- Tesla’s Cybertruck turned a profit in under a year.
- That’s a big deal for Elon Musk as he enters the pickup truck market.
- More affordable Cybertruck trims will still be crucial to long-term success.
Less than a year after the first deliveries, Tesla’s Cybertruck is turning a profit, the company said in its earnings report Wednesday.
The production ramp also appears to be on track, with the company reporting a sequential increase in Cybertruck output at the Texas Gigafactory.
Reaching profitability in under a year is a big deal for Elon Musk as he enters the blood sport of American pickup truck sales.
The first Cybertrucks were delivered in November of 2023 at a launch event for the long-awaited electric truck. Initial reactions from Cybertruck order holders were tepid, as many were disappointed in the higher price than originally promised.
Tesla recently started taking orders for a $74,490 all-wheel drive version, but sales included in the third-quarter results would have been the more expensive Foundation Series, which was initially the only model available. This trim level ranges in price from $99,990 to $119,990.
Starting at this higher price point likely helped Cybertruck deliver its first profitable quarter, helping Tesla’s overall margins. Still, the introduction of more affordable trims will be crucial to the truck’s continued success.
Demand for large and expensive electric SUVs is waning as wealthy early adopters drop out of the market. An overall slowdown in EV demand finally caught up with Tesla in the first half of this year when it posted two-quarters of falling sales.
