With a starting price of $60,990, Tesla’s Cybertruck is now priced 50% higher than the initial estimate
Tesla’s (TSLA.O) much-anticipated Cybertruck will have a starting price of $60,990, surpassing CEO Elon Musk’s 2019 projection by over 50%, making it a choice for a specific segment of affluent buyers, as per analysts.
Elon Musk mentioned that the truck, constructed from glossy stainless steel and featuring flat planes, draws inspiration in part from a car-transformed-into-submarine in the 1977 James Bond film “The Spy Who Loved Me.”
The innovative body material and unconventional, futuristic design contribute to increased production complexities and costs, potentially distancing it from traditional pickup truck buyers who prioritize utility, according to experts.
However, Musk, who has set the prices for the three versions of the vehicle ranging from $60,990 to $99,990, asserted on Thursday that the Cybertruck offers “more utility than a truck” and is “faster than a sports car.”
To the applause of the audience, Musk drove a Cybertruck onto the stage and later personally handed over vehicles to approximately a dozen customers at an event held in Austin, Texas.
Expressing his enthusiasm for the truck’s design, Musk declared, “Finally, the future will look like the future,” and showcased a video demonstrating the Cybertruck towing a Porsche 911 and outpacing another gasoline-powered 911 in a brief race.
After closing down 1.6% at $240.08, Tesla shares experienced a 2% decline in extended trading.
While Musk didn’t disclose the vehicle’s prices during the event, Tesla’s website provided the pricing details. The top-performing variant, known as the ‘Cyberbeast,’ is scheduled for release next year, along with the all-wheel-drive version starting at an estimated $80,000.
The least expensive rear-wheel-drive model, with an estimated starting price of around $61,000, is expected to be available in 2025.
Jessica Caldwell, the head of insights at auto research firm Edmunds, remarked, “This is going to appeal to … definitely a wealthier clientele that can afford the price point and they want something that is unique and quirky.”
“That’s simply not a significant portion of the population, especially considering current interest rates, who can afford that.”
After Musk initially projected in 2019 that the Cybertruck would be priced at $40,000, over a million reservation holders placed $100 deposits for the vehicle. Despite increasing raw material costs for electric vehicles (EVs), Musk had not provided an updated price until Monday.
Musk mentioned on Thursday that new deposits now stand at $250.
The pricing did not come as a surprise to many, according to Paul Waatti, an analyst at consultancy AutoPacific, who anticipated before the event that the Cybertruck would appeal to a more niche audience.
EXTRAVAGANT DISPLAY The Cybertruck, delayed by two years, enters a fiercely competitive pickup truck market, aiming to rival vehicles like Ford’s (F.N) F150 Lightning, Rivian Automotive’s (RIVN.O) R1T, and General Motors’ (GM.N) Hummer EV.
Rivian’s R1T is priced starting at $73,000, the F-150 Lightning begins at approximately $50,000, and the larger, more potent Hummer EV pickup exceeds $96,000 in cost.
As Tesla’s first new model in almost four years, the Cybertruck holds significant importance for the company’s reputation as a pioneer in innovative vehicle manufacturing.
Amidst challenges of diminishing electric vehicle (EV) demand and heightened competition, the Cybertruck plays a crucial role in driving sales, although not to the extent of the company’s high-volume Models 3 and Y.
Musk moderated investors’ expectations about the product in the previous month, highlighting production ramp-up challenges and cautioning that it would take between a year and 18 months for it to significantly contribute to cash flow.
Prior to the launch, Musk diverted media focus to a different topic by providing a profanity-laden interview to the New York Times on Wednesday. He expressed frustration with advertisers who left his social media platform X, formerly known as Twitter, due to antisemitic comments.
On Thursday, he commented about the truck, stating, “It’s essentially an extremely practical truck. It’s not just a grandstanding showpiece like me.”
DISAPPOINTING RANGE The longest-range version of the Cybertruck is estimated to cover a distance of 340 miles (547 km) on a single charge and includes a “range extender,” an additional battery pack that extends its range to 470 miles.
In 2019, Musk had claimed the truck would have the capability to travel 500 miles or more on a single charge.
Sam Abuelsamid, the principal research analyst at Guidehouse Insights, commented, “As a truck, the Ford and Chevy are more useful and certainly easier to see out of.” He added that, given Tesla’s historical trend of falling short of range estimates in real-world driving by 10%-20%, he wouldn’t expect the longest-range version of the Cybertruck to exceed 300 miles on the road. Abuelsamid also noted that the Chevrolet Silverado EV can surpass its rated range of 450 miles.
Musk had previously mentioned a production rate of approximately 250,000 Cybertrucks per year by 2025 but did not provide an update on Thursday.
During the 2019 unveiling, Tesla’s chief designer, Franz von Holzhausen, used a metal ball to showcase the truck’s supposedly unbreakable “armor glass” window, only to shatter it. On Thursday, Holzhausen threw a baseball at the Cybertruck window, and it bounced off.