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Home ยป Musk Details Cybertruck Ramp, Advertising, Giga Mexico on Tesla Earnings Call Q3 2023

Musk Details Cybertruck Ramp, Advertising, Giga Mexico on Tesla Earnings Call Q3 2023

Elon musk drive Cybertruck

Notable insights emerged from Tesla’s latest Q3 2023 earnings call, with CEO Elon Musk touching on Cybertruck production, advertising, and new factories.

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On Cybertruck, Musk cautioned that hitting volume production will be extremely difficult given the design complexity. He projects reaching 250,000 units annually by 2025, with 2024 output likely below that. Ramping Cybertruck while remaining cash flow positive poses an enormous challenge.

Musk also revealed Tesla now has over 1 million Cybertruck reservations, confirming major preorder demand. Despite production hurdles, he views Cybertruck as a revolutionary product that only comes along rarely.

On advertising, Musk said Tesla is already doing some and sees room for more. But he cited today’s high interest rates and costs as potential headwinds.

Regarding factories, Musk said Giga Mexico construction will begin soon but Tesla wants to assess the economic landscape first. He expects an initial phase next year but is wary of going “full tilt” amid recession worries.

Other Q3 2023 earnings call Tesla highlights:

  • Tesla FSD price was lowered to make the technology more accessible for evaluation
  • No major Tesla Bot updates, but future progress will be shared online
  • Musk believes strong price elasticity means EVs must achieve Toyota RAV4 cost levels
  • Model Y on track to become best selling vehicle globally in 2023 by volume
  • Cybertruck won’t be significantly positive for cash flow until 12-18 months post-launch

The call provided valuable color on Cybertruck, which Musk believes will be transformative but difficult to produce initially, Tesla Sets November 30 Cybertruck Deliveries at Texas Factory. With reservations topping 1 million, demand is not an issue. Rather, the focus is on reaching volume production with positive economics, which Tesla anticipates by 2025.

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