The rollout of the Cybertruck by American electric vehicle manufacturer Tesla (NASDAQ: TSLA) marked a significant moment in the EV sector, which has struggled to produce models that mirror traditional pickup trucks. The Cybertruck has received what can be considered an impressive reception in North America, as evidenced by the steady growth in sales in the region since the beginning of the year.
Particularly, data acquired by Finbold indicates that in the first quarter of 2024, Tesla sold 2,803 Cybertruck units. The Elon Musk-led firm sold 869 units in January, which grew to 925 in February. The unit sales surpassed the 1,000 mark in March, reaching 1,009. Therefore, the cumulative sales translate to an average of 31 units per day in Q1 2024.
Despite Tesla’s steady growth in Cybertruck sales, the company still lags in the electric pickup category in the U.S. Ford (NYSE: F) sold 7,335 units in the first quarter, followed by Tesla’s Cybertruck at 2,803. Rivian’s (NASDAQ: RIVN) R1T ranks third with 2,737 units, while General Motors’ (NYSE: GM) Chevrolet Silverado EV sold 1,061. The GMC Hummer EV ranked fifth with 272 units.
Implication of Cybertrucks Q1 sales
The growth of Cybertruck sales in the first quarter is encouraging for Tesla, which the slowdown in the general EV market has impacted. Notably, Tesla’s other sales have been declining, and the rising Cybertruck sales could help keep the brand afloat. The market conditions for the EV market have had far-reaching consequences, resulting in a significant plunge in Tesla stock.
The sustained sales partly reflect the buzz created around the Cybertruck since Tesla announced the model. Indeed, the model represents Tesla Motor’s push to infiltrate the traditionally conservative pickup truck segment with plants to ramp up production in the future.
Indeed, the Cybertruck is 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 pickups. Notably, sales are expected to increase, given Tesla’s announcement that it produced over 1,000 Cybertrucks in a single week in April during its earnings report.
It’s worth noting that Musk has signaled that the Cybertruck is likely to become a vital component of the company’s vision. The executive has previously stated that Tesla aims to sell a quarter million units yearly, depending on market demand.
Currently, the company isn’t fretting over the demand for Cybertruck. A prior Finbold report revealed that Tesla Motors was garnering an average of roughly 1,102 Cybertruck reservations daily over the preceding two years, up to August 2023.
Furthermore, the appeal of the Cybertruck can be ascribed to Tesla’s reservation terms, which entail a $100 refundable deposit. Additionally, at some point, Cybertruck pre-orders surpassed Tesla’s total deliveries over a two year period, as of July 1, 2020.
Cybertruck challenges
Yet, the Cybertruck hasn’t been without its share of controversies, sparked by Tesla’s recall of defective units. Notably, nearly 4,000 cyber trucks were recalled due to an accelerator defect that could cause them to become stuck when pressed, heightening the risk of a crash.
In the wake of these concerns, Tesla has issued a vehicle safety report regarding potential crash risks. Within the report, Tesla emphasized its commitment to engineering vehicles “to be the safest cars in the world.” The company aims to achieve this level of safety through a blend of passive safety measures, active safety features, and automated driver assistance systems.
As of Q1 2024, the EV giant claimed that its vehicles using autopilot technology experienced one accident per 7.63 million miles driven, compared to the U.S. average, which is more than 11 times higher.
Undoubtedly, Tesla still has some catch-up within the pickup category, particularly with Ford’s dominance in the space. It’s intriguing to observe how Tesla will navigate this competition.
There’s speculation about potential strategies, including the possibility of price cuts, a tactic Tesla has employed with other models. Should such a move be applied to the Cybertruck, it would signal Musk’s determination to maintain Tesla’s dominance in the U.S. EV market.
Considering the EV market slowdown, attention is on whether Tesla can sustain the current pace of Cybertruck sales. At the same time, it remains to be seen if the recall will affect sales or slow down production.
