Elon Musk: Tesla price cuts are boosting demand

The controversial CEO who acquired Twitter late last year said production of Cybertruck pickups won’t contribute much to the automaker’s numbers this year. The first launch he had promised in late 2021.

Responding to a question about Tesla having a revised launch date in mid-2023, Musk said, “We expect production to start sometime this summer.” is always very slow, so I always try to downplay the start of production.”

Musk said he would rather focus on mass production, which is expected next year. He added that the wild-style pickup will be a special product with a new generation of hardware for semi-autonomous driving.

Due to the delay, the Cybertuck will hit the market after rivals like the Rivian R1T in late 2021, last year’s Ford F-150 Lightning and the Chevrolet Silverado EV coming in the spring.

said Jessica Caldwell, Executive Director of Insights at Edmunds. “Cybertruck almost seems like old news because the company has been talking about it for so long,” said Caldwell, who first unveiled her 2019 pickup.

Caldwell said Tesla will continue to rely heavily on its Model 3 compact sedan, Model Y compact crossover and possibly future mainstream vehicles for the bulk of its production.

Tesla also reported fourth-quarter and full-year results after the market close on Wednesday.

Net income for the quarter was $3.69 billion ($1.07 per share), compared with $2.32 billion (68 cents per share) in the prior year quarter.

tesla stock In after-hours trading, it rose 5.5% to $152.39.

The EV leader beat analysts’ expectations for earnings despite lower profit margins per vehicle. Analysts are eyeing the automaker’s gross margins after this month’s price cuts.

The company said it had revenue of $24.32 billion for the three months ended Dec. 31, compared with the average analyst estimate of $24.16 billion, according to Reuters data. Tesla sold 405,278 units in the fourth quarter.

According to Tesla, its automobile business profit margin was 25.9% in the fourth quarter, the lowest in two years.

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