Tesla Cybertruck Manufacturing Begins In Texas

Tesla tweeted about the development and included a picture of workmen covering much of the car with safety jackets and helmets. Production was supposed to begin two years after Musk unveiled the wedge-shaped truck's prototype in November 2019.

When addressing shareholders at the company's annual meeting in May, Musk tempers expectations for how soon Tesla can ramp up production by pointing out that the Cybertruck's unique design presents difficulties. He stated that the body will be made of stainless steel, which may be costly and challenging to form and weld.

“It’s going to be hard to make the cost affordable because it is a new car, new manufacturing method,” Musk said. “In the grand scheme of things, relative to the production rate of all the other cars we make, it will be small. But it’s still very cool.”

Musk refused to provide the most recent information when asked for it in April of this year, claiming Tesla would save the information for a Cybertruck handover ceremony he wanted to have around the end of the third quarter.

Initially, Tesla stated that it will offer the Cybertruck in three variations:

• Starting at $39,900, a single-motor variant with a range of more than 250 miles.
• A dual-motor vehicle with a range of more than 300 miles is available for $49,900.
• A tri-motor version with a range of more than 500 miles is also available, beginning at $69,900.

The introduction of an electric version of Ford Motor Company's best-selling F-150, the start of sales of General Motors Co.'s GMC Hummer EV pickups, and the debut of Rivian Automotive Inc.'s R1T truck have all occurred since Tesla revealed the vehicle at an event that was tarnished by the disastrous display of purportedly bulletproof glass.

According to Deutsche Bank analyst Emmanuel Rosner, Tesla will only deliver 2,000 Cybertrucks this year out of a projected 1.78 million cars. He questioned if the product will increase the company's profitability in a report from June 26 by pointing to the challenges of production optimization and the requirement for larger battery packs to support towing.

According to Rosner, who rates Tesla stock as a buy with a $260 price target, "this could layer on an additional headwind to margin in the back half" of the year. The shares, which rose 128% this year, ended Friday at $281.38.