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Tesla CEO Elon Musk issued a warning Wednesday about thesoon - to - be delivered Cybertruckthat might voice familiar to those who tight followed the company ’s Model 3 “ production infernal region ” era .
The gist ? Scaling product of a vehicle like the Cybertruck is strong and it ’s going to take awhile before it ’s profitable . Musk estimated that it will take about 18 month until the Cybertruck is cash stream confirming . At some point in 2025 — and once Tesla has navigate these production challenges — the company will be making “ roughly ” 250,000 Cybertrucks a year , Musk predicted .
pilot burner output of the Cybertruck has start at the company ’s Giga Texas factory near Austin . Musk said Wednesday that the first Cybertrucks will be delivered at a November 30 outcome at the factory .
He also substantiate that there are more than 1 million refundable reservation for the Cybertruck , which was first unveil in 2019 .
“ I do want to emphasize that there will be tremendous challenges in reaching volume production with the Cybertruck and then seduce the Cybertruck cashflow positive — this is but normal , ” Musk said during Wednesday ’s third - quarter remuneration call , later on underline that he believes this is potentially the company ’s good product ever . “ When you ’ve get a product with a lot of new technology or any firebrand raw vehicle program , peculiarly one that is as different and sophisticated as the Cybertruck , you will have problems proportionate to how many new things you ’re trying to solve at scale . ”
He later tot : “ It is cash in one’s chips to require immense workplace to pass on volume production , and be cashflow positivistic , at a price that the great unwashed can give . ”
The Cybertruck has alreadydinged Tesla ’s earnings . The troupe report Wednesday net income of $ 1.85 billion in the third quarter , a 44 % drop from the same twelvemonth - ago period due to shrinking security deposit triggered by repeated price cuts of its EVs as well as increase operating disbursement on its Cybertruck , AI and other R&D programs . Tesla ’s operating expense were $ 2.4 billion in the third quarter , a 43 % swelling from the same period last year .
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That meanwhile in Cybertruck lucrativeness present a challenge for Tesla .
The company continues to grow — aka drop more money — in term of footprint , the great unwashed and programs like Cybertruck . And while it ’s still the EV sales loss leader in North America by a wide tolerance , the company ’s scheme of reducing price has steadily reduced its perimeter . Industry spectator have interest that Tesla and other auto maker will have to continue to cut prices due to some indications of softening demand for EVs .
Meanwhile , there are n’t any other new Tesla modeling expected in the near term , which could further drag down net .
And while itsfree cash flowdwindled to $ 848 million in the third quarter , Tesla is sitting on a $ 26 billion chunk of cash , Johnny Cash combining weight and investments , leaving it muckle of wiggle way . Whether shareholders will remain patient is undecipherable .
