Could the Tesla Cybertruck rival the original Mustang for the most desirable vehicle in its maiden year? It looks like it’s on the way as CybertruckOwnersClub.com tabulated Cybertruck orders based on reservation numbers. They are saying 532,048 reservations have been recorded for Cybertrucks. At $100 per reservation that’s over $53 million in Tesla’s petty cash since November. Wow!
When the Biscuit last visited the subject of Cybertruck reservations it was after Tesla CEO and founder Elon Musk tweeted that Tesla had received over 250,000 orders. That was within the first week of its entertaining reveal at the Tesla headquarters in El Segundo, California. The reveal was November 21. Breaking it down Tesla is getting on average 3,357 orders a day.
Before it can get 532,048 Cybertrucks into production there are hurdles for Tesla
There are a number of electric vehicle manufacturers rushing to get electric trucks into production as quickly as possible. Unfortunately, Tesla faces a number of problems before it can see that day come. Tesla says it will start production of the Cybertruck by the end of 2021.
That said, Tesla has already said it has no idea how it will produce the Cybertruck. That raises the question, Why wasn’t the concept designed with some intent toward how it will be made? After all, though a concept it is expected that it would be mass-produced. Otherwise, what was the point? Tesla never said this was just a pie-in-the-sky concept they were throwing out for the public to see. It’s taking reservations for the truck for goodness sakes.
The Tesla Model 3’s ramp-up to production could haunt the Cybertruck
Then there’s the other issue of Tesla’s troubled ramping up for production. The Model 3’s lead up to being produced was a mess. Delays and shifts in the release, not to mention the price increases were a black mark. It throws into question Tesla’s ability to get the production lines running at speed.
Finally, there is the complication of federal regulations; specifically pedestrian crash safety standards. There is no way it will be able to pass that test as it was shown in November. We also have our doubts that crumple zones and other crash-related requirements have been fleshed out. You must have all of the development squared away before you start banging out trucks. Can Tesla do it by the end of 2021?
At $100 per Cybertruck reservation, there isn’t much that is keeping anyone committed
At $100 per reservation, there isn’t much seriously committing anyone to purchase a Cybertruck so it is expected there will be plenty of drop-offs if and when Tesla starts rolling Cybertrucks out the door. Remember, the $100 reservation is fully refundable.
The capital needed to get the Cybertruck into production may be one reason why Musk went back on saying he didn’t need to float any more loan offerings. Just last week he went against his earlier comment by advising there would be a $2 billion stock offering coming. Maybe he figured this other way to stockpile capital for development and assembly was necessary after the great response to Tesla’s Cybertruck?
Tesla is very much on a roll right now
In any case between the rising price of Tesla stock and the overwhelming response to the Cybertruck Tesla is riding high while its Detroit counterparts scramble to catch up. The automobile industry is changing at a furious pace. Outliers like Tesla have spun the established manufacturers on their collective heads.
It makes you wonder what else Tesla has up its sleeves.