Elon Musk has issued a stark warning about the soon-to-be-delivered Tesla Cybertruck.
According to the Tesla CEO, scaling production of a vehicle like the Cybertruck is hard.
He also stated that it’s going to take a while before it’s profitable.
Musk estimates that it’ll take around 18 months until the Tesla Cybertruck is cashflow positive.
It won’t be until some point in 2025 – once Tesla has navigated these production challenges – when the company will be producing “roughly” 250,000 units a year, Musk predicts.
We hate to say it, but Elon Musk has made a rod for his own back.
If you recall, Musk made it possible to place a preorder for the Cybertruck for just $100, which is totally refundable.
This means a lot of people placed orders, with varying levels of intent to actually buy.
Now the company has more than 1.9 million orders to see to.
“I do want to emphasize that there will be enormous challenges in reaching volume production with the Cybertruck and then making the Cybertruck cashflow positive – this is simply normal,” Musk said during Wednesday’s third-quarter earnings call.
However, he was quick to counteract that by saying he believes this is potentially the company’s best product ever.
“We’ve got a product with a lot of new technology or any brand new vehicle program, especially one that is as different and as advanced as the Cybertruck, you will have problems proportionate to how many new things you’re trying to solve at scale.”
“It is going to require immense work to reach volume production, and be cashflow positive, at a price that people can afford,” he later added.
On the subject of the latter, we still don’t know how much the Tesla Cybertruck is going to cost.
Back in 2019, the hotly-anticipated EV pickup was priced at $39,000.
However, it’s safe to assume that considering it’s been four years in the making, the price will have increased.
Clearly, Elon Musk aims to make it as affordable as possible, and if Tesla’s recent price cuts are anything to go by, the EV might remain at the affordable end of the price range.