Tesla has changed its Cybertruck plan in a big way by stopping orders for the least expensive version of the electric pickup truck, which cost $61,000. Instead, the car company is now taking orders for a more expensive $100,000 version that can be delivered as early as this month. Investors and Tesla fans are both interested in this change, since the Cybertruck is one of the most-anticipated cars in Tesla’s fleet.
People’s desire for the Cybertruck has been closely watched, especially since Elon Musk, CEO of Tesla, has put a lot of money into its development. Musk wants to make 200,000 Cybertrucks every year, which is a big goal. The shift in focus to the more expensive model is likely a planned move to make the early stages of production more profitable. But this move also makes me wonder about the demand for the Cybertruck in general, especially among people who were trying to buy the cheaper version.
Revving up for exclusivity: Only the $100k Cybertruck is on the road now.
Musk just recently said in October that Tesla had gotten 1 million reservations for the Cybertruck, which shows how popular the vehicle is. But some customers are worried about the prices going up and the shorter-than-expected driving ranges. This has made potential buyers hesitant to buy. The fact that orders for the cheaper model are no longer being taken could mean that demand for the more expensive model is higher than expected, or it could mean that Tesla is controlling its production capacity to focus on the more profitable model.
Analysts in the field have said different things about Tesla’s choice. Analyst Sam Abuelsamid at Guidehouse Insights said that the change could mean that demand for the Cybertruck isn’t as strong as the number of reservations initially suggested. “It shows that demand is a lot less than a million trucks,” Abuelsamid told Reuters, pointing out that it might be hard for Tesla to keep up high sales numbers, especially at the $100,000 price point.
Luxury in demand: Tesla’s premium Cybertruck takes center stage.
In spite of these worries, the Cybertruck has done very well in the sales market, especially among expensive vehicles. Data from Cox Automotive shows that Tesla sold almost 4,800 Cybertrucks in July, which was its best month ever and made it the best-selling car in the U.S. that costs more than $100,000. It’s clear that there is a big market for high-end electric cars because the Cybertruck has sold over 16,000 units therefore far. A spokesperson from Cox Automotive did say, though, that it will be hard for Tesla to keep up this high number of sales at such a high price going forward.
In the end, Tesla’s choice to stop taking orders for the cheapest Cybertruck and focus on the $100,000 model is a smart one that might pay off right away. But it also makes me wonder if people will still want the car in the future and if Tesla can keep selling so many at such a high price. It will be important to keep an eye on how buyer demand changes and how Tesla adapts its production strategy to meet the needs of its wide range of customers as the Cybertruck continues to be released.