Amidst a turbulent financial landscape, Tesla will unveil the much-awaited Cybertruck at Giga Texas later this year. The bold move comes as Tesla navigates through a storm of economic challenges.
Tesla released its 2023 Q3 Quarterly Update this week, showing a dip in operating income to $1.8 billion, which resulted in a 7.6% operating margin. The dip was largely attributed to the Cybertruck. Despite this, Tesla is staying true to its vision for the futuristic vehicle.
Tesla’s pivot into automotive design and its goal to redefine what a truck can be is the brainchild of Elon Musk. The Cybertruck’s rollout is nearly two years behind schedule, with Tesla now also focusing on the production of high-density 4680 battery cells and efforts to ramp up lithium refining operations in the US.
Cybertruck release date confirmed
In spite of these ongoing projects and distractions, Tesla reaffirmed that the Cybertruck’s production remains on course. The first deliveries are slated for the end of November. Musk also underscored the difficulty in ramping up the production of such a unique vehicle, stating it’s an endeavor to not just invent the car, but the way to manufacture it.
Musk says if Tesla were to go with a copycat vehicle design, “of which there are literally 200 models that are slight variations […], then it’s really not that hard.” However, he was going for “something radical and innovative and something really special, like the Cybertruck.”
Therefore, he says, “it is extremely difficult because there’s nothing to copy. You have to invent not just the car, but the way to make the car. So, the more uncharted the territory, the less predictable the outcome.”
Tesla facing a storm
Meanwhile, Musk’s remarks during the Q3 shareholders meeting painted a picture of a company refusing to back down. He said Tesla was a “capable ship” facing a storm, but it is far from sinking.
The company’s 2023 Q3 Quarterly Update Deck shows how the cost of production ramp and factory upgrades impacted Tesla’s year-on-year operating income. “AI and other R&D Projects” were also cited as reasons for the decrease.
Musk predicts Tesla will “end up with roughly [a quarter million] Cybertrucks a year”. He says it’s unlikely that Tesla will reach that output rate by 2024, but it’s a goal he hopes to achieve within the next two years.
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As Tesla prepares for the Cybertruck’s launch, the automotive world watches with bated breath. After all, the stakes remain high and the waters turbulent but Musk thinks the challenges will begin to even out “sometime in 2025.”
About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
