Tesla electric pickup truck mass production may be a problem

Stainless steel body, armored glass, all-terrain tires, unique and avant-garde design makes it widely concerned... After four setbacks in the mass production plan over the past two years, Tesla's first electric Cybertruck was finally delivered to customers in the early morning of December 1. The delivery event was held at the Gigafactory in Texas, USA, and the vehicle officially began delivery in North America at the same time. But the price is higher than expected, the driving range is much lower than promised, and mass production has become a major problem.

Seemingly "amazing market", in fact, "road obstruction and long". It's been a few years since Tesla first unveiled Cybertruck in 2019, and the market doesn't seem to be buying Tesla's Cybertruck either: After the press conference, Tesla shares fell as much as 3% late Thursday before closing down nearly 2%. The cheapest version of the Cybertruck starts at $60,990 (about 430,000 yuan), which is more than 50 percent higher than the 2019 price forecast, and some analysts point out that the high price may reduce the appeal of the model.

Compared with established truck manufacturers such as Ford and General Motors, Cybertruck does not have an advantage in price and mileage. The Cybertruck, for example, has a range of about 250 to 340 miles, compared with Ford's F-150 Lightning, which can travel 230 to 320 miles on a single charge and sells its basic Pro model for $49,995. Far less than Cybertruck. In the years since Tesla developed and designed Cybertruck, electric pickup trucks have gained rapid development in the United States. For example, the highest-selling pickup F-series in the United States has sold about 636,900 vehicles in 2022, an increase of 19.7%.

Innovation means taking risks, and non-mainstream design can also hinder scale production, and Cybertruck faces an uphill battle in mass production. The shape and manufacturing process of the pickup truck have remained largely unchanged for more than 80 years, and the shape and manufacturing process of the Cybertruck have been completely redesigned, but the innovation of materials and processes means that Tesla has to reinvent the equipment and revolutionizing the manufacturing process. Cybertruck uses molded metal sheets rather than stamping machinery, a manufacturing technique that was not yet proven at scale when Tesla launched the vehicle in 2019 and is likely to hinder mass production.

In addition, the current product line can not meet the market demand. Tesla claims that Cybertruck production is unlikely to reach 250,000 units a year before 2025, but it already has more than 2 million orders. Even with an estimated capacity of 250,000 vehicles per year, just booking the vehicles would be enough for Tesla to produce for eight years. Musk has said that launching Cybertruck was too difficult and manufacturing was much more difficult than the original design.

Cybertruck has had an adverse impact on Tesla's profitability, with expenses exceeding expectations amid price cuts and declining gross margins. According to the latest earnings report, Tesla's gross profit margin fell below 18% in the third quarter of 2023, and net profit fell 44%, which is the worst earnings report in four years. Musk explained that underutilisation of new factories and spending on projects such as Cybertruck, an electric pickup truck, and artificial intelligence had led to higher operating expenses and hit margins.

It is foreseeable that Tesla is difficult to break through the mass production of Cybertruck, and Tesla's financial situation will continue to be under great pressure as demand for electric vehicles in the United States slows and competition intensifies.