Elon Musk replies to a Tweet about Pricing on the Cybertruck

[Ogre]

Rivian owners are leaving in droves.

https://driveteslacanada.ca/news/po...-customers-are-cancelling-their-reservations/

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[nomadmusk]

Ya kno, there's an actual chance this has been a faux pas in the works since the beginning, sped up by Russia. We've all heard that, "Tesla is years ahead of the competition." Yet based on pricing, we have not seen it, in fact I've been wondering how vehicles like the mach-e and ionic 5 have come well within earshot of the model Y, based on performance, even with the Y's demand inflated price. Maybe the price savings of the CT have been real while others have been merely manufactured, with plans to steadily increase. The Taycan and Audi were the last realistic price I can remember, maybe it's just an American sticker shock strategy.


Have there been any significant price jumps on EU vehicles?

 

[nomadmusk]

In any case, Lucid, and other startups right now.

It's crazy that they jump to buying an ICE even before mentioning the word cybertruck. Btw, these guys look like a copy-paste version of RJ.

 

[cybguy]

After the Rivian Price bump someone got Musk to reply about Cybertruck pricing a bit.



Not entirely sure what this means. Seems like a bit of a dodge to me.

It’s the usual Musk Rorschach test for the reader. Everyone will read into it what they want.

Of course Tesla doesn't yet know the what the pricing of the Cybertruck will be when sales start. No surprises here.

 

[Ogre]

Of course Tesla doesn't yet know the what the pricing of the Cybertruck will be when sales start. No surprises here.

Tesla is building a billion dollar factory for the Cybertruck.

They damned sure know how much it’s going to sell for. You don’t build out that much capacity gambling that you are going to be able to make a product at an appealing enough price to keep the facility operating at capacity.

 

[Crissa]

Tesla is building a billion dollar factory for the Cybertruck.

They damned sure know how much it’s going to sell for. You don’t build out that much capacity gambling that you are going to be able to make a product at an appealing enough price to keep the facility operating at capacity.

Ehh, it's all a bet they've made. They don't know that things won't go outside of plan. Certainly they have a plan.

For instance, the repeat of the quarter million trucks a year is probably a confirmation of how much metal they've reserved.

-Crissa

 

[CyberGus]

It's crazy that they jump to buying an ICE even before mentioning the word cybertruck.

Anyone without an existing Cybertruck reservation will be waiting 3 years minimum.

 

[Ogre]

It's crazy that they jump to buying an ICE even before mentioning the word cybertruck. Btw, these guys look like a copy-paste version of RJ.

A lot of people in the Rivian community *HATE* the Cybertruck, some hate all things Tesla. Reminds me of Android fans and their hate of all things Apple.

I don’t know why exactly, likely varies a lot. It’s also not 100%. A fair number on here and elsewhere own Teslas and were eyeballing Rivian.

 

[DarinCT]

I'm of the mind that both honoring the original prices and raising prices are true.

There's enough clarity about the manufacturing and backlog that Tesla has a good idea when the start will be, how many will convert, and when they'll start accepting new orders again. Tesla changes prices all the time. When they finally do open up for more CT orders, I predict the prices will be move higher and lower and higher through time. In the meantime, prices are as is, the margin might be loss leading but better to create goodwill and lose tens of millions than grab a hundred million and lose future customers. Better to create economies of scale than smaller runs. Tesla is a position to eat the diminished margin (or loss) till economies of scale increase margin as they have in the past.

Is Tesla doing it out of good business sense or Elon's ego? I don't really care as both are good for me.

 

[Sirfun]

A lot of people in the Rivian community *HATE* the Cybertruck, some hate all things Tesla. Reminds me of Android fans and their hate of all things Apple.

I don’t know why exactly, likely varies a lot. It’s also not 100%. A fair number on here and elsewhere own Teslas and were eyeballing Rivian.

After seeing a Rivian driving a couple of weeks back, I can see where the design of the Cybertruck could be polarizing to some prospective Rivian buyers. The Rivian is very nondescript. Beside the headlights, it could go by the average person without notice.

The Cybertruck is in your face. It will be noticed, and it won't be ignored. That's not something I was too happy about being an early reservation holder, but I like the design, and am very excited about getting on ASAP. I could see where some Rivian folks want that anonymity, and are turned off by in your face designs.

 

[DarinCT]

There are the guys from “Rivian Stories”. They built an online community of Rivian owners. They have a weekly podcast. It’s fair to say they are some of the biggest Rivian fans out there.



One of the hosts is buying a Nissan. Didn’t catch what the other two were doing, but I’m pretty sure it rhymes with Hansel.

I wonder how they worded the email to Amazon, if there even was one.

"As our largest investor and number one customer, we have a problem with pricing. To solve this problem with pricing we decided to stick it to the community of die-hard fans who would have given us free marketing. Thank you for coming on this journey of making money and increasing stockholder value."

 

[cybguy]

Tesla is building a billion dollar factory for the Cybertruck.

They damned sure know how much it’s going to sell for. You don’t build out that much capacity gambling that you are going to be able to make a product at an appealing enough price to keep the facility operating at capacity.

Seriously, it's still a couple years away. They're using the Texas GF for the MY. Time and inflation changes a lot of things. They'll make it competitive but no way do they have prices finalized. Musk was being honest. And those that purchase a Cybertruck in 2 years from now will likely be pay less than those that have to wait 5 more years. There is a reason Tesla took the prices down last year and didn't just change the listed prices. Did Rivian know 2 years ago what the price increase to their vehicles would be now?

 

[ED_SFO]

My prediction:

$60k - single motor 2025
No tonneau
No 4WS
No adj suspension
Single motor
250 mi range
Single screen
No ramp
No glass roof

$75k - Dual motor end 2024
Tonneau
Air suspension
Dual motor
Dual screen
Glass roof
300 miles
Ramp optional

$100k Tri-motor - begining 2024
Dual motor options plus:
4WS
ramp
Solar tonneau
Tri-motor
500+ range
Optional solar roof

$120k+ Quad motor
Tri motor options plus

Quad motor
Solar roof
600+ range
0-60 2.4 sec
1/4 10.5 seconds

IF anything of these configs are under my prediction that would be amazing.

 

[cybguy]

Yes I agree the legacy will sell them at a loss, which is why they don't like EVs. They sell there main ICE cars mostly at cost, they make most of their money selling overpriced parts for there ICE vehicles and EVs will kill there current business model. They won't make as much selling maintenance parts to the dealerships since EVs have lower maintenance. They will have to raise there car prices for EVs much more to keep profits up.

All true but Tesla has yet to report any profits from EV produced in the United States. Tesla's only profits have come from China.

 

[charliemagpie]

Why CT price will increase or not. I agree with every point I've read.

Foremost, Musk is an Animal, lol. He will want to maximise the price, but he has strategic considerations.


If he goes for too high a high margin, he will open up a Niche for competitors to come in with fewer features…, after all, not all truck owners want i.e. Crab walk… so in effect, he has given the opposition a leg up and created a REAL value decision to buy their product.

This will be avoided or mitigated literally at all cost.

And we need to consider he likes to streamline.

He will make it compelling to choose the CT, even with its features. CT will comprise features and value as a package.

"I think they can catch up, but not in manufacturing "... Something like that.

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