Tesla CEO Elon Musk recently said that Cybertruck's production plan has been canceled. According to Musk, the development cost of this pure electric pickup truck has far exceeded the initial budget, and it seems that Cybertruck is no longer a viable business case.
Musk said that "knowing that there will be a lot of disappointed customers, all pre-orders will be refunded immediately, this is a decision made in the best interests of Tesla and its future."
It is understood that the Cybertruck concept model debuted in public in 2019, when the price range of new cars ranged from $39,900 to $69,900. This cyberpunk-style electric pickup truck follows a minimalist design concept from the inside out, the overall function presentation is achieved through the central human-computer interaction system, and supports automatic driving and OTA remote upgrade functions, which has also been sought after by many pickup enthusiasts.
As of mid-2021, the number of orders for this model has exceeded 1 million units, and such a huge number of orders has also brought more requirements to Tesla's factory capacity. At the opening ceremony of the Berlin factory in Germany, an employee asked Musk about the mass production of Cybertruck, and Musk responded that he would complete the product research and development work in 2022 and put into production in 2023. Obviously, such aspirations have now been dashed.
According to Tesla insiders, Musk said after the study that the Austin, Texas plant currently under construction will be more suitable for producing Model Y and Model 3. Cybertruck's huge number of orders had nowhere to go, and it could only go to the point where the plan was aborted.
Tesla, which has achieved profitability for two consecutive years, is confidently ushering in the third upcoming profitable year, and if the excessive cost investment affects the company's profitability, it is obviously a fact that Musk cannot accept. With the production of new factories such as Berlin, Tesla's global sales will also increase day by day, with the profitability of the star models Model 3 and Model Y, coupled with the abandonment of Cyberruck's research and development work, it is believed that Tesla's profitability will further increase.