Electric ute sales charge
The Cybertruck’s rollout signals a significant moment in the EV sector, which has struggled to produce models that mirror traditional pick-ups.
The ute has been well-received in North America, as evidenced by the steady growth in deliveries there since the start of the year.
Data acquired by Finbold, indicates that in the first quarter of 2024, Tesla sold 2,803 Cybertrucks at an average of 31 units per day.
Despite Tesla’s steady growth in ute sales, the company still lags in the electric pick-up category in the US. Ford registered 7,335 F-150s in same the period. Rivian’s R1T was third on 2,737 units, the Chevrolet Silverado EV fourth with 1,061 and GMC’s Hummer EV fifth on 272.
The growth of Cybertruck sales in 2024’s first quarter is encouraging for Tesla, which has been impacted by the slowdown in the general EV market. Notably, sales of its other models have been declining meaning the ute could help keep it afloat.
The market conditions for the EV market have had far-reaching consequences, resulting in a significant plunge in Tesla stock.
Sustained sales partly reflect the buzz created around the Cybertruck since the model was announced. It represents Tesla’s push to infiltrate the US’ traditionally conservative pick-up truck segment with plans to ramp up production in the future.
Indeed, it’s considered a unique model due to its distinctive design and its sales can be deemed successful, especially as it falls into the luxury category of full-size pick-ups.
Notably, sales are expected to increase, given Tesla’s announcement that it produced more than 1,000 units in a single week in April during its earnings report.
Elon Musk has signalled the Cybertruck is likely to become a vital component of the company’s vision. He has previously stated the marque aims to sell 250,000 yearly depending on market demand.
The Cybertruck hasn’t been without its share of controversies, sparked by Tesla’s recall of defective units. Notably, nearly 4,000 units were called back due to an accelerator defect that could cause them to become stuck when pressed.
In the wake of these concerns, it issued a vehicle-safety report regarding potential crash risks.
Within it, Tesla emphasises its commitment to engineering vehicles “to be the safest cars in the world”. The company aims to achieve with passive and active safety measures, and automated driver assistance systems.
As of 2024’s first quarter, it claimed its vehicles using autopilot technology experienced one accident per 12.28 million kilometres driven compared to the US average, which is more than 11 times higher.
Tesla still has some catch-up within the pick-up category, particularly with Ford’s dominance in the space.
There’s speculation about possible strategies, including price cuts, a tactic Tesla has used with other models. Should such a move be applied to the Cybertruck, it would signal Musk’s determination to maintain the brand’s dominance in the US EV market.
Considering the market for EVs slowing down, attention is on whether Tesla can now sustain the current pace of Cybertruck sales, reports Finbold. At the same time, it remains to be seen if the recall will affect sales or slow production.
