The unique Tesla Cybertruck design alongside the edge cutting technology used has resulted in market enthusiasm ahead of the model’s first delivery. The interest is reflected in the number of reservations that have dwarfed Tesla’s (NASDAQ: TSLA) other model deliveries in recent years.
According to data acquired by Finbold, as of May 25, 2021, the estimated Cybertruck pre-orders were 1.08 million for the model introduced in 2019. The figure is more than the 866,750 total vehicles delivered by Tesla in two years between 2019 and 2020.
Last year, the electric vehicle manufacturer delivered 499,550 vehicles, while in 2019, the figure stood at 367,200. Furthermore, Tesla has recorded a steady annual increase in vehicle deliveries, with the figure surging 558.2% between 2016 and 2020.
Why Cybertruck is driving more interest
Several factors are driving the high interest in Cybertruck with design and incorporated technology, topping the motivation to own the model. According to Tesla, the vehicle is built with an exterior shell that is durable and enhances passenger protection. Additionally, the design also has a nearly impenetrable exoskeleton, a stainless-steel structural skin alongside the armored glass.
The massive interest in the Cybertruck also reflects the conditions set by Tesla for reserving the vehicle since customers need to deposit a refundable $100. The amount is affordable, but analysts have remained skeptical about the reservations numbers getting converted into deliveries. In the end, Tesla fans can take the money from their bank account, reserve the Cybertruck and get a refund later.
Upon launching the Cybertruck, Tesla CEO Elon Musk said the company had only envisioned the model to be a North American product. However, demand likely spiked after Musk clarified that they would consider releasing a modified version that suits other international markets.
The model will be shrunk to meet the European market needs after concerns over the truck’s pedestrian-impact protection.
When unveiling Cybertruck, Tesla had not provided a clear production plan with the vehicle still undergoing engineering. However, Musk has since announced the completion of engineering work giving hope to potential buyers the model might be available soon. Furthermore, the construction of factories in Texas and Berlin will potentially ramp up production.
Tesla still facing competition
With the impressive Cybertruck reservation numbers, Tesla is not immune to facing competition along the way. Notably, both General Motors and Ford have announced their plans to venture into the electric truck business. Notably, by the time Tesla begins production, traditional truck drivers might opt for other models from competitors. For instance, Hummer is planning to start production of its model later this year.
At the same time, Tesla has courted controversy after announcing the company had suspended bitcoin payments for vehicles over the asset’s carbon footprint. The move resulted in discomfort among a section of buyers. Some customers reportedly canceled their Cybertruck pre-orders in protest over Tesla’s decision.