Tesla is revving up the excitement this holiday season with the long-anticipated release of its luxury electric vehicle, the Cybertruck. After overcoming years of delays and redesigns, the electric car manufacturer is all set to roll out the Cybertruck to select customers, with deliveries commencing on November 30. The excitement doesn’t stop there; the Cybertruck will soon be in full production at Tesla’s state-of-the-art Texas Gigafactory.
While Tesla’s existing model lines experienced a slight dip in production and deliveries this quarter, down by approximately seven percent or around 30,000 units compared to the second quarter, they are still riding high with a remarkable year-over-year increase of around 100,000 units since 2022. This comes as no surprise given the substantial price cuts Tesla has initiated multiple times this year. First in March, then again in September, where they generously knocked off a full 20 percent from the Manufacturer’s Suggested Retail Price (MSRP) at the time, and once more in early October.
For instance, the Model X, which began 2023 with a price tag of $120,990, now boasts a more wallet-friendly price of $79,990. Similarly, the Model S, Model Y, and Model 3 have all witnessed significant price reductions, with the Model Y, for instance, dropping by a substantial 24 percent from its January price. Overall, Tesla has reported a decrease in its cost of goods sold per vehicle to approximately $37,500 in the third quarter.
Elon Musk, Tesla’s CEO, previously explained his willingness to slash prices and accept reduced margins if it results in increased sales volume, stating his commitment to making more vehicles accessible.
Tesla acknowledged a sequential drop in volumes, attributing it to planned factory upgrades discussed in their recent earnings call. However, the company remains steadfast in achieving its 2023 volume target of approximately 1.8 million vehicles, as confirmed in an October press statement. Notably, Tesla delivered an impressive 435,059 vehicles globally in the third quarter of this year.
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In addition to their remarkable vehicle production, Tesla is also investing heavily in artificial intelligence (AI) development. They’ve doubled the processing power dedicated to training their vehicular and Optimus robot AI systems compared to the second quarter. The Optimus is now receiving hardware upgrades and is being trained via AI methods rather than traditional “hard-coded” software.
As an added bonus, Tesla recently announced that all US and Canadian Hertz rentals will have access to the Tesla App, enabling renters to use their smartphones as key fobs. This tech-savvy feature adds yet another layer of convenience and accessibility for Tesla enthusiasts.
Exciting times are ahead as Tesla’s Cybertruck finally hits the roads, and the company continues to lead the charge in the electric vehicle and AI development industries.
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