Tesla CEO Elon Musk recently stated that demand for the all-electric pickup Cybertruck is currently “off the hook.” As EV-a2z reported, crowd-sourced data revealed pre-orders have already hit 1.9 million.
In that sense, Bloomberg news anchor and technology chronicler Jon Erlichman forecasts the Cybertruck to emerge as a $30 billion business “overnight.”
Relevant factors
As of today, legacy automakers Ford, General Motors, and Ram lead the full-size pickup segment. Erlichman noted that these trio account for over 90% of overall sales.
However, Tesla is about to shake up the market with its cutting-edge all-electric pickup. Erlichman cited Cybertruck’s unique design as a leading factor that attracted unprecedented demand. He further indicated that its distinct design would affect the company’s production ramp-up.
In addition, Erlichman mentioned the Tesla boss’ May remarks that the Cybertruck will have an annual sales volume of 500,000 units once it hits mass production.
Most interestingly, the tech chronicler noted that a full-size pickup truck’s average cost is over $60,000. Therefore, Tesla can gain $30 billion once it successfully sells half a million Cybertruck units.
Challenges
However, Erlichman noted that there remain to be some challenges for the American automaker.
“[Traditional] trucks make big profits. Making EV’s affordable hurts profit.”
Jon Erlichman, Bloomberg news anchor and technology chronicler via Benzinga
Erlichman also expressed concerns over the model’s “radical new design,” which may not appeal to traditional pickup truck customers.
Nonetheless, the pre-orders for the Cybertruck are already on track to hit 2 million units at 1,943,876 as of July 21.
See Also:
- Tesla Cybertruck bodies-in-white photo leaks from Giga Texas
- Tesla Cybertruck spotted cruising smoothly across the 280 in Palo Alto
- Tesla Cybertruck update: Production well underway, to have a big frunk
- Tesla Cybertruck nears production with the arrival of its final stamping part
- High “intent to buy” remains among Tesla Cybertruck reservation holders, according to a survey
Cybertruck is probably the most hyped electric vehicle model yet to enter mass production next year. It presents a new revenue stream for the American automaker, considering the number of customers aiming to own the pickup.
Despite the production delays, pre-order holders remain committed to buying the highly awaited Cybertruck.
