Elon Musk: Tesla “dug its own grave” with Cybertruck

Tesla has “dug its own grave” with the Cybertruck, CEO Elon Musk said, as the company struggles to ramp up production of the angular pickup.

The US EV maker is a long way behind schedule with the Cybertruck, having promised 2021 deliveries at its 2019 unveiling. The company started production in July, however customers still can’t order the vehicle, with Tesla only taking reservation deposits. 

“There will be enormous challenges in reaching volume production with the Cybertruck, and then in making a Cybertruck cash flow positive,” the Tesla boss told analysts and investors on the company’s third quarter earnings call on Wednesday.

Tesla is using innovative production techniques to build the uniquely styled truck, which is made from an ultra-hard stainless steel that the company said it had to invent. The company is also using 9000-tonne gigapresses to mold large sections of the underbody at in its factory in Texas, as well as installing what it calls the largest hot stamping facility in the world.

Musk said the company would reach its target volume production of 250,000 units per year starting in 2025, once it solves the issues it is facing.

The Cybertruck is an outlier for a company that has focused its attention on producing high volumes of popular global models as efficiently as possible, including the Tesla Model 3 and Tesla Model Y.

“We dug our own grave with Cybertruck”, Musk said on the call. “Cybertruck’s one of those special products that comes along only once in a long while. And special products that come along once in a long while are just incredibly difficult to bring to market, to reach volume, to be prosperous.”

Musk spoke about the problems of bringing the truck to market in way that’s both profitable for Tesla and “at a price people can afford”. On the call Musk decried high interest rates that were pushing up prices, making cars less affordable.

Tesla claims it has 1 million reservations for Cybertruck but has yet to price the vehicle. The car is likely to cost much more than the launch prediction of $39,900 for the entry level model, which was said to have a range of 250 miles.

The first production Cybertruck was pictured on Tesla’s social media channels recently, surrounded by factory workers at the EV maker’s Texan headquarters, prompting speculation that a customer hand-over event was approaching, but Tesla has yet to confirm a first delivery date. 

The Ford F-150 Lightning rival is the same length (5.87m) as traditional competitors but features a vastly different look both inside and out. For starters, it sports a radical wedge-shape design, no front grille, angular window frames and bodywork featuring almost no curvature.

Its body is said to be made of “ultra-hard 30X cold-rolled stainless steel” and is claimed to be bulletproof against 9mm bullets.

Three powertrain options will be offered, with one, two or three electric motors. The single-motor, rear-wheel-drive version will do 0-60mph in 6.5sec and has a claimed range of 250 miles. 

It can tow 3400kg, has a 1360kg payload and was originally claimed to be priced from $39,900 (around £30,600) before any government incentives, based on Tesla’s launch details. Like all variants, it is claimed to be capable of the same 1MW (1000kW) charging speed as the Tesla Semi.

The mid-range dual-motor variant provides all-wheel drive, a claimed 0-60mph time of 4.5sec and the ability to tow more than 4500kg. Tesla has previously said the model will be priced from $49,900 (£38,300) before incentives. 

The top-rung car will use Tesla’s latest tri-motor Plaid EV powertrain, as used on the Tesla Model S Plaid. Projected to be priced from $69,900 (£53,700), its specs include a claimed 500-mile range, 0-60mph in 2.9sec and the ability to complete the quarter mile in just over 10sec. The towing capacity is 6350kg, Tesla boss Elon Musk said. 

Underneath, it gets adaptive air suspension with an adjustable ride height. Musk has claimed the maximum height will be 16in, with the ability to be adjusted up and down by 4in. 

The load bay is a Ford F-150-rivalling 6.5ft long and features a raisable cover. Tesla claims over 2800 litres of lockable storage space including the covered load bay (dubbed the ‘vault’), as well as space in the ‘frunk’ and sail pillars. 

The Cybertruck can seat up to six adults inside. Its minimalist interior features a dashboard dominated by a 17in tablet-style touchscreen.

However, precise specifications are still to be officially confirmed, as have the prospects for sales in mainland European and the UK. 

At launch, the Cybertruck was available to reserve for US customers for a $100 (£77) fully refundable deposit – with no guarantee that these reservations would be converted into sales. Musk claimed shortly after the pick-up’s unveiling that 200,000 people had placed a deposit.