In the third quarter, Tesla's (TSLA, Financial) Cybertruck captured nearly 50% of the U.S. electric truck market by selling 16,692 units. Despite an average transaction price exceeding $115,000 per vehicle, the Cybertruck's sales performance remains remarkable.
Since its prototype launch in 2019, the Cybertruck has been a point of debate due to its unique design, production challenges, and high price. Nonetheless, it has emerged as a bestseller, competing with Chevrolet's Silverado, GMC's Hummer and Denali, Rivian's (RIVN) R1T, and Ford's F-150 Lightning. According to Kelley Blue Book, the Cybertruck's average transaction price in September was $116,706, with over 5,000 units sold that month.
The high sales volume of such an expensive model is uncommon. Analyst Mike Ward notes that only about 3% to 4% of new cars have a price tag exceeding $100,000, with Cybertruck capturing roughly 10% of this market segment. By the end of September, Tesla's market share in U.S. new car sales was around 4%.
While the Cybertruck's debut is impressive, it is too early to conclude its success. The current sales figures are promising, but the vehicle faces significant challenges. Tesla must release different models to substantially boost sales growth.
The next challenge for Cybertruck is to sell more affordable models. The tri-motor "Cyberbeast" starts at about $95,000, while the all-wheel-drive version begins at around $75,000. The rear-wheel-drive version, expected to start at $60,000, is yet to be released. Tesla's strategy of prioritizing the production of higher-priced, higher-profit versions is logical.
Tesla aims for an annual production of 250,000 Cybertrucks. Achieving this goal requires strong sales across all models.
Looking forward, Tesla plans to introduce its budget-friendly electric vehicle, often referred to as Model 2, by 2025. This move will allow Tesla to enter a broader automotive market. Sedans and small SUVs priced under $40,000 account for about half of the new car market.
Investors anticipate that Model 2 will help revive stalling sales growth. In the first three quarters of 2024, Tesla delivered approximately 1.2 million vehicles, a year-on-year decline of about 2%. Wall Street projects around 1.8 million deliveries in 2024, in line with 2023 figures.
Looking ahead to 2025, forecasts suggest deliveries could reach approximately 2 million, potentially including more Cybertrucks and some Model 2 vehicles.
