Starting at $60,990, Tesla’s (TSLA.O) much-anticipated Cybertruck will cost more than 50% more than what CEO Elon Musk had claimed in 2019. Analysts predict this price point will attract affluent, discerning customers.
According to Musk, the vehicle’s design, which is based in part on a car that was converted into a submarine in the 1977 James Bond film “The Spy Who Loved Me,” is gleaming stainless steel and curved like flat planes.
Experts warn that in addition to increasing production complexity and costs, its novel body material and unusual, futuristic design could drive away traditional pickup truck purchasers who prioritize usability.
The Cybertruck, according to Musk, has “more utility than a truck” and is “faster than a sports car.” Musk has set the prices of the vehicle’s three variations between $60,990 and $99,990.
At an Austin, Texas event, he drove a Cybertruck onto a stage to applause from the audience and then gave the vehicles to roughly a dozen customers.
Regarding the truck’s design, he declared, “Finally, the future will look like the future,” showcasing a video of the Cybertruck hauling a Porsche 911 and defeating another 911 powered by gasoline in a brief race.
Tesla’s stock dropped 2% during after-hours trading, closing 1.6% lower at $240.08.
Tesla’s website displayed the vehicle’s costs, even though Musk did not disclose them during the event. The Cyberbeast, the model with the maximum performance, and the all-wheel drive trim, which starts at about $80,000, will be offered the following year.
By 2025, the most affordable rear-wheel drive model—whose starting price is projected to be around $61,000—will be accessible.
According to Jessica Caldwell, head of insights at auto research company Edmunds, “this is going to appeal to… definitely a wealthier clientele that can afford the price point and they want something that is unique and quirky.”
“That just isn’t a large segment of the population that can afford that especially where interest rates are.”
More than a million people made reservations for the Cybertruck in 2019 after Musk predicted that it would cost $40,000. These people paid $100 deposits. Even though the cost of EV raw materials was growing, he had not provided an updated price before Monday.
According to Musk, new deposits are $250 as of Thursday.
Many people are not surprised by the price, according to Paul Waatti, an analyst at AutoPacific Consulting. Prior to the event, Waatti told Reuters that a smaller audience would be ideal for the Cybertruck.
Two years behind schedule, Cybertruck joins the hot pickup truck market to take on competitors such as General Motors’ (GM.N) Hummer EV, Ford’s (F.N) F150 Lightning, and Rivian Automotive’s (RIVN.O) R1T.
The starting price of the F-150 Lightning is approximately $50,000, but the R1T from Rivian is $73,000. The price of the larger and more potent Hummer EV truck is about $96,000.
The Cybertruck, the company’s first new model in almost four years, is essential to Tesla’s standing as a producer of cutting-edge automobiles. Cybertruck is also essential for driving sales at a time when the firm is fighting growing competition and waning demand for electric vehicles (EVs), though not to the same degree as the company’s high-volume Models 3 and Y.
Last month, Musk tried to lower investor expectations for the product by pointing out production ramping issues and cautioning that it would take a year to 18 months for it to become a meaningful cash flow contributor.