Tesla expects to roll out the long-awaited Cybertruck by the third quarter, according to CEO Elon Musk, who is coming under pressure from pension funds and other major investors to give more attention to the electric-vehicle business and less to Twitter or SpaceX.
Musk’s ballyhooing of the Cybertruck at its November 2019 introduction ultimately collected $100 deposits from more than 1.2 million potential customers. So far, however, progress on the Cybertruck has stalled while Ford has raced to bring a battery-electric pickup to market and has pleased enough customers to prompt the company to expand production.
General Motors is preparing to launch a BEV pickup this spring and Ram plans to introduce one next year.
During a call with investors and analysts, Musk (pictured, left) says: “Regarding the Cybertruck, we continue to build alpha versions of the Cybertruck on our pilot line for testing purposes. It’s a great product, and we’re completing the installation of the volume production line at (Austin,) Texas, and we're anticipating having a delivery event, a great delivery event probably in Q3.”
Demand for the Cybertruck remains strong, Musk says. “It is my view, a fantastic product, a hall of famer. But as with all new products, it takes time to get the manufacturing line going. And this is really a very radical product. It’s not made in the way that other cars are made.
The Cybertruck’s market launch has been pushed back over the years as Musk ordered various elements redesigned to make it less expensive.
The Cybertruck is just one of several controversies involving Musk. His Twitter social-media platform has a shaky revenue stream, and he is pushing ahead with an ambitious program for SpaceX, which has its own distinct set of problems.
Musk’s financial backers are beginning to notice.
A group of shareholders, headed by organizations supporting liberal or progressive causes, including pension systems and large institutions, have called on Tesla's board to rein in Musk.
An open letter from a group of 17 major shareholders, including the New York City Comptroller's Office, states they are growing concerned Musk is not properly focused on Tesla. The investors that signed the letter collectively hold over $1.5 billion of Tesla stock.
The investors say in their letter they want the board to bring in more independent members and work harder to solve issues at Tesla that can pose “substantial legal, operational and reputational risks” to the electric-vehicle maker, “jeopardizing its long-term value.”
Tesla says net first-quarter income fell 24% to $2.51 billion, or $0.73 a share, from $3.32 billion, or $0.95 a share, a year ago.
The company attributed the drop in earnings from Q1 2022 to underutilization of new factories, along with higher raw material, commodity, logistics and warranty costs, and lower revenue from environmental credits.
Automotive revenue, Tesla’s core segment, reached $19.96 billion in the quarter, up 18% from prior year. Total revenue rose 24%. Revenue from automotive regulatory credits during the first three months of 2023 totaled $521 million, down from $679 million a year earlier.
