Africa-Press – Mozambique. <\/strong><\/span>Tesla’s (TSLA.O) pricier-than-expected Cybertruck pickup, which offers driving ranges that fell well short of what CEO Elon Musk had promised, has deeply disappointed some but fascinated others with its futuristic, SUV-like feel.<\/p>\nThe Cybertruck, two years behind schedule, enters a hot pickup truck market to compete with the likes of Ford’s (F.N) F150 Lightning, Rivian Automotive’s (RIVN.O) R1T and General Motors’ (GM.N) Hummer EV.<\/p>\n
Reddit co-founder Alexis Ohanian, who was among the first dozen customers to pick up the vehicle on Thursday, said the Cybertruck drives and feels like Tesla’s Model X sport utility vehicle.<\/p>\n
“Initial feeling about this vehicle – smooth, drives a lot like my Model X. It is big but not unwieldy,” Ohanian said as he live-streamed his first drive of the Cybertruck on social media platform X. He said he’d be the “coolest dad” picking up his kid at school.<\/p>\n
Starting at $60,990, the Cybertruck is over 50% more expensive than what CEO Elon Musk had touted in 2019. That may narrow the appeal of the vehicle. Tesla’s stock is down over 2% since before the launch.<\/p>\n
Among those disappointed is Texas-based financial services executive Christian Cook, who had booked a Cybertruck in 2019 after Musk promised a cheaper pickup that travels farther on a single charge.<\/p>\n
“The truck pricing and range is a huge let down,” Cook, who drives a Model 3 and told Reuters he had made certain financial decisions based on his plans to buy a Cybertruck. “My respect for Musk has taken a huge hit. My loyalty to Tesla has taken a huge hit.”<\/p>\n
CFRA analyst Garrett Nelson said the steep price tag will lead to customers cancelling reservations and expects Tesla to adjust the pricing based on demand going ahead.<\/p>\n
The Cybertruck, made of shiny, bullet-proof stainless steel and inspired from a car-turned-submarine from a James Bond movie, is likely to uplift Tesla’s brand that has been dented from steep price cuts to boost demand, according to analysts and branding experts.<\/p>\n
“The Cybertruck gets a lot of attention. It brings Tesla back top of mind,” said Spencer Imel, a partner at consumer insights firm Langston.<\/p>\n
“But we don’t see it helping Tesla gain ground in terms of becoming a mass market brand and competing with brands like Ford that are serving the everyday car buyer,” he said.<\/p>\n
Indeed, the electric pickup’s price and longer wait time for significant financial payoff left analysts concerned.<\/p>\n
Musk’s personal ability to build the Tesla brand has also been questioned this week after a live interview in which he cursed out advertisers who left his X social media platform, formerly known as Twitter, over antisemitic material.<\/p>\n
That was creating nervousness among investors and some consumers and could be drag on Tesla’s appeal, said Allen Adamson, co-founder of brand and marketing consultancy Metaforce.<\/p>\n
“Many of Tesla’s early adopters who bought into the dream of a sustainable future are being kind of rudely woken up,” by some of the “strange things” he has done, turning him from a “rebel” into a “misguided person” for some people, said JP Kuehlwein, an adjunct professor of marketing at Columbia University Business School.<\/p>\n
Cybertruck will not do much for Tesla’s financials next year, analysts said. Bernstein forecast 250 deliveries this year and 75,000 for next year, saying both “may be ambitious”.<\/p>\n
Musk has said Tesla was likely to reach a production rate of roughly 250,000 Cybertrucks a year in 2025.<\/p>\n
The company has repeatedly warned that it would face significant challenges in ramping the product and becoming free cash flow positive – likely not until mid-2025 – which could negatively impact profitability.<\/p>\n
A brand refresh will be critical for Tesla, especially at a time when the company is battling softening electric-vehicle demand as well as rising competition.<\/p>\n
“Tesla has a product problem – i.e., an older line-up that does not address enough of the market, and has no new mass market offerings until likely late 2025,” Bernstein analysts added.<\/p>\n
For More News And Analysis About Mozambique<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Chavi Mehta Africa-Press – Mozambique. Tesla’s (TSLA.O) pricier-than-expected Cybertruck pickup, which offers driving ranges that fell well short of what CEO Elon Musk had promised, has deeply disappointed some but fascinated others with its futuristic, SUV-like feel. The Cybertruck, two years behind schedule, enters a hot pickup truck market to compete with the likes of […]<\/p>\n","protected":false},"author":84,"featured_media":51474,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,9],"tags":[233,281,283],"class_list":["post-51475","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-miscellaneous","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"\n
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