Tesla CEO Elon Musk recently expressed concerns about the current high-interest rate environment and its impact on car buyers’ decisions. He emphasized that potential car buyers are primarily focused on their monthly payments, making high-interest rates a significant hurdle for them.
Musk highlighted the importance of cost in the automotive industry, stating, “I just can’t emphasize enough how important cost is… We have to make our products more affordable so people can buy them.” He compared the challenge of reducing the cost of Tesla’s cars to a complex endeavor, likening it to a “Game of Thrones, but pennies.”
In a Twitter announcement made by Tesla, the company confirmed that the production of the Cybertruck remains on schedule for later this year, with the first deliveries set for November 30th at Giga Texas. The Cybertruck’s official Twitter account also mentioned a “delivery event” on the same date. According to the shareholder presentation, the Cybertruck is currently in “pilot production,” and the Texas factory has the capacity to produce up to 125,000 units annually.
During the earnings call, Elon Musk tempered financial expectations for the Cybertruck, acknowledging the challenges ahead. He stated, “It is going to require immense work to reach volume production and be cashflow positive at a price that people can afford.” Musk also cautioned against overly optimistic expectations, mentioning that it would take a year to 18 months before the Cybertruck becomes a significant positive cash flow contributor.
As of now, Tesla has not disclosed specific specifications or pricing details for the Cybertruck.
Elon Musk also addressed the topic of Tesla advertising, acknowledging that some shareholders desire more advertising efforts. While Tesla is currently running cost-per-click online ads (as confirmed by CNBC), Musk emphasized that it’s crucial for Tesla’s advertising to provide information about affordable and accessible vehicles rather than merely showcasing great cars that potential buyers cannot afford.