Experts Still Have Questions About Tesla's Cybertruck

Tesla will deliver its first production Cybertruck all-electric pickup truck today during an event at the company's factory in Austin, Texas. This follows a long run of delays and promises from company CEO Elon Musk, who has been talking about the electric pickup since his 2016 "Master Plan".

In 2019, he said production of the Cybertruck was scheduled to start in late 2021. That date was delayed to 2022 and then to July 2023 for the November deliveries.

Tesla knows how to make and keep interest around electric vehicles (EVs). The company also knows how to sell EVs. In the first half of 2023, Tesla moved more than 935,000 of them globally, which is a 65 percent increase from the same period in 2022.

But, that doesn't mean the company has thought of everything, and experts say there are still many blind spots.

"Everything leading up until today's first handovers has been a total guessing game, and it's honestly hard to know if the Cybertruck will be a hit or a miss for Tesla. Musk, whose priorities have clearly gravitated elsewhere, has boasted and overpromised for years as fans and preorder holders have sat patiently waiting. I'm very skeptical on the pricing," Robby DeGraff, product and consumer insights analyst at AutoPacific told Newsweek.

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Tesla Cybertruck Price Changes

Back in 2019 Musk said the basic Cybertruck model with one motor and rear-wheel drive would cost $39,900, matching Ford's stated price when the F-150 Lightning came out. The two-motor, all-wheel drive version was set at $49,900 and the three-motor version (one in front, two in back), was said to have a 500-mile range and have a base price of $69,900. Those prices disappeared from the website in 2021.

Musk confirmed there will probably be a price increase before launch, telling Forbes, "It's going to be hard to make affordable because it is a new car, a new manufacturing method." Additionally, only the dual- and tri-motor models will be available at launch so the lowest price available will naturally be higher.

"The Light Duty Large Pickup segment's average transaction price, including all OEM and dealer discounting, has been about $60,000 for the last 12 months, while the midsize pick-up segment has averaged around $40,000. Therefore, pricing the entry-level Cybertruck at $61,000, and the mid and high-spec models at $80,000 and $100,000, respectively, is reasonable when considering the tax incentives and monthly cost of ownership savings. An entry-level Cybertruck at $40,000 would have been underpriced.," Tony Salerno, managing director of advisory and analytics J.D. Power told Newsweek.

Tesla Cybertruck Quality Questions

Early Tesla vehicles had quality problems with large and non-uniform panel gaps, mismatched paint, water leaks and other issues. In November of 2022 Consumer Reports rated Tesla as one of the most unreliable brands according to its annual report. In J.D. Power's 2023 Initial Quality Study it was next to worst in problems per 100 cars, though the score was improved from the previous year.

The Cybertruck is a new model with a harsher duty cycle than a sedan or sport utility vehicle (SUV), in addition to being the first such body style produced by the company. It will have to contend with more heat and power than any other Tesla has before when towing up to 11,000 pounds using around 800 horsepower.

"Quality issues typically arise more frequently during the initial rollout of new vehicle models compared to those that have been in production for a substantial period. Therefore, it's not surprising that certain quality issues might not be entirely resolved during the initial launch phase. It is crucial to monitor the improvements in the fit and finish that Tesla makes as production becomes more robust," said Salerno.

"The impact of quality issues on sales will become apparent after the initial demand subsides, particularly in the secondary market. However, keep in mind that Land Rover vehicles have traditionally not ranked high in quality, but that doesn't seem to materially impact demand for Range Rovers."

Tesla Cybertruck's Steel Body

The Cybertruck will be the first vehicle to use a stainless-steel exterior since the DMC DeLorean, which faced a series of production issues, including concerns about its stainless-steel body and panel alignment. Tesla's extra-thick (3 mm) steel cannot be stamped like a standard body panel, it can only be bent in straight lines, leading to the unusual shape.

"The body material is a unique attribute, and those familiar with Walter Isaacson's book on Elon know of his admiration for the attributes of stainless steel. Whether consumers will love stainless steel as much as Elon does, only time will tell. It will also be interesting to see if Tesla evolves the material finish. Consider how stainless steel kitchen appliances have evolved over the past two decades," Salerno said.

Tesla's Reputation at Stake

Tesla is excellent at keeping its reputation clean with its fans. Despite problems with quality, repairs and Autopilot features, it's still the biggest EV brand in the U.S. and the second biggest in the world.

The company also has a huge advantage with experience in running a reliable network of charging stations for its customers.

However, truck customers are different than ones that buy passenger cars and SUVs.

"When it comes to typical pickup truck capability (towing, hauling, etc.) whether the Cybertruck overdelivers or underwhelms, I don't believe it'll be too big of a concern for who will actually be buying one. Remember, the folks you'll see driving around in a Cybertruck likely won't ever attach anything to its tow hitch, take them off-road, or haul anything more than a weekend's worth of lawn supplies from Home Depot on a Saturday morning," said DeGraff.

Musk says Tesla expects to produce 250,000 Cybertrucks per year by 2025 at the Gigafactory in Austin, Texas, and it has the fans to fill them. Its challenge now is to convince everyone else.

Updated quote from Tony Salerno