When Elon Musk unveiled the Cybertruck late last month, it sent shockwaves throughout the electric vehicle world, the stock market, and the internet. The sleek bodied, sharp-edged vehicle is reminiscent of the classic Back to the Future DeLorean. It has already been pre-ordered by over 200K customers, according to a tweet by Elon Musk. (It is important to note that a pre-order involves only a $100 deposit, which is refundable). Despite the large volume of pre-orders, Tesla’s stock price dropped by 5% in the days following the announcement — decreasing Musk’s net worth by over $750 million due to his significant holdings in Tesla. Notwithstanding the market reaction to the unveiling, the Cybertruck will likely be a success in the pick-up truck consumer market.
One of the entertainment factors of the reveal was the on-stage demonstration that the vehicle is built for abuse. Unlike other Tesla vehicles that are made of stamped alumni or steel, the Cybertruck is built using 30X cold-rolled steel. The body of the vehicle took a blow from a sledgehammer without leaving a scratch. However, one window did unexpectedly shatter when a steel ball was thrown into it. The truck is meant to withstand anything a user can throw at it, which will likely appeal to current pick-up truck owners who use their trucks for towing, camping, off-roading, or any other number of activities.
The Cybertruck appears to be slightly larger than the Ford F150 (the best-selling vehicle for over three decades), and was shown capable of beating the Ford F150 in a Tug of War. Tesla’s press release indicated that there are three versions of the truck that will ultimately be available.
Cybertruck is designed to have the utility of a truck and the performance of a sports car. The vehicle is built to be durable, versatile and capable, with exceptional performance both on-road and off-road. Cybertruck will come in three variants: Single Motor Rear-Wheel Drive, Dual Motor All-Wheel Drive, and Tri Motor All-Wheel Drive.
- Price: $39,000
- Range: 250 miles
- Tow Rating: 7,500 lbs
- 0-60 mph: 6.5 seconds
- Price: $49,000
- Range: 300 miles
- Tow Rating: 10,000 lbs
- 0-60 mph: 4.5 seconds
- Price: $69,900
- Range: 500 miles
- Tow Rating: 14,000 lbs
- 0-60 mph: <3 seconds
* Tri-Motor Production won’t begin until 2022
The Truck Market
It makes perfect sense that Tesla has finally entered the pick-up truck arena. Trucks account for roughly 15 percent of U.S. vehicle sales each year, a slice of the pie that has been growing since 2009. Americans buy nearly a million Ford F150’s every year. Not only is there market demand, but pick-up trucks are the perfect build for an electric vehicle; they are large and typically more expensive than sedans, and can better carry the large and (currently) costly batteries.
Towing will also be easier with an electric truck, given the toque an electric vehicle can exert. Torque generally describes how quickly a vehicle will accelerate and its ability to pull a load. In an electric vehicle, high torque is available at low speeds and is relatively constant over a wide range of speeds. High torque enables an EV to move faster from a dead stop. This phenomenon can be described as “instant torque.”
However, perhaps consistent with the incredible increase in truck ownership over the past decade, truck owners frequently use their trucks much like other car owners: for commuting to work. So perhaps increased towing ability is not quite the selling point for Tesla.
A 500-mile range is incredibly impressive, considering many EVs have a range right at or below 300 miles per charge, with many below 200 miles. However, it is not likely to be seen as an improvement for truck drivers, who pleasure drive more than twice as often as other vehicle owners. Even at the top of the line, a 500-mile range is lower than an F150, which can get nearly 700 miles per tank (assuming 19 mpg and a 36-gallon tank).
If the Cybertruck can take control of a sizable segment of the truck market and begin chipping away at the market share of their low-fuel economy competitors, Tesla may begin making tangible progress towards decreasing domestic oil consumption and quicken the transition to an electrified transportation sector.
Ultimately, the sleek new design and popular appeal of the Tesla brand will likely make the Cybertruck a successful product. But it is doubtful that many purchasers will utilize the benefits an electric truck has over a traditional pick-up. They will instead likely use the vehicle as they would any other car, or as a status symbol. There are plenty of SUV and light-duty truck owners who will be glad to switch to an environmentally friendly alternative that still allows them to ride high above traffic. Others will be more than happy to end their reliance on highly-fluctuating fuel prices.