Friday, December 01, 2023
Tesla's much-anticipated Cybertruck hits the market with a starting price of $60,990, a significant jump from CEO Elon Musk's 2019 estimate, raising eyebrows among analysts.
The stainless steel-clad truck, inspired by a James Bond movie, boasts unconventional styling, leading to production complexities and increased costs. Musk defends the pricing, stating the Cybertruck offers "more utility than a truck" and is "faster than a sports car."
At an event in Austin, Texas, Musk drove the Cybertruck onto the stage, emphasising its futuristic design and utility, showcasing a video of it towing a Porsche 911 and winning a race against a gasoline-powered 911.
Despite Musk's optimism, Tesla shares dipped 2% in extended trading. The Cybertruck, available in three variants priced between $60,990 and $99,990, aims to compete in a hot pickup truck market against rivals like Ford's F150 Lightning, Rivian's R1T, and GM's Hummer EV.
Analysts note that the Cybertruck's higher cost may appeal to a wealthier clientele seeking uniqueness, but its price point may limit its market reach.
The truck's delayed entry, two years behind schedule, positions it against formidable competitors. With the starting price exceeding Musk's earlier estimate of $40,000, new deposits for the Cybertruck now stand at $250. Despite the price adjustment, analysts anticipate its success within a niche audience.
However, concerns arise about the Cybertruck's actual range, with the longest-range version estimated at 340 miles, falling short of Musk's 2019 claim of over 500 miles.
Analysts express reservations about Tesla's range estimates and highlight competitors like Ford and Chevy as more practical options. The Cybertruck, while vital for Tesla's innovative reputation, faces challenges in a market crowded with electric vehicles, raising questions about its impact on the company's overall sales.
The Cybertruck's debut, marked by Musk's characteristic showmanship, creates a buzz but leaves lingering doubts about its pricing strategy and real-world performance.