HaulingAss
Well-known member
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- Oct 3, 2020
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- 2010 F-150, 2018 Model 3 P, FS DM Cybertruck
Exactly! I'm surprised most people don't understand the price will come down over time, just as fast as it needs to in order to fully utilize and optimize installed production capacity. Lower prices equals higher addressable market.It is not just another halo product, it is just Tesla couldn't build that many in the first year, and they are physically constrained as the ramp goes up. They are only able to make about 30000 trucks in 2024, which is probably only enough to cover the top skus reservation. Once we get to 2025, Tesla will need to sell this truck in volumes to the average Joe.
The Cybertruck is designed to be built at a volume and a low cost. The design shows it. It is designed to be sold in millions for decades to come. Tesla also knows that to sell that kind of volume, it just needs to be cheap.
There will be at least one or two reconfigurations of the production line before they add another and double production capacity to 500,000 per year. It might take until 2027/2028 to reach that number but that's largely a function of how much learning is required to build a vehicle utilizing such revolutionary construction techniques and technologies. By taking it slower, efficiency is increased.
In fact, the high prices for the first year will help amortize their development expenses sooner and allow them to lower prices further than if they had followed the path I predicted and kept low prices at the launch.
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