Editor’s note: The headline of this story has been updated to reflect the correct figure for Elon Musk’s most recent estimate for Cybertruck production: 200,000 units.
Tesla, Inc. TSLA CEO Elon Musk said in his recent appearance on the “The Joe Rogan Experience” that the EV maker is aiming to produce 200,000 units of Cybertruck at the point of production, or maybe a little more.
What Happened: Commenting on the estimate, GLJ Research’s Gordon Johnson said the number suggests a downward adjustment of the production guidance issued earlier.
On the third-quarter earnings call, in response to an investor question regarding the number of Cybertrucks Tesla hopes to produce in 2024, Musk said, “I think we will end up with roughly 0.25 million Cybertrucks a year.”
The billionaire, however, cautioned that the said output rate will probably be reached in 2025.
Johnson questioned the variance between the number provided on the podcast that was aired on Tuesday and the one mentioned on the earnings call on Oct. 18. “Is this an official guidance cut, or a slip?,” he asked tagging Musk in a post on X, formerly Twitter.
See Also: Best Electric Vehicle Stocks
Why It’s Important: Musk has made no bones about the difficulty involved in the production ramp-up of the Cybertruck. On the Oct. 18 earnings call, he said, “The ramp is going to be extremely difficult.”
“If you want to do something radical and innovative and something really special like the Cybertruck, it is extremely difficult because there’s nothing to copy,” he added.
On Rogan’s show, Musk repeated his view. “Manufacturing is much, much harder than the design,” he said. The Tesla chief also noted that he was satisfied with the technology of the Cybertruck but is more worried about the cost as it has to be made affordable for buyers.
Demand for the vehicle has remained firm, going by the reservation numbers from a crowd-sourced Cybertruck reservation tracker.
Net reservations currently stand at 2.058 million but all reservations may not graduate to firm orders.
Future Fund’s Gary Black expects the commercial launch of the EV to give a big push to Tesla’s volume, given the “Halo effect” it will have on the sale of the company’s other EVs.
The company has scheduled a launch event for the Cybertruck on Nov. 30.
Tesla ended Tuesday’s session up 1.76% to $200.84, according to Benzinga Pro data.
Photo courtesy: Tesla
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
