Trying to re-invent the wheel is admirable, primarily because of how difficult the task can be. This is basically the attraction behind Tesla’s decision to debut with the Cybertruck.Thank you for reading this post, don't forget to subscribe!
However, the difficulty of taking on that challenge appears to be a little more than Tesla can handle. At least that’s the impression Tesla CEO Elon Musk’s latest statement on the long-running Cybertruck suggests.
Is the Cybertruck really digging Tesla’s “grave”?
During Tesla’s most recent quarterly call with investors, Musk praised the Cybertruck as “an amazing product,” but also said that “getting to production volume” will be a “huge challenge,” so he doesn’t expect That production of the Cybertruck will become “cash-flow”. Positive” anytime soon.
For anyone hoping to buy a Cybertruck at the end of next month – we hope you’ve saved up enough because they won’t be getting cheaper in the near future. But the prospect of a hefty price tag isn’t the only thing stopping buyers from purchasing it as Tesla struggles to meet their demand.
Musk claims that at least one million people have already reserved the Cybertruck online; However, Tesla’s Texas Gigafactory, where the Cybertruck will be produced, only has the capacity to produce about 125,000 trucks per year.
Consumers may put off ordering the Cybertruck right now, and it will still take eight years for Tesla to produce enough trucks to meet that demand. Taking almost a decade for someone to receive their product after ordering it is not the best business strategy.
Not surprisingly, Tesla’s Cybertruck struggles (for example, its release has been delayed several times) are no different from the struggles of many EV startups – their products are expensive and difficult to make.
While it’s unlikely that Tesla will go under financially due to the difficulties surrounding the Cybertruck (e.g., Volta), this unique truck was initially scheduled to be offered for around $40,000, which Tesla swiftly canceled last year. Was. , When the body is made of stainless steel – a material that is notoriously difficult to work with – it gives the impression that the Silicon Valley-based company is putting a lot more work into this ambitious undertaking than it could have done.
Did Musk and company really know what they were doing when they started the project? The history of broken promises and numerous delays leading up to this moment answers that question.
However, despite all these difficulties (and rising production costs), Musk still dubbed the Cybertruck as Tesla’s “best product ever”, though he also reportedly told investors that the company had achieved its goal with it. Have dug the “grave” because it is too “difficult”. to manufacture.”
Possible next steps for Cybertruck
Musk has alleged that the Cybertruck’s production rate could double by 2025, reaching 250,000 trucks per year – although he also acknowledged that this estimate is only his “best guess”.
Given how things have panned out in the four years since the Cybertruck’s prototype was first unveiled, this estimate isn’t something we’d put much faith in.
- Specialization: Automotive news, dramatic writing and cinema.
- Education: San Francisco State University, BA Cinema Production (2013), San Francisco State University, MFA Creative Writing (2021).
- Feature-length play bill and jenna (2021) was selected for professional game development at Z Space in San Francisco.
- Over 1,000 automotive news articles have been published on the web.
Jarrett Hendrickson got his start as a writer when he was accepted into San Francisco State University’s Master of Fine Arts in Creative Writing program in 2018. While pursuing his degree, his short plays, captain (2019) and fight Night (2020), performed at San Francisco State University’s annual Fringe Festival. His feature-length play bill and jenna (2021) was selected for the 2020 Greenhouse Professional Play Development Workshop at Z Space in San Francisco. While studying dramatic writing and screenwriting, he concluded that Se7en It is a great modern script. He received his MFA in fall 2021. In addition to his interest in writing and movies, Jarrett also has a long-standing interest in automotive news, dating back to before he ever owned a copy of a car. motortrend When he was ten years old. His interest in all things automotive really took off at the age of 15 when he test drove a 1994 Volvo SE that would stay with him for the next decade. His continued interest in cars helped him secure his first freelance writing job when he was hired to cover automotive news for axeladdict.com, where over 1,000 of his articles were published. Jarrett currently covers the daily ups and downs of the automotive industry for Wealth of Geeks.