Nov 1 (Portal) – Tesla (TSLA.O) aims to start mass production of its cybertruck in late 2023, two years after the original target for the long-awaited pickup truck revealed by Chief Executive Elon Musk in 2019, two Those with knowledge of the plans told Portal.
Tesla said last month that it was working to prepare its Austin, Texas, plant to build the new model, with “early production” set to begin in mid-2023. “We’re in the last round for Cybertruck,” Musk said in a conference call with financial analysts.
A gradual ramp up to full power of the edged electric truck in the second half of next year would mean Tesla wouldn’t post revenue for a full quarter of production of a new model until early 2024, which is expected to be key to its growth.
It would also mean another year of waiting for the estimated hundreds of thousands of potential buyers who paid $100 to reserve a Cybertruck at one of the most anticipated and closely followed electric vehicle launches of all time.
Tesla did not immediately respond to a request for comment. Tesla shares rose 0.4% after rising 4.3% earlier Tuesday.
It hasn’t announced final pricing for the Cybertruck, revealed the production version of the vehicle, or indicated how it will manage battery power for the new model.
In 2019, Tesla had forecast an initial price below $40,000, but since then new vehicle prices have skyrocketed and Tesla has raised prices across its lineup.
Another source said Cybertruck is designed to use Tesla’s much-vaunted 4680 batteries. However, Guidehouse Insights analyst Sam Abuelsamid said Tesla hasn’t been able to significantly ramp up production of its in-house batteries, which could result in further cybertruck delays beyond the end of 2023.
Tesla may need to significantly redesign Cybertruck batteries to move to traditional 2170 batteries, he added.
Tesla’s Cybertruck on display in Manhattan’s Meatpacking District on May 8, 2021 in New York City, United States. Portal/Jeenah Moon
Musk said last month that the 4680 batteries are not expected to be “a limiting factor for Cybertruck or anything else.” He said battery performance is growing exponentially, with no details on production volume.
Cracked Windows
Musk introduced Cybertruck in a 2019 reveal in which the vehicle’s designer broke the vehicle’s supposedly unbreakable “bulletproof glass” windows. The company has since pushed back the production timing three times: from late 2021 to late 2022, then to early 2023, and most recently to the mid-2023 target for initial production.
The launch of the Cybertruck gives Tesla an EV entrant in one of the most profitable segments of the U.S. market and an electric pickup competitor to companies like Ford Motor Co (FN) and Rivian Automotive (RIVN.O), both of which have entered the market Models in limited quantities.
In January, Musk cited bottlenecks in sourcing components as the reason for pushing Cybertruck’s market launch to 2023.
In May, Tesla stopped taking orders for the Cybertruck outside of North America. Musk said at the time that the company had “more orders for the first Cybertrucks than we could possibly fulfill three years after the start of production”.
Car manufacturers often slowly ramp up production for a completely new model like the Cybertruck.
Analysts have also warned that a sluggish global economy will weigh on sales for Tesla, which has been able to outsell every car it has made. Musk said he expects a coming recession to last “probably until spring 24.”
IDRA Group, the Italian company that makes the Giga-press used for die-casting parts for the Cybertruck, said in a LinkedIn post last week that the 9,000-ton machine for the production of truck parts is packaged and ready to ship .
The Post did not name Tesla. Tesla is using the Giga Press to reduce the cost and complexity of producing its Model Y, an innovation that other automakers, including Toyota, have been exploring.
Reporting by Hyunjoo Jin in San Francisco and Zhang Yan in Shanghai; writing by Kevin Krolicki; Edited by Muralikumar Anantharaman and Josie Kao
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