Tesla’s Cybertruck turned a profit in less than a year. This is a big deal for Elon Musk as he enters the pickup truck market. Making Cybertruck trims more affordable remains important to long-term success.
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Tesla’s Cybertruck is turning a profit less than a year after its first delivery, the company said in an earnings call Wednesday.
Production increases also appear to be on track, with the company reporting that Cybertruck production at its Texas Gigafactory is increasing sequentially.
Returning to profitability in less than a year is a big challenge for Elon Musk, who is entering the bloody sport of selling pickup trucks in the United States.
The first Cybertruck was delivered in November 2023 at the highly anticipated electric truck launch event. Initial response from customers who ordered the Cybertruck was lukewarm, with many disappointed by the higher-than-promised price.
Tesla recently began taking orders for the $74,490 all-wheel-drive version, but the revenue included in its third-quarter results would have been for the more expensive Foundation Series, which was initially the only model available. is. Prices for this trim level range from $99,990 to $119,990.
Starting at this high price point allowed Cybertruck to achieve its first profitable quarter, likely increasing Tesla’s overall margins. Still, the introduction of more affordable trims is critical to the truck’s continued success.
Demand for large, expensive electric SUVs is declining as wealthy early adopters exit the market. The overall slowdown in EV demand finally caught up with Tesla in the first half of this year, which saw its sales decline by two-quarters.
