First Customer Delivery Today After 4 Years Since Design Reveal
Starting Price 80 Million Won, 50% Higher Than Planned
Stainless Steel Material Key... Impact on Production and Price
Elon Musk, CEO of Tesla, began the first deliveries of his ambitious first electric pickup truck, the 'Cybertruck,' on the 30th (local time). Musk promoted it as "the biggest product launch on Earth this year."
However, due to the unique design using stainless steel material, the release was delayed by two years from the original plan, mass production is not easy, and the price is 50% higher than initially announced, leading to predictions that it may not succeed commercially.
This is why evaluations such as "there is still a long way to go" and "Cybertruck is already a 'nightmare' for Tesla" have emerged. Immediately after the launch, Tesla's stock price fell nearly 2% during the trading session.
Bulletproof Cybertruck... Musk: "Faster than a sports car"
According to CNBC and other media, Tesla held a Cybertruck launch event at its headquarters in Austin, Texas. It was an event to deliver the Cybertruck, first designed in 2019, directly to 12 customers who had pre-ordered. The delivery took place more than two years later than originally planned.
The Cybertruck unveiled that day can accelerate from 0 to 60 miles per hour (96 km/h) in 2.6 seconds. The driving range per charge is 250 miles (about 402 km) for the basic rear-wheel-drive version, 300 miles (about 483 km) for the dual motor, and 500 miles (805 km) for the tri-motor version.
The price of the Cybertruck was set at a minimum of $60,990 (about 79.35 million KRW). When the prototype was first revealed in 2019, the price was set between $39,900 and $69,900, so this represents an approximately 50% increase. According to Tesla's North American website, the rear-wheel-drive model available from 2025 will start at $60,990, while the all-wheel-drive model available from next year and the top-tier 'Cyber Beast' will start at $79,990 and $99,990, respectively.
On stage, CEO Musk introduced the Cybertruck as "a better truck than any other truck." He showed a video of the Cybertruck towing a Porsche 911 sports car and racing it, leading by a quarter mile (402 m), boasting that it is faster than a sports car. He also explained that the vehicle is made of steel, making it bulletproof, and that its windows cannot be pierced by stones.
Musk jokingly referred to the incident four years ago during the Cybertruck prototype unveiling when a metal ball was thrown at the window to test its strength, causing the glass to crack with a 'crack' sound, saying, "Let's try again." Tesla's chief designer Franz Holzhausen then threw a baseball twice instead of a metal ball, showing the windows remained intact.
CEO Musk said the Cybertruck will "change the face of the road" and that "finally, the future looks like the future."
Durable but difficult to produce... Market expectations decline, stock down 2%
The core of the Cybertruck is its stainless steel material. Musk showed great interest in this material and aimed to create a bulletproof pickup truck using it. He is known to like stainless steel so much that he plans to use it for SpaceX's Starship spacecraft.
Tesla emphasizes that the vehicle is made of sturdy and corrosion-resistant stainless steel, enhancing the car's durability. Reflecting the emphasis on stainless steel, the body has a grayish tint and a sharp, angular design unlike typical pickup trucks, attracting attention.
However, stainless steel is also Tesla's Achilles' heel. The Cybertruck's release was delayed by two years, with some deliveries expected in 2024 and others in 2025. Musk said mass production could reach 250,000 units in 2025, but foreign media view production expansion as very difficult. At the same time, the price has increased by 50% due to material and other factors.
Elon Musk, Tesla CEO, unveiling the Cybertruck prototype for the first time in November 2019 [Image source=AP Yonhap News]
The problem with stainless steel is that it is heavier and stronger than conventional materials, requiring more time and cost to shape into the vehicle body. Additionally, minor errors during production and assembly can cause large gaps between panels, necessitating precise manufacturing. There are also concerns that scratches on the vehicle surface are difficult to repair.
Musk recognized these issues during the Cybertruck's production process and has been actively seeking solutions. In August, he instructed employees to design and manufacture every part of the vehicle within a tolerance of less than 10 microns (1 micron = 1/1000 mm).
However, Musk did not deny the difficulties in producing the Cybertruck. Rather, he seemed to try to lower the heightened expectations ahead of the launch.
During the Q3 earnings conference call in mid-last month, he said, "We have dug our own grave with the Cybertruck." He added, "I want to emphasize that there will be tremendous challenges before the Cybertruck reaches mass production and generates positive cash flow," and "It will take one to one and a half years before it significantly contributes to cash flow."
Technology media The Verge evaluated, "The angular polarized truck (Cybertruck) still has a long way to go." It also noted that the event was unusually short for Tesla, with Musk quickly ending it after checking some features. Musk did not mention the price separately at this event.
Following the Cybertruck launch event, Tesla's stock price has been declining. On the day, Tesla's stock closed at $240.08, down 1.66% from the previous day. In after-hours trading, it fell nearly another 2%. Although the Cybertruck attracted attention with pre-orders exceeding 2 million units, expectations have diminished due to the higher-than-expected price and the difficulty of reducing costs through mass production.
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