Tesla Cybertruck Recall Offers Glimpse into Sales Figures
The electric vehicle market has been dominated by Tesla, but recent issues with their self-driving features and more has sparked some concern among owners.
Their newest Tesla Cybertrucks, that resemble more of a military tank than a car, were released in November 2023 and range between $81,000 to $101,000, depending on the Cybertruck accesories and features.
While a new vehicle in their portfolio seemingly should have helped sales, a new recall may be contributing to their company struggles.
On Wednesday, April 17th, 2024, Tesla recalled all of the nearly 4,000 Cybertrucks over a faulty accelerator pedal. Here's everything you need to know.
A Look at Cybertruck Sales
Unlike most Tesla recalls addressed through software updates, such as the December 2023 recall where over 2 million cars required an Autopilot software update, this one requires physical repairs.
This figure, 3,878, stands in contrast to the estimated 1.9 million reservations placed earlier in 2023. While not a blockbuster number, it positions Tesla as a competitor in the early beginnings of the electric truck market.
Ford currently leads the pack with 7,743 F-150 Lightning trucks sold in Q1 2024, followed by General Motors with 1,688 Hummer EVs. Rivian, offering both trucks and SUVs, delivered 13,588 vehicles, with an estimated 2,399 being the R1T truck.
Despite the initial sales figures, Tesla holds ambitious plans for the Cybertruck. CEO Elon Musk has projected annual production of 250,000 to 500,000 units, with suppliers reportedly gearing up for at least 375,000 annually.
Analyst Ming-Chi Kuo estimates Tesla could deliver 240,000 to 260,000 Cybertrucks by the end of 2025.
Recall Adds to Tesla's Struggles
The Cybertruck recall adds another layer of negativity to the recent turbulence Tesla is facing. Analysts consider it a blow to brand reputation, also considering Elon Musk's unpredictable actions and poor management of social media platform X (formerly Twitter).
Questions have also surrounded the safety and delays plaguing Tesla's electric car technology. Their dominance in the EV market faces pressure from established automakers, particularly Chinese companies, and a potentially hurting EV market overall.
Beyond the Cybertruck Recall
Analyst concerns go beyond the Cybertruck's recall. Tesla's energy generation and storage sales haven't shown significant growth, while its services sector remains low-margin.
Ultimately, Tesla's success hinges on its ability to sell and lease EVs. The company's stock price reflects these concerns, closing down 3.4% on the day. Tesla's upcoming first-quarter earnings report will be closely watched as investors assess the company's health and future prospects.