Business
Tesla’s Cybertruck: Futuristic Phenom or Musk Misstep?
By Belal Awad · August 6, 2023
In brief…
- Tesla's Cybertruck, an EV pickup truck with a radical design, has generated both excitement and skepticism since its unveiling in 2019.
- Tesla promotes the Cybertruck as a game changer, but industry experts say it will be tough sledding to compete with established truck makers like Ford, GM, and Stellantis.
- The Cybertruck seats six, has unpainted stainless steel body panels, armored glass windows, and a payload capacity of up to 3,500 pounds.
- One industry analyst says Cybertruck "may appeal to a niche audience looking for a lifestyle or leisure vehicle rather than a traditional work truck."
The automotive world is abuzz with anticipation for Tesla’s Cybertruck’s expected release for sale next month. The electric pickup truck, described as both a revolutionary marvel and a potential mistake, has divided public opinion since its unveiling in 2019.
The Cybertruck, with its radical design and ambitious specifications, has been touted by Tesla CEO Elon Musk as a game-changer in the pickup market. However, some industry experts remain skeptical about its potential to compete with established heavyweights in the pickup truck sector, notably Detroit’s Big 3: Ford, GM, and Stellantis.
Industry experts say the most compelling aspect of the truck - with an expect starting list price of $50,000 - is its design. Dan Levy, Senior Autos Analyst at Barclays, told the Wall St. Journal, “The Cybertruck looks like it was intentionally designed to look like nothing else on the market. It’s a provocative vehicle. It’s radical, unprecedented.”
As Musk put it, “For a hundred years, trucks have been basically the same. We want to try something different.”
Along with its eye-catching design, the Cybertruck boasts impressive features. The vehicle, which seats six, has unpainted stainless steel body panels, armored glass windows, and a payload capacity of up to 3,500 pounds, surpassing those of Ford’s F-150 Lightning, Rivian’s R1T, and GM’s Silverado EV.
The Cybertruck’s success, however, is far from guaranteed in the competitive pickup sector.
“You have three players in Ford, GM and Stellantis that account for over 90% of the market.” said Levy, adding that these companies have dominated the highly competitive market for non-electric pickups for decades, and their customers are known for their brand loyalty.
According to Mark Wakefield, Automotive Managing Director at Alixpartners, “Those companies are laser-focused on their truck customers and they know them deeply. They give them a ton of different options and ability to have the truck exactly fit their lifestyle.” In contrast, the Cybertruck’s target market appears to be more retail oriented. Its futuristic design and unique features may appeal to a niche audience looking for a lifestyle or leisure vehicle rather than a traditional work truck.
Despite the delays and controversies, Tesla remains confident of the Cybertruck’s prospects, with Musk boasting demand for the Cybertruck is “off the hook.”