With much ballyhoo, Tesla posted a photo of the first production Cybertruck on CEO Elon Musk’s dedicated marketing channel, Twitter, this weekend.
Musk previously said production would begin this summer, so the event is timely. No information was provided about how quickly production would continue, or when the first customer deliveries would be made.
Tesla has claimed 1.6 million pre-orders for the truck, and with the company’s earnings expected to be lower this year as a result of competition and price cuts, fulfilling some of those orders will likely help bolster the share price. Tesla stock was up about 2% in Monday morning trading on the announcement.
In an analyst call last week, Musk said, “We’re in the final lap for Cybertruck.” Production is said will begin in earnest before the end of 2023, with likely first customer deliveries early in 2024. The Cybertruck was originally unveiled in 2019 with a 2021 production target.
Potential battery constraint
The Cybertruck is designed to use Tesla’s advanced model 4680 battery pack. However, it’s unclear if production of those batteries is sufficient to enable mass-production of the Cybertruck. CEO Musk has said that 4680 battery production is growing quickly and there will be an adequate supply.
The new battery is still a lithium-ion battery, but because of its form factor, will enable faster charging rates and better heat dissipation. The 4680 is also larger and claims more energy density than existing batteries and is expected to be less expensive to produce. The 4680 batteries are rumored to be designed into the Cybertruck, Tesla Semi, and Tesla Roadster, and may be used in existing Tesla models after an expected upcoming design refresh.
The 4680 battery was announced in 2020, but production has been stymied. Tesla battery partner Panasonic recently announced it was delaying mass production of the 4680 battery until mid-2024, in order to implement improvements to the batteries. However, Tesla is manufacturing the batteries at the same Gigafactory in Texas that produced the Cybertruck.
Pricing has not yet been announced
Originally, Tesla stated the Cybertruck would start under $40,000. However, that claim was later removed from Tesla’s website, and no new pricing has been announced.
Information on pricing is expected later this year, and Tesla will certainly be looking at pricing from Ford (which cut prices on the F-150 Lightning on Monday), General Motors, Stellantis, Rivian and other EV truck makers to make the Cybertruck competitive in the market.