Tesla (TSLA.O) expects to begin mass production of its Cybertruck at the end of next year, two years after the initial target for the much-anticipated pickup truck Chief Executive Elon Musk introduced in 2019, two people familiar with the plans told reporters.
Tesla said in October that it was working on preparing its Austin, Texas factory to produce the new model with “early production” scheduled to begin in the middle of next year. “We’re in the final lap for Cybertruck,” Musk told a conference call with financial analysts.
A slow ramp in the second half of 2023 to full output for the sharp-angled electric truck would mean that Tesla would not be posting revenue until early 2024 for a full quarter of production on a new model seen as crucial to its growth.
It would also mean a hold-up of another year for the estimated hundreds of thousands of prospective buyers who have paid $100 to reserve a Cybertruck in one of the most long-awaited, and closely monitored electric vehicle launches ever. Tesla did not instantly reply to a request to comment.
It has not disclosed the final pricing on the Cybertruck, displayed the production version of the vehicle, or described how it will manage the battery supply for the new model. In 2019, Tesla had estimated an initial price of below $40,000, but prices for new vehicles have sprung higher since then and Tesla has hiked prices across its lineup.
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Musk unveiled Cybertruck in a 2019 reveal where the vehicle’s designer cracked the vehicle’s purportedly unbreakable “armor glass” windows. The company has delayed production timing three times since: from late last year to late this year, then to early next year, and most recently to the mid-2023 target for initial production.
The launch of the Cybertruck will provide Tesla with an EV entrant in one of the most lucrative segments of the U.S. market and a competitor to electric pickups from the likes of Rivian Automotive (RIVN.O) and Ford Motor Co (F.N), both of which have rolled out models in still-limited numbers.
In January, Musk mentioned shortages in procuring components as the reason for delaying the launch of Cybertruck into 2023. In May, Tesla stopped accepting orders for the Cybertruck outside North America. Musk said then the company had “more orders of the first Cybertrucks than we could possibly fulfill for three years after the start of production.”
Automakers often ramp production gradually for a brand-new model like the Cybertruck.
Analysts have also warned that a slowing global economy will begin to hurt sales for Tesla, which has until now been able to sell all the cars it builds. Musk has said he anticipated a coming recession would last “probably until Spring of ’24.”
IDRA Group, the Italian company building the Giga Press that will be used for die-casting parts for the Cybertruck, said in a LinkedIn post last week that the 9,000-ton machine for truck part production was packed and ready to be shipped.
The post did not mention Tesla. Tesla has been using the Giga Press to reduce the cost and complexity of production of its Model Y, an innovation other automakers, including Toyota, have researched.
