2025, according to Bernstein analysts.