The Tesla Cybertruck has a massive preorder count of well over 1 million vehicles, but that is not stopping some from labeling it a “cult car” that will only be produced in limited volumes and reserved for the company’s superfans.
Adam Jonas of Morgan Stanley came out with a new note this morning that hints the Tesla Cybertruck will only be a limited production vehicle reserved for the most diehard fans of the electric automaker. Questioning its practicality as an everyday vehicle, Jonas believes that its futuristic design and “emblematic” image is something that only resonates with the Tesla faithful.
“It may be more of a ‘side-show’ to the Tesla story today, Jonas wrote in a note to investors, according to Investing.
Jonas said these ideas came after speaking with clients, which led him to believe that there may be enough of a reason to manage expectations of what could actually be produced and delivered by the company.
“The truck is emblematic of the company and the risks it is willing to take to push the envelope and reinvent so many aspects of what it means to be an auto manufacturer,” he writes. “We feel the Cybertruck carries more value in a cultural/zeitgeist sense than in a direct economic sense. At the same time, we encourage our readers to ask themselves: how many Cybertrucks can roll up to a parent-teacher conference or youth soccer match at the same time before losing some of that indescribable…something?”
Jonas believes Cybertruck production will be closer to only 50,000 units per year, despite the massive number of preorders the vehicle has accumulated since being unveiled in November 2019.
Tesla has been preparing for the initial production stages of the Cybertruck for some time, as manufacturing equipment has been spotted at Gigafactory Texas, and the automaker continues to list job postings related to the first manufacturing processes of the vehicle.
CEO Elon Musk said some Cybertruck units will be produced this Summer, but volume production is not expected to begin until sometime next year:
“We do expect production to start sometime this summer, but I always kind of downplay the start of production because the start of production is always very slow.”
Tesla stated in its Q4 2022 and Full Year Earnings Shareholder Deck that Cybertruck production “remains on track to begin” in 2023.