Elon Musk Says Tesla Cybertruck Could Cost a Million Dollars

[JoRoMo]

The title for this post is wildly deceiving.

I think it has been commented, at ~18 minutes into Q2 Earning call he said «We can make a small number of vehicles, but the effective cost, if you make a small number of vehicles, is insane. They would literally cost a million dollars piece or more. There’s a reason why you do things at volume production, which is to get the economies of scale that get the post down.».

I bolded «would», it «could» not cost millions because it would just not actually ever happen…

 

[mark95476]

Yup. It's FUD and it's very weak. There are custom builders that'll do virtually anything you want given enough money.

I think it has been commented, at ~18 minutes into Q2 Earning call he said «We can make a small number of vehicles, but the effective cost, if you make a small number of vehicles, is insane. They would literally cost a million dollars piece or more. There’s a reason why you do things at volume production, which is to get the economies of scale that get the post down.».

I bolded «would», it «could» not cost millions because it would just not actually ever happen…

 

[BostonBurley]

I think it has been commented, at ~18 minutes into Q2 Earning call he said «We can make a small number of vehicles, but the effective cost, if you make a small number of vehicles, is insane. They would literally cost a million dollars piece or more. There’s a reason why you do things at volume production, which is to get the economies of scale that get the post down.».

I bolded «would», it «could» not cost millions because it would just not actually I think it has been commented, at ~18 minutes into Q2 Earning call he said «We can make a small number of vehicles, but the effective cost, if you make a small number of vehicles, is insane. They would literally cost a million dollars piece or more. There’s a reason why you do things at volume production, which is to get the economies of scale that get the post down.».

I bolded «would», it «could» not cost millions because it would just not actually ever h

I think it has been commented, at ~18 minutes into Q2 Earning call he said «We can make a small number of vehicles, but the effective cost, if you make a small number of vehicles, is insane. They would literally cost a million dollars piece or more. There’s a reason why you do things at volume production, which is to get the economies of scale that get the post down.».

I bolded «would», it «could» not cost millions because it would just not actually ever happen…

Elon enjoys presenting a scenario where some quotable bs is shared but in hindsight nothing was said at all. We know about volume production Elon. We know about economies of scale. We just didn’t know it would be 4 years before our deposit netted us the promised vehicle. Cybertruck will be the third or fourth ev truck to market. At least that poseur will be in Texas where his disdain for those who disagree with him can have a new setting.

 

[BostonBurley]

Yup. It's FUD and it's very weak. There are custom builders that'll do virtually anything you want given enough money.

What’s the very weak FUD exactly? Hard to see a supporting viewpoint for Elon aside from religiosity of bois.

 

[BostonBurley]

I think it has been commented, at ~18 minutes into Q2 Earning call he said «We can make a small number of vehicles, but the effective cost, if you make a small number of vehicles, is insane. They would literally cost a million dollars piece or more. There’s a reason why you do things at volume production, which is to get the economies of scale that get the post down.».

I bolded «would», it «could» not cost millions because it would just not actually ever happen…

Exactly. If the title stated it would cost a million each, it would be fine. But it’s clickbait to say could. Could has potential.

 

[Dcam]

After parading the prototype, Tesla seems to have hit a roadblock with the production of the Cybertruck.

View attachment 689586

After dozens of campaigns and even a parade in New York City, electric car maker Tesla is now facing an obstacle with the production of its heavy vehicle, Cybertruck. Speaking at a quarterly earnings call from the Giga Factory in Texas, CEO Elon Musk brought forward the challenges in making the Cybertruck at a large scale. Failure to do so would result in each Cybertruck costing a million dollars to make.

After delivering sedans that leave supercars behind, Tesla is now focused on all-electric heavy vehicles. Earlier in May, it proudly sent out a prototype on the streets of New York City.

While this made much noise on social media, the production seems to have stuttered. As Tesla has learned through delayed deliveries of its other cars, putting together a car at a mass scale is much different than putting together a prototype, something Musk kept repeating during the recent call.

The last time around, Tesla was putting together an electric car. This time, however, it is putting together a Cybertruck that is like none other. As its patents revealed earlier this year, the Cybertruck will come with an armor-glass, a self-sensing air conditioning system, eye-tracking technology to control the car's mirrors, among many other things. But it is the massive range of 610 miles (980+ km) that seems to be causing trouble at the moment.

To achieve this range, Tesla is innovating with a 4680 battery cell pack, which in theory is a lightweight and cost-effective option. However, it is something that hasn't been done before and requires a lot of innovations on Tesla's part. Recounting the progress they have made so far, Musk said that they weren't making minor improvements but "half a dozen major improvements and dozens of small improvements" to make it possible. However, he couldn't give a date as to when these issues would be resolved.

Musk also cited how chip shortages at a global level were stalling their progress. The company did manage to find some alternates and rewrite firmware to get production up to speed but chips are still the slowest part of their supply chain and he expects them to remain so for the rest of the year. Stressing on how difficult production was, Musk said, "there are thousand unique parts and processes that have to work. And the greater growth of production goes as fast as the least lucky and dumbest of those 10,000 things."

"We can make a small number of vehicles, but the effective cost, if you make a small number of vehicles, is insane," Musk added. "They would literally cost a million dollars piece or more."

Tesla continues to aim to begin deliveries of its Cybertruck by the end of this year. It has a backup plan of using a structurally different battery pack. This would need efforts on a war footing but as Musk himself believes, Tesla's efforts in delivering cars make World War II look trivial.


Source

So bored with FUD reads.

 

[hridge2020]

Prices we first saw.

Prices we might see soon.

 

[Dcam]

Prices we first saw.

View attachment 776243


Prices we might see soon.

View attachment 776241

Such wild speculation

 

[BostonBurley]

Cybertruck is thrice delayed, this time until next year, all the while retaining reservation funds made under a completely different timeline… and fan bois say FUD.

 

[Bouba]

Cybertruck is thrice delayed, this time until next year, all the while retaining reservation funds made under a completely different timeline… and fan bois say FUD.

In fairness....car production is being halted around the world because of supply issues....so the Tesla resources are being diverted to existing models...even Toyota in Japan had to shut up shop

 

[texas_star_TM3]

yeah... imagine being that in denial assuming AWD 300+ miles of range Cybertruck will only be modestly more than the $49k announced - while also scolding Rivian for increasing prices for a similarly spec'ed truck to well above $70k ...

Tesla isn't a budget brand and won't undercut direct competition to the tune of ($20k) less even *if* they could produce it for $49k while still making a small profit. they aren't a charity.

 

[texas_star_TM3]

Such wild speculation

at least Rivian and Ford are selling their trucks and prices are finalized... my guess is we know Cybertruck pricing better sometime in mid-2024 when they start prepping for delivery...

 

[Lloyd]

at least Rivian and Ford are selling their trucks and prices are finalized... my guess is we know Cybertruck pricing better sometime in mid-2024 when they start prepping for delivery...

From Electrek:

Just two days ago, Rivian announced it would be either increasing the price of reservation holder vehicles $12,000+ or making reservation holders wait until 2024 at the earliest and giving them a smaller battery with a slower drivetrain and only two motors. Not the type of note Rivian reservation holders were hoping to see before their delivery.

The backlash from reservation holders, some from as far back as 2018, was alarming. In polls we and others took, a significant majority of reservation holders dropped their reservations. Most of the rest were waiting to see what Rivian did. Just two days later, we have an answer…





Today, CEO and Founder RJ Scaringe wrote owners telling them they were going to roll back the pricing update for anyone who ordered before the March 1 announcement. The new more expensive pricing and configurations would continue for those who wanted to place an order now.


The full letter can be seen below, with the key paragraph bolded:

Hello Everyone,
Earlier this week, we announced pricing increases that broke the trust we have worked to build with you. Since originally setting our pricing structure, and most especially in recent months, a lot has changed. The costs of the components and materials that go into building our vehicles have risen considerably. Everything from semiconductors to sheet metal to seats has become more expensive and with this we have seen average new vehicle pricing across the U.S. rise more than 30% since 2018. Given our build lead up times, we need to plan production costs not only for today, but also for the future.
As we worked to update pricing to reflect these cost increases, we wrongly decided to make these changes apply to all future deliveries, including pre-existing configured preorders. We failed to appreciate how you viewed your configuration as price locked, and we wrongly assumed the announced Dual-Motor and Standard battery pack would provide configurations that would deliver price points similar to your original configuration. While this was the logic, it was wrong and we broke your trust in Rivian.
We also didn’t manage communications well. We didn’t give you enough insight into what was driving these decisions. The most important aspect of what we are building is our relationship with all of you. As we demonstrated earlier this week, trust is hard to build and easy to break. In speaking with many of you over the last two days, I fully realize and acknowledge how upset many of you felt. I have made a lot of mistakes since starting Rivian more than 12 years ago, but this one has been the most painful. I am truly sorry and committed to rebuilding your trust.
One of the things we talk about a lot internally is that we will make mistakes – it’s part of building something complex. The key is to learn from them and address them when they are made. It is how we grow. We made a mistake in how we approached our pricing changes, and what is important now is that we fix it.
For anyone with a Rivian preorder as of the March 1 pricing announcement, your original configured price will be honored. If you canceled your preorder on or after March 1 and would like to reinstate it, we will restore your original configuration, pricing and delivery timing. Our team will be sending an email in the next few days with more details.
Regarding our updated pricing for future preorders, the introduction of our Dual-Motor configuration and Standard battery pack has been designed to enable us to maintain lower starting prices while adjusting the pricing of the Quad-Motor and larger battery packs to reflect rising costs. Building a durable business is core to the continued impact we can deliver as a company. We are focused on building a brand and products that will continue to scale to different vehicle sizes, use cases, price points and markets – this growth will only be possible with your support and continued feedback.
Thank you for the personal notes and discussions I had with so many of you. Your feedback makes us better.
RJ

Electrek’s take​

Well that was an “adventure.” What do you think of the latest move by Rivian? Is all forgiven? Certainly this letter by RJ goes a long way, though you have to be wary of what made that happen i nthe first place.


At a conservative $12,000/order on 70,000 pre-orders, this is costing Rivian $840M. Not chump change but also a low price to pay for goodwill from your biggest fans. The RIVN stock price is down to around $50 on the news.


Wth the price hike on new orders, this should bring back almost 100% of the reservation holders who now know they can sell their vehicles at a significant premium. If nothing else, perhaps more people will now follow through with their orders than if nothing happened, now they know they are getting a 20% discount.

 

[hridge2020]

 

[Dcam]

Cybertruck is thrice delayed, this time until next year, all the while retaining reservation funds made under a completely different timeline… and fan bois say FUD.

Don’t be jealous ice fan gurl

 

[Dcam]

at least Rivian and Ford are selling their trucks and prices are finalized... my guess is we know Cybertruck pricing better sometime in mid-2024 when they start prepping for delivery...

You need to get caught up on the headlines

 

[CyberGus]

 

[Dcam]

Five billion dollars $tsla

 

[BostonBurley]

yeah... imagine being that in denial assuming AWD 300+ miles of range Cybertruck will only be modestly more than the $49k announced - while also scolding Rivian for increasing prices for a similarly spec'ed truck to well above $70k ...

Tesla isn't a budget brand and won't undercut direct competition to the tune of ($20k) less even *if* they could produce it for $49k while still making a small profit. they aren't a charity.

Omg who called Tesla a charity? Hilarious.