A recall from Tesla has given us a rare look inside the electric car’s balance sheet.
On Wednesday, nearly 4,000 Cybertrucks were recalled due to an accelerator defect that causes them to jam when you press the accelerator, increasing the risk of a crash.
This applies to all trucks sold by Tesla since it was introduced to the market in November.
This recall requires owners to bring their vehicles in for physical repairs, unlike most products that Tesla can fix with over-the-air updates.
The company does not itemize unit sales by model in its quarterly reports. In other words, this recall represents a rare glimpse into the sales numbers of Tesla CEO Elon Musk’s pet project.
The recall comes amid a turbulent week for the company that included layoffs, price cuts and a dispute over Musk’s $56 billion salary.
USA TODAY contacted Tesla on Monday about the recall but did not receive a response.
How many Cybertrucks has Tesla sold?
The 3,878 Cybertrucks affected by the recall represent all vehicles the company has delivered since the long-awaited truck went on sale in late November.
According to InsideEVs, in July 2023, an unofficial reservation tracker suggested there were approximately 1.9 million reservations in existence at the time. The reservation fee is $100, which is refundable up to delivery if the customer changes their mind.
Then in December, the company began inviting customers to pay a $1,000 deposit to reserve a truck.
How do Cybertruck sales compare to other electric trucks?
While the delivery numbers revealed by the recall may not be surprising, the near baseline vehicle sales figure of 4,000 makes Tesla a strong contender in the domestic electric truck market.
Earlier this month, Ford reported that 7,743 of its F-150 Lightning electric trucks were sold in the United States in the first quarter of 2024.
General Motors announced that it has sold 1,688 Hummer EVs in Japan.
Rivian, which sells trucks and SUVs, reported that it had delivered 13,588 vehicles, but did not provide a breakdown by model. Motor1 reported that the company sold 2,399 of his R1T trucks.
Cybertruck is key to Musk’s vision
Musk suggested electric trucks will be a key part of the company’s future.
“We’ll probably make $250,000 a year, maybe more, but again, that really depends on what the demand is,” Musk said at the company’s 2023 annual shareholder meeting. mentioned and added later. The company could deliver up to 500,000 trucks.
Elektrek reported that suppliers were asked to plan annual production of at least 375,000 Cybertrucks.
Ming-Chi Kuo, an analyst at TF International Securities, wrote on his Medium page in October that he believed the company could deliver 240,000 to 260,000 Cybertrucks by the end of 2025.
Analysts see Cybertruck as ‘another black eye’
Analysts said the recall is the latest factor damaging the company’s brand value and adds to a series of negative press reports.
“This is another round of scrutiny for Tesla and adds to the turmoil for Mr. Musk,” Dan Ives, senior equity analyst at Wedbush Securities, told the Guardian. It doesn’t look good. ”
The chaotic week surrounding the recall seemed to crystallize larger headwinds surrounding the company.
Some of these headwinds have been self-inflicted, including Mr. Musk’s erratic behavior, his control of social media platform X, formerly known as Twitter, and questions about the safety and delays surrounding the company’s fully self-driving technology. is.
Tesla’s electric vehicle position is also threatened by increased competition, particularly from Chinese automakers, and a downturn in the electric vehicle market overall.
The Cybertruck’s stumbles haven’t helped the company’s perception, but analysts’ concerns about the business extend beyond the angular vehicle.
“While it is commendable that it has become the charging network of choice for many U.S. EV manufacturers, energy generation and storage revenue growth has stalled and service gross margins remain in the low single digits. ” wrote Sean Williams. For The Motley Fool. “Tesla’s sales and profitability depend on its ability to sell and lease EVs, and this segment is currently under severe pressure.”
tesla stock price
Tesla stock closed Monday down 3.4% at $142.05.
The company is scheduled to announce its first quarter results after the market closes on Tuesday.
