CNN did the math. Tesla (NASDAQ: TSLA) sold between 5,000 and 6,000 Cybertrucks in the second quarter. In late 2023, there were almost two million preorders of Tesla’s latest vehicle. A lot went wrong, but much of it can be fixed.
The Cybertruck had several recalls, and Tesla took a beating in social media for the poor quality of the vehicle. There were rumors Tesla was blocking Cybertruck trade-ins. There is scant evidence that is true. Nevertheless it further tarnished the truck’s image.
Elon Musk’s relationship with Donald Trump and Musk’s government expense slashing DOGE battered his image. (He spent weeks away from his Tesla duties.) People picketed Tesla dealers and some cars were damaged by vandals.
The Cybertruck had an entry price of $72,000 with AWD. The Cyberbeast still has a sticker of nearly $100,000. Its major competitor is probably the Ford (NYSE: F) F-150 Lightning. The Ford full sized EV pickup was priced nearly $10,000 lower than the Tesla. The Cybertruck has to have a $60,000 price point, even if Tesla loses tens of millions of dollars in the process. If this works, it will get that money back in future sales at a high price point. It can’t charge that price point today.
What can Tesla do to get Cybertrucks off its lots?
First, incentives. Tesla needs to offer its Full Self Driving feature for free. The price is currently $8,000 a year. The cost to Tesla of delivering the service to one more vehicle is negligible.
Second, and this may be the hardest, Cybertrucks need to be delivered without a single reason for a recall. In other words, the manufacturing has to be perfect. If there is a recall, Tesla needs to write each customer a check for the inconvenience.
Next, Tesla has to market the Cybertruck as a full sized pick up. Although there is a section of Tesla’s site that does so, the Cybertruck is still considered a future-looking curiosity.
Finally, Elon Musk must talk about the Cybertruck more often. Today, most of his comments regarding Tesla are about its Robotaxi and that it is the future of Tesla. He needs to spend some time on Tesla’s present.
The post Tesla Sells Only 2,000 Cybertrucks A Month, But That Can Be Fixed appeared first on 24/7 Wall St..
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Author: Douglas A. McIntyre
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