Tesla’s New Electric Pickup Truck No Threat to Ford and GM Market
Ford and GM may have worried about the new electric Tesla pickup truck and what it might do to their stock prices, but it turns out they needn’t have worried. Wallstreet analysts were not impressed by this “Cybertruck” pickup truck that was revealed in Tesla’s live demonstration.
As expected, there were specs on this pickup that would appeal to Tesla fans: a range of 250-500+ miles, and a 0-60 time of less than three seconds.
Commercial pickup owners would appreciate the 14,000 lb towing, undentable body, and adaptive air suspension. This electric Tesla truck could be considered a lifestyle product as well, reflecting the lifestyle of their driver.
Even as Tesla CEO Elon Musk revealed the approval of the Model Y SUV prototype for production in 2018, he hinted about a “Cybertruck” and was more excited about it than Model Y SUV.
Here are six reasons why the electric Tesla pickup truck is not expected to be a success:
1. The Futuristic Design was Described as Weird
Elon Musk revealed that the reference point for the design of the pickup truck was the movie Blade Runner, bringing to mind thoughts of dystopia and societal chaos.
The angles and lines of the truck not only look sharp and different than what you would find in a regular pickup truck, but some analysts also believe that the design would affect performance.
2. The Design Has No Market
Both the Tesla brand and cyberpunk design aren’t likely to resonate with current pickup owners or necessarily attract new pickup owners.
3. A Live Test Just Emphasized the Cybertuck’s Weakness
As part of a live reveal event, there was a demonstration of the “armor glass windows” where a metal ball easily smashed the windows.
4. This Pickup Truck Will Only Appeal to a Niche Market
Ford and GM sell up to three million pickup trucks annually in the United States, and this pickup truck will not match those mass market numbers. It may appeal to a niche market of those who love designs that are outside the box.
5. Concerns About Performance
The concerns about performance were due to questions about a pickup truck being electric, such as battery ranges under actual working conditions like having a payload or towing.
And if the batteries have reduced range, would commercial customers have to compensate by buying more features, which would make the electric pickup truck much more expensive than conventional pickups.
6. Tesla’s Quality
Tesla described the “Cybertruck” as having a heavy-duty exterior composed of “ultra-hard 30X cold-rolled stainless steel”.
Commercial buyers always have to consider build quality. The pickup gave the appearance of being solidly built, but its durability under actual working conditions was unproven, especially since it seemed to have a unibody construction. As mentioned earlier, the “armor glass windows” failed the test.
Tesla shares fell up to 7% the day after the pickup truck was featured in the live event. It might be that this pickup truck is just a little ahead of its time.