Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Tesla's Cybertruck feels like an SUV; price, lower driving range upset some

Published Dec 01, 2023 09:27AM ET Updated Dec 01, 2023 08:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of a Tesla electric vehicle is placed on a car outside a dealership in Drogenbos, Belgium November 25, 2023. REUTERS/Yves Herman/File Photo
 
TSLA
+0.55%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
RIVN
+1.46%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GM
-0.41%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
F
-0.20%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Abhirup Roy, Hyunjoo Jin and Chavi Mehta

SAN FRANCISCO (Reuters) -Tesla's pricier-than-expected Cybertruck pickup, which offers driving ranges that fell well short of what CEO Elon Musk had promised, has deeply disappointed some but fascinated others with its futuristic, SUV-like feel.

The Cybertruck, two years behind schedule, enters a hot pickup truck market to compete with the likes of Ford (NYSE:F)'s F150 Lightning, Rivian (NASDAQ:RIVN) Automotive's R1T and General Motors (NYSE:GM)' Hummer EV.

Reddit co-founder Alexis Ohanian, who was among the first dozen customers to pick up the vehicle on Thursday, said the Cybertruck drives and feels like Tesla (NASDAQ:TSLA)'s Model X sport utility vehicle.

"Initial feeling about this vehicle - smooth, drives a lot like my Model X. It is big but not unwieldy," Ohanian said as he live-streamed his first drive of the Cybertruck on social media platform X. He said he'd be the "coolest dad" picking up his kid at school.

Starting at $60,990, the Cybertruck is over 50% more expensive than what CEO Elon Musk had touted in 2019. That may narrow the appeal of the vehicle. Tesla's stock is down over 2% since before the launch.

Among those disappointed is Texas-based financial services executive Christian Cook, who had booked a Cybertruck in 2019 after Musk promised a cheaper pickup that travels farther on a single charge.

"The truck pricing and range is a huge let down," Cook, who drives a Model 3 and told Reuters he had made certain financial decisions based on his plans to buy a Cybertruck. "My respect for Musk has taken a huge hit. My loyalty to Tesla has taken a huge hit."

CFRA analyst Garrett Nelson said the steep price tag will lead to customers cancelling reservations and expects Tesla to adjust the pricing based on demand going ahead.

The Cybertruck, made of shiny, bullet-proof stainless steel and inspired from a car-turned-submarine from a James Bond movie, is likely to uplift Tesla's brand that has been dented from steep price cuts to boost demand, according to analysts and branding experts.

"The Cybertruck gets a lot of attention. It brings Tesla back top of mind," said Spencer Imel, a partner at consumer insights firm Langston.

"But we don't see it helping Tesla gain ground in terms of becoming a mass market brand and competing with brands like Ford that are serving the everyday car buyer," he said.

Indeed, the electric pickup's price and longer wait time for significant financial payoff left analysts concerned.

Musk's personal ability to build the Tesla brand has also been questioned this week after a live interview in which he cursed out advertisers who left his X social media platform, formerly known as Twitter, over antisemitic material.

That was creating nervousness among investors and some consumers and could be drag on Tesla's appeal, said Allen Adamson, co-founder of brand and marketing consultancy Metaforce.

"Many of Tesla's early adopters who bought into the dream of a sustainable future are being kind of rudely woken up," by some of the "strange things" he has done, turning him from a "rebel" into a "misguided person" for some people, said JP Kuehlwein, an adjunct professor of marketing at Columbia University Business School.

Cybertruck will not do much for Tesla's financials next year, analysts said. Bernstein forecast 250 deliveries this year and 75,000 for next year, saying both "may be ambitious".

Musk has said Tesla was likely to reach a production rate of roughly 250,000 Cybertrucks a year in 2025.

The company has repeatedly warned that it would face significant challenges in ramping the product and becoming free cash flow positive - likely not until mid-2025 - which could negatively impact profitability.

A brand refresh will be critical for Tesla, especially at a time when the company is battling softening electric-vehicle demand as well as rising competition.

"Tesla has a product problem - i.e., an older line-up that does not address enough of the market, and has no new mass market offerings until likely late 2025," Bernstein analysts added.

Tesla's Cybertruck feels like an SUV; price, lower driving range upset some
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Ge K
Ge K Dec 03, 2023 8:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
People if you dont like it you dont have to buy it. Enough already with the back and forth it’s getting really old. And yes Elon is the man.
Michael Kavsak
Michael Kavsak Dec 03, 2023 3:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
50% more expensive and 50% less range than promised. The whole point of this truck was to be a better truck option than the competition and more affordable. Complete miss. I’m 15k in line and very disappointed I won’t be getting it.
Darren Hunt
Darren Hunt Dec 01, 2023 9:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wow , this article is incredibly negative and misleading . Elon says go F@%& yourself
SF 2021
SF 2021 Dec 01, 2023 6:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Haters! The cyber truck is bad ass and super cool! ELON attacks the media, the media attacks back with hit pieces such as this one. To be expected after Elon told the media establishment to F off
Randy Randy
randy00 Dec 01, 2023 5:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Silly looks and bulletproof - just what I need.
João Moreira
João Moreira Dec 01, 2023 11:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't agree that Cibertruck doesn't move the financial needle for Tesla: it was resource intensive project for more than 4 years and it will only reach full speed in another 2 years!
Lemon Lime
Lemon Lime Dec 01, 2023 10:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Truck looks a cardboard science project.
Paulo Lima
Paulo Lima Dec 01, 2023 10:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That is the point! It is not about who has the cooler new year model car, it is not even trying to win a design contest, but being something you will hold through the years while being robust and much more capable.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email