Elon Musk outlines expectations for Tesla Cybertruck’s financial impact

Tesla CEO Elon Musk outlined his expectations for the Tesla Cybertruck and its potential effect on the automaker’s finances.

Last week, Tesla finally delivered the Cybertruck four years after it was initially unveiled.

Only delivering a handful of units, Tesla is still working to move toward a more streamlined and efficient production process, which is something that will take time as it is not only a new project, but one that is complex due to its unique design.

In an interview with industry expert Sandy Munro, Musk said that the Cybertruck is unlikely to cause any major financial impact for Tesla until 2025, as it will make up a small percentage of the company’s total delivery volume in 2024.

Musk has maintained a somewhat tempered approach to the Cybertruck and its potential, as he is well aware that it will be a challenge to build and deliver.

Elon Musk tempers Tesla Cybertruck ramp expectations; immediately gets misunderstood by analyst

The Tesla CEO kept this narrative alive during the most recent Earnings Call, where he said that it could take roughly 18 months for any major production or financial impacts to be seen.

In terms of finances, Musk said:

“It’s a great product, but financially, it will take, I don’t know, a year to 18 months before it is a significant positive cash flow contributor. I wish there was some way for that to be different, but that’s my best guess. So, really, the demand is off the charts. We have over 1 million people who have reserved the car.”

And for production outlook, he added later in the Earnings Call:

“I would be very disappointed if it took us — and that would be shocking if it took us three years. But 18 months from initial deliveries to have — to reach volume and reach prosperity with an immense — I can’t tell you how much the blood, sweat, and tears level required to achieve. That is just staggering.”

The Cybertruck is a polarizing vehicle that is unlike any other, and it will likely only be built and delivered to a very small amount of people next year. Production is going to be challenging, and Tesla is evidently prioritizing the Dual Motor and CyberBeast trims as the Single Motor configuration has been delayed until 2025.

Yesterday, Teslarati uncovered the first EPA documents to be released on the Cybertruck, and you can see them here.

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Source: https://www.teslarati.com/tesla-cybertruck-elon-musk-financial-impact-expectations/