Cybertruck now priced starting at $75,000

[DwightFrye]

Sure the whole Cybertuck announcement and delays were a fiasco. But it appears that situation is more important as a talking point for those who love to bash Tesla than an important problem for Tesla and/or the people who are waiting to buy one.

Tesla's bread and butter are the Model 3 and Model Y. That's where the financial, manufacturing capability and engineering resources were being focused for the last 3 years. The Cybertruck was simply a "nice to have" but not critical part of Tesla's lineup.

If Tesla ends up being just another Ford or GM in the automotive world, unless you are just talking about the sheer number of their vehicles sold as compared to those companies, being another Ford or GM would be seen as a massive failure. Low profits ? Poor quality and engineering ? Excessive and frequent recalls ? Unfunded pension liabilities ? Aging, obsolete infrastructure ? A mediocre engineering and design staff ? A dealer network and advertising budget that drain huge amounts of cash from the bottom line ?

I sure hope not. A better situation will be if competition with Tesla causes the legacy automakers to stop acting like it's 1960.

 

[y_p_w]

There’s a weird resurgence for them because of their rarity. I’ve heard of people restoring them now.

They were iconic from Dark Angel. It’s also got that weird spelling (Aztek).

 

[alarmguy]

Sure the whole Cybertuck announcement and delays were a fiasco. But it appears that situation is more important as a talking point for those who love to bash Tesla than an important problem for Tesla and/or the people who are waiting to buy one.

Tesla's bread and butter are the Model 3 and Model Y. That's where the financial, manufacturing capability and engineering resources were being focused for the last 3 years. The Cybertruck was simply a "nice to have" but not critical part of Tesla's lineup.

If Tesla ends up being just another Ford or GM in the automotive world, unless you are just talking about the sheer number of their vehicles sold as compared to those companies, being another Ford or GM would be seen as a massive failure. Low profits ? Poor quality and engineering ? Excessive and frequent recalls ? Unfunded pension liabilities ? Aging, obsolete infrastructure ? A mediocre engineering and design staff ? A dealer network and advertising budget that drain huge amounts of cash from the bottom line ?

I sure hope not. A better situation will be if competition with Tesla causes the legacy automakers to stop acting like it's 1960.

*LOL* GM #1 selling vehicle for 90 years except one year. Tesla doesnt have a lineup yet. Let me know in 40 years.

 

[Torrid]

They were iconic from Dark Angel. It’s also got that weird spelling (Aztek).

I blame Walter White.

 

[PandaBear]

Nothing. With the average American worker earning $60K/yr, that kind of pricing places this product outside of what the average person can afford.

Let's back up a few decades and recognize that in 1990, a full size pickup truck with an injected, reliable and capable inline six used to be under $10K. While the ave American worker made just over $30K per year.

The Cybertruck is a unique and interesting product, and in capable large battery form, will likely be North of $100K.

Put another way, a sensible 5%, 48 month loan on a $100K pickup truck is $2300/month. Or about 75% of the average workers take home pay.

I'm guessing purchasers will mortgage the thing. Also insurance is going to be insane on such an expensive truck.

People making 60K aren't the target customers of 100K truck or 80K cybertruck, or even a Tesla Model 3, at least not new ones.

 

[Torrid]

People making 60K aren't the target customers of 100K truck or 80K cybertruck, or even a Tesla Model 3, at least not new ones.

I just don't understand how $100k vehicles sell in droves. Then again as we see time and time again, many don't make sound financial decisions and basic math from respected financial planning says you should make $250k a year to comfortably afford one. I sure wouldn't spend that much on 1 car. I didn't spend that combined on 2 cars.

 

[PandaBear]

I just don't understand how $100k vehicles sell in droves. Then again as we see time and time again, many don't make sound financial decisions and basic math from respected financial planning says you should make $250k a year to comfortably afford one. I sure wouldn't spend that much on 1 car. I didn't spend that combined on 2 cars.

People are not rational when they buy toys, especially when it is a very rare one that catches a lot of attention. Nobody buy Mercedes because they are cheap and practical, they buy them because they make you look rich and fashionable, and envy of others.

I'm not buying that either but then again the most expensive car I bought was a 33k Lexus, and usually Prius would be the ones I buy and drive.

 

[Torrid]

People are not rational when they buy toys, especially when it is a very rare one that catches a lot of attention. Nobody buy Mercedes because they are cheap and practical, they buy them because they make you look rich and fashionable, and envy of others.

I'm not buying that either but then again the most expensive car I bought was a 33k Lexus, and usually Prius would be the ones I buy and drive.

I think I really notice them because when I increased my income I made sure not to follow with my car purchases. Luckily I found that I like small practical performance cars. I think if I was still buying trucks that I'd have no choice but to pay more for it as those prices seem to be going up so much.

At the end of the day all I can see is depreciation. We're likely not going to keep the cars we have now forever in most cases. My wife mentioned interest in a Model X, but I can't see having a payment that large on a vehicle that will lose more than the initial purchase of her current car over 10 years. It's a hard pill to swallow. I think once prices hit $60k+ that the depreciation hit on a longterm owned car ramps up to an undesired level without much gain. That's not to say I wouldn't jump on a "gotta have it" car above that if I just fell in love, but that would take something pretty extreme. Audi RS3 getting a hatch version in the US would be an instant buy at a stupid $73k with the option level I want looking at the current sedan.

 

[edhackett]

With the average American worker earning $60K/yr, that kind of pricing places this product outside of what the average person can afford.

There are 37 states where the median household income is less than $75,000/yr.

Ed

 

[Torrid]

There are 37 states where the median household income is less than $75,000/yr.

Ed

For sure. I doubt people in the median range are buying them though. For it to be the median, there's plenty above and below this.

 

[y_p_w]

For sure. I doubt people in the median range are buying them though. For it to be the median, there's plenty above and below this.

Some are tax write offs. Don’t know how that works though.

 

[Torrid]

Some are tax write offs. Don’t know how that works though.

Yeah the business expense. As long as it weighs 6,000lbs it meets the highest possible deductions.

 

[DwightFrye]

*LOL* GM #1 selling vehicle for 90 years except one year. Tesla doesnt have a lineup yet. Let me know in 40 years.

I'm glad I provide your daily levity. You overlook what Tesla is as a corporation and what they will be in another 10 years with a high degree of possibility. Tesla and Elon's plan is to not only be selling EV's and to be the best seller(s) in that category, but to have enormous amounts of cash coming in at very high margins for all of their other products besides their cars.

It doesn't matter what GM did for the past 90 years. GM and their buddies at Ford continue to be teetering on the brink of needing another government bailout. I don't know that they will be around in another 40 years.

Sure it will take many, many years until EV's even make up 50% of new vehicles sold, and government mandates when the electrical grid won't be ready for it will have to be re-thought. For 100+ year old vehicle manufacturers that don't have much in the way of capital to invest in new technology, we'll see how well they fare compared to a manufacturer that is not only well capitalized but has been and will likely continue to be many years ahead of their competition.

 

[demarpaint]

*LOL* GM #1 selling vehicle for 90 years except one year. Tesla doesnt have a lineup yet. Let me know in 40 years.

You're right. From what I can see here is Elon isn't doing as well in the northeast as he is in CA, not even close. In order for Elon to dominate the world, the grid has to be able to sustain it, it's a long way off. I wouldn't count GM and Toyota out. My bet is Toyota comes out with some more nice hybrids, for people who don't want to wait on the grid, and then ultimately an EV that is as good or better than anything Elon will be offering. Just look at Elon's vehicles fit and finish, they tell the story. Toyota is years ahead of Elon in that department, as is GM. Then there are people like myself who liked Elon, and don't now. As a result will they won't do business with him or do business elsewhere. Time will tell, but I wouldn't be counting any of the major ICE automakers out yet.

 

[PimTac]

You overlook what Tesla is as a corporation and what they will be in another 10 years with a high degree of possibility.

“It's tough to make predictions, especially about the future.”

Yogi Berra

 

[alarmguy]

“It's tough to make predictions, especially about the future.”

Yogi Berra

And … predictions = speculation

 

[JeffKeryk]

Tesla will be belly up any day now. They will never make a profit on those stupid EVs. Wait for the big boys to get in.

Tesla will collapse before the Model S is produced. Manufacturing inexperience will doom the Model S and destroy the company.

The Model 3 was impossible, couldn’t be produced at the promised price, and would be doomed by various “Tesla killers” before its arrival. The Bolt will beat it. The Tesla Model 3 is vaporware, fake, a con, a stunt, a magic trick and investor scam. The Model 3 will never be manufactured.

Gotta love those predictions.... All good.

 

[fdcg27]

The question isn't whether this hideous monstrosity will sell in decent volume at high average prices and margins.
It will.
It isn't much of a truck, but most half ton buyers don't need much of a truck for the way they use one and this thing is a fashion statement in a way that nothing from Ford, GM or Toyota ever will be.
I would have agreed with all of the naysayers five years ago about the dismal future of Tesla. In the intervening period, Tesla has blossomed into a volume producer of high margin vehicles.
Tesla isn't going away and so far the incumbent big players in the industry aren't showing any real ability to produce compelling products in the growing EV space while Tesla has attracted many higher income luxury car buyers away from the established prestige players. You see a lot of prosperous younger people who would once have considered a 3 series the gold standard driving Model 3s instead.
Worst case scenario for Tesla as it is now would be a sale to a private equity group at huge profit to all shareholders.

 

[bullwinkle]

The biggest benefit from the Cybertruck will be for Rivian-their trucks (& vans, lots of AMZN ones here) look NORMAL compared to the goofy (IMO) Tesla.

 

[JeffKeryk]

The biggest benefit from the Cybertruck will be for Rivian-their trucks (& vans, lots of AMZN ones here) look NORMAL compared to the goofy (IMO) Tesla.

Your "NORMAL compared" point is well taken. Tesla is not trying to be like anyone else. Leaders take chances and by definition, do not follow. Will the Cybertruk be a success or a flop? Time will tell. One thing is for sure, the "big guys" better hope so as trucks are their bread and butter. I bet they are shaking in their boots. 1.9M reservations?