Elon Musk: Tesla "dug its own grave" with Cybertruck

Cybertruck's body is said to be made of “ultra-hard 30X cold-rolled stainless steel”

Four years since electric pick-up truck was unwrapped, Musk still forecasts "enormous challenges" in building it

Tesla has “dug its own grave” with the Cybertruck, CEO Elon Musk said, as the EV maker struggles to ramp up production of the angular pick-up.

The firm is a long way behind schedule with the Cybertruck, having promised 2021 deliveries at its 2019 unveiling. It started production in July, but customers still can’t order the vehicle, with Tesla only taking reservation deposits. 

“There will be enormous challenges in reaching volume production with the Cybertruck and then in making a Cybertruck cashflow-positive,” Musk told analysts and investors on the company’s third-quarter earnings call on Wednesday.

Tesla is using innovative production techniques to build the uniquely styled truck, which is made from an ultra-hard stainless steel that the company said it had to invent. It's also using 9000-tonne gigapresses to mold large sections of the underbody at in its factory in Texas, as well as installing what it calls the largest hot-stamping facility in the world.

Musk said Tesla would reach its target volume production of 250,000 units per year starting in 2025, once it has solved the issues it's facing.

The Cybertruck is an outlier for a company that has focused its attention on producing high volumes of popular global models as efficiently as possible, including the Tesla Model 3 saloon and Tesla Model Y SUV.

“We dug our own grave with Cybertruck”, Musk said on the call. “Cybertruck is one of those special products that comes along only once in a long while. And special products that come along once in a long while are just incredibly difficult to bring to market, to reach volume, to be prosperous.”

Musk spoke about the problems of bringing the truck to market in way that would be both profitable for Tesla and “at a price people can afford”.

He also decried high interest rates that were pushing up prices and making cars less affordable.

Tesla claims it has a million reservations for Cybertruck but has yet to price the vehicle. It's likely to cost much more than the launch prediction of $39,900 for the entry-level model, which was said to have a range of 250 miles.

The first production Cybertruck was pictured on Tesla’s social-media channels recently, surrounded by factory workers. This prompted speculation that a customer handover event was approaching, but Tesla has yet to confirm a first delivery date. 

The Ford F-150 Lightning rival is the same length (5.87 metres) as traditional trucks but features a vastly different look both inside and out. For starters, it sports a radical wedge-shape design, no front grille, angular window frames and almost no bodywork curvature.

Its body is said to be made of “ultra-hard 30X cold-rolled stainless steel” and is claimed to be bulletproof against 9mm bullets.

Three powertrain options will be offered, with one, two or three electric motors. The single-motor, rear-wheel-drive version will do 0-60mph in 6.5sec and has a claimed range of 250 miles. 

It can tow 3400kg, has a 1360kg payload and was originally claimed to be priced from $39,900 (around £30,600) before any government incentives, based on Tesla's launch details. Like all variants, it is claimed to be capable of the same 1MW (1000kW) charging speed as the Tesla Semi.

The mid-range dual-motor variant provides all-wheel drive, a claimed 0-60mph time of 4.5sec and the ability to tow more than 4500kg. Tesla has previously said the model will be priced from $49,900 (£38,300) before incentives. 

The top-rung car will use Tesla’s latest tri-motor Plaid EV powertrain, as used on the Tesla Model S Plaid. Projected to be priced from $69,900 (£53,700), its specs include a claimed 500-mile range, 0-60mph in 2.9sec and the ability to complete the quarter mile in just over 10sec. The towing capacity is 6350kg, Musk has said. 

Underneath, it gets adaptive air suspension with an adjustable ride height. Musk has claimed the maximum height will be 16in, with the ability to be adjusted up and down by 4in. 

The load bay is an F-150-rivalling 6.5ft long and features a raisable cover. Tesla claims over 2800 litres of lockable storage space including the covered load bay (dubbed the ‘vault’), as well as space in the 'frunk' and sail pillars. 

The Cybertruck can seat up to six adults inside. Its minimalist interior features a dashboard dominated by a 17in tablet-style touchscreen.

At launch, the Cybertruck was available to reserve for US customers for a $100 (£77) fully refundable deposit – with no guarantee that these reservations would be converted into sales. Musk claimed shortly afterwards that 200,000 people had placed a deposit.