Tesla's (TSLA -0.05%) latest electric vehicle, its futuristic stainless-steel Cybertruck, has left Wall Street and investors scratching their heads about its viability, but consumers appear to love it, with pre-orders already pouring in.
Late last week, in what some considered a bizarre display at Tesla's design studio outside Los Angeles, Elon Musk unveiled the much-hyped pickup that he had been teasing for weeks. The Cybertruck, which looks like something out of the movie Blade Runner, gets 250 million miles on a single charge and starts at just $39,900. Add any of the perks like dual engines and this new electric vehicle gets much pricier. The other two models, a dual-motor one and a tri-motor version, are priced at $49,900 and $69,900, respectively.
Musk took to Twitter over the weekend to give an update on how pre-orders were faring in the days after the Cybertruck's debut. On Saturday (Nov. 22) Tesla sold 146,000 Cybertrucks with 42% opting for the dual-engine model, 41% for the three-engine model, and 17% for the entry-level Cybertruck. That figure got updated by Musk on Sunday (Nov. 23) in a simple Tweet "187K." Analysts typically use pre-orders of Tesla vehicles to get a sense of how demand will fare. With customers required to put $100 down, Tesla made more than $18 million. Those deposits are refundable and much lower than Tesla usually requires. Production for the Cybertruck is slated to kick off at the end of 2021, with the tri-motor version going into production in 2022.
Image source: Tesla.
Investors aren't as impressed as superfans
While fans couldn't seem to get enough of the Cybertruck, industry watchers and investors were much more skeptical, causing the stock to end last week on a down note. Vehicle reviewers and critics have been quick to call the Cybertruck a concept rather than a viable pickup truck for the electric-car maker. They question if it will ever be legal on U.S. streets and roadways, and predicted that the Cybertruck that hits the market will look different than the one Musk unveiled.
Critics point to everything from the missing mirrors and wipers to wheels and tires that don't look production viable. With a steering wheel better suited for a race car than a passenger vehicle, it's also not clear if the interior will get a bit of an overhaul as well.
Some Wall Street analysts also expressed concern about the impact the Cybertruck will have on the Model Y, Tesla's electric crossover that's expected to begin production in 2020. Production in China and Europe is slated for early 2021. It gives drivers 300 miles on a single charge, has 66 cubic feet of cargo space, and comes in all-wheel-drive with a dual motor. It will be priced starting at $39,000. When Tesla announced the Model Y, interest in that launch was overshadowed by worries that it would hurt sales of the Model 3 and that same concern was raised with the Model Y and the Cybertruck.
Competition looms large
Then there's competition from vehicle manufacturers that are working on their own electric trucks. Rivian, an electric-truck start-up out of Plymouth, Michigan, that counts Amazon.com and Ford (F -0.92%) as backers, is coming out with its own electric trucks next year that, while priced higher than the entry-level Cybertruck, have a much more familiar design to pickup truck owners. They are sleek and shiny, but they don't look like something from a movie about the end of the world. Ford, the granddaddy of the pickup truck, is expected to launch the electric F-150 in 2021, while GM (GM -2.25%) is rumored to be working on its own electric pickup truck.
Investors clearly weren't impressed with the Cybertruck and Wall Street analysts are mixed about the impact it will have on Tesla's earnings, but fans of the electric-vehicle maker say critics are missing the bigger picture. They are hung up on design and are ignoring the big news, the $39,900 price tag. That's a commendable feat given that EVs have long been priced higher, and a testament to Tesla's improving manufacturing. But everyone acknowledges that the Cybertruck's success will depend on what comes rolling off the production line when it is ready for its prime-time debut.
