Tesla Cybertruck is a mistake turned marketing tool
I think Cybertruck was a mistake for Tesla as it created this gap in growth for the company, but the automaker is making the most out of it as it turns the electric pickup truck into a marketing tool.
Tesla never had a dud. All its vehicle programs were successful in their own rights, some even wildly successful.
It’s too early to say if the Cybertruck is also going to be successful. It is enjoying a large reservation backlog, but it will be interesting to see how the demand holds once the vehicle’s production is ramped up.
But even once it is ramped up, Tesla is only talking about producing roughly 250,000 Cybertrucks per year.
It’s not nothing, but it also doesn’t significantly move the needle.
In fact, I would argue that Cybertruck has created what Tesla is describing as a break in its “waves of growth.” The first wave was the ramp-up of Model 3/Y and the next one is expected to be the ramp-up of Tesla’s upcoming next-generation vehicles starting in late 2025.
Tesla used to grow deliveries at a rate of roughly 50% per year, which is absolutely incredible for a major automaker.
Now, the growth has slowed greatly (20% as of last quarter), and Tesla has confirmed that it should be down throughout 2024. That’s obvious. Tesla’s Model 3 and Model Y are almost maxed out, and the automaker only has Cybertruck to add to the lineup in 2024.
I would argue that Tesla would have been better off focusing its resources on its next-gen vehicles, the “$25,000 Tesla” and “robotaxi” throughout the last few years, to shorten the gap between its two growth phases.
If Tesla had brought the next-gen vehicles to market instead of the Cybertruck, it would have likely cut this break in growth by over a year.
Now, we likely can’t expect Tesla to return to 50% growth in deliveries until at least 2026.
But I have to admit, Tesla is making the best out of it. Again, I’m not saying the Cybertruck can’t be a successful vehicle program in itself. It’s too early to tell, but it could very well become one.
The production version of the Cybertruck is disappointing in many ways. It’s way more expensive than originally announced, it has a shorter range and requires an “extended range” battery pack that takes up a big part of the bed to get meaningful towing range.
On the other hand, it also introduces some cool technologies, like steer-by-wire and a 48-volt electrical system, and albeit polarizing, the novel design has attracted a lot of fans – and Tesla seems to be doubling down on that.
Hate it or love it, the Cybertruck is getting a ton of attention, and Tesla is utilizing it.
We reported that the unveiling of the Cybertruck alone already helped the sales of Tesla’s other vehicles by bringing people who were hearing about or getting interested in Tesla for the first time into the stores.
The Cybertruck rollout was also unique for Tesla. Before even starting deliveries, Tesla started to bring the vehicle in showrooms around the US. That’s unprecedented for Tesla. Again, it brought people into the showrooms, where Tesla tried to sell them its other electric vehicles.
Now, you can argue that it is still useful to have the Cybertruck in showrooms for reservation holders to come see it in person before moving forward with their orders.
However, Tesla even brought the Cybertruck to showrooms in Canada, where Tesla has yet to open orders.
Furthermore, the automaker brought Cybertruck on a tour in China and Japan, where we have no idea when or even if the Cybertruck will be available. The goal is again to bring people in stores and sell them Tesla’s other vehicles.
Therefore, it’s clear that Tesla is using the Cybertruck as a marketing tool, and at least so far, it definitely has a bigger impact that way than on its own with deliveries.
Electrek’s take
Again, I’m not saying that Cybertruck is a bad vehicle program. All I am saying is that it looks like it was a mistake to focus on it rather than Tesla’s next-generation vehicles.
It looks like for Tesla’s mission and shareholder value, it would have been better off spending the resources on bringing the next-gen vehicles to market a bit sooner. The difference over a few years would likely have been in the hundreds of thousands of vehicles.
Now, to be fair, even if Tesla’s growth is only about 15-20% this year, it’s still impressive for a major automaker entering the year with a production rate of about 2 million vehicles per year.
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The cheapest and smallest Volvo EV is off to a hot start. After only five months on the market, the Volvo EX30 topped BMW’s Mini in Europe’s small premium segment as sales continued surging.
Volvo EX30 passes Mini in EU sales
Since EX30 production began in Zhangjiakoui, China, last fall, Volvo’s compact EV is already a top seller.
Despite its small size, the Volvo EX30 is having a significant impact. According to global data collection firm Dataforce, Volvo’s sales rose 27% last month in Europe. With over 32,800 models sold, Volvo propelled to number 14, up from 17 last year.
The EX30 accounted for the majority of the growth. Volvo’s EX30 topped the small premium segment, surpassing BMW’s Mini by 1,029 in sales.
Volvo’s EX30 is the third-best-selling EV in Europe through May, with 30,195 models sold. The Tesla Model Y took the top spot with over 79,100. Tesla’s Model 3 was second with 38,863 units sold, up 38% YOY.
The growth comes after the EU revealed plans for additional tariffs on EVs made in China last week. Volvo’s deputy CEO, Bjorn Annwall, criticized the decision, saying it would only hurt the buyer.
Starting at around 36,000 euros ($38,500), Volvo’s EX30 is one of the most affordable EVs on the market.
Although Volvo had already planned to begin EX30 production in the EU in 2025, Annwall hinted the US-bound model would likely come from Belgium.
Volvo plans to introduce the EX30 in over 90 countries by the end of the year. In the US, the EX30 starts at $34,950. It’s available in two powertrains, a single-motor extended range, and a twin-motor performance, offering up to 275 miles of range.
As you would expect from Volvo, the EX30 has the latest safety and connectivity tech. It includes Google built-in with Apple CarPlay as standard.
Electrek’s Take
Volvo EX30 sales surging in Europe is no surprise as demand for affordable EVs continues climbing. Most automakers are planning or have already launched low-cost EVs.
Kia opened orders for its EV3 in Korea, starting at $30,700 (KRW 42.08 million). Next year, Kia is expected to launch the EV4, an entry-level electric sedan, starting at around $35,000 (see a video of it captured in the wild).
Volkswagen finished design work on its ID.2all, a $27,000 (25,000) euro electric car. The production ID.2all is expected to debut later this year, with sales kicking off in 2025.
Hyundai, Ford, GM, BMW, Nissan, and others have all revealed plans to launch more affordable EVs over the next few years.
Volvo’s early commitment to go all-electric is already paying off as the EX30 takes market share.
Source: Automotive News
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The Italian luxury sports car maker is preparing to launch its first EV. Ferrari’s new e-building opened its doors on Friday with Italian President Sergio Mattarella in attendance. The new plant, entirely powered by renewable energy, is set to launch the first Ferrari EV sports car.
Ferrari’s first fully electric sports car will be built at the new e-building. CEO Benedetto Vigna said the new factory will “light up” Ferrari’s future.
The e-building will enable Ferrari to continue to “audaciously redefine the limits of what’s possible.” Ferrari’s first EV sports car will be built at the facility alongside its next-gen hybrids and ICE vehicles. The facility will also produce batteries, electric motors, and inverters for Ferrari’s EV.
Ferrari has invested roughly $214 million (200 million euros) to make the facility a reality. After opening the doors Friday, Ferrari said the plant will help improve efficiency and flexibility.
The building will be entirely powered by renewable energy. Over 3,000 solar panels on the roof produce 1.3 MW of energy. Ferrari said that by reusing rainwater and energy in the production cycle, 60% of the energy used for battery and motor testing would be recovered and redirected.
Ferrari’s new e-building opens with first EV coming soon
The new inauguration comes after sources told Reuters this week that Ferrari’s first EV sports car will cost at least $535,000 (500,000 euros).
According to the sources, Ferrari is already developing its second electric vehicle. It’s still in its early stages but will be built at the new e-building.
Ferrari launched its first plug-in hybrid last year, the SF90 Stradale, as it electrifies the brand. By 2026, Ferrari aims for EVs and PHEVs to account for 60% of sales.
The first fully electric Ferrari is expected to be revealed by the end of the year. Check back soon for more info.
Meanwhile, luxury rival Lamborghini revealed its first electric car, the Lanzador EV, last August (check out Lamborghini’s first EV here). Lamborghini is expected to launch the Lanzador in 2028.
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Environment
Spy photos hint at Xiaomi’s quick encore to the SU7 EV to compete against the Tesla Model Y
It’s only been six months since Xiaomi Automobile launched its first-ever BEV – the SU7. Following early success, Xiaomi has been developing a second model, and spy images from local media outlets in China have given us a (camouflaged) glimpse at the EV’s exterior design.
Xiaomi Automobile is the EV-centric arm of one of China’s largest smartphone and electronics manufacturers, founded three years ago. After following much of its surprisingly quick and encouraging process in BEV development, Xiaomi launched its flagship SU7 EV in December of 2023, garnering an impressive number of orders from Chinese consumers loyal to the parent brand.
The infant EV model received over 50,000 orders in the first 27 minutes of going on sale, creating a waitlist of up to seven months. This incited Xiaomi Automobile to restructure its production strategy to manufacture and deliver more SU7s than initially planned to keep up with growing demand.
After just 32 days of production, Xiaomi celebrated its 10,000th SU7 build. By May 2024, we reported the young automaker was already developing a second all-electric model to compete against the globally popular Tesla Model Y.
Most recently, local media outlets in China have captured spy photos of what appears to be Xiaomi’s new EV – a sleek SUV coupe.
Spy images show a sleek new Xiaomi coupe SUV EV
Local media outlet Xchuxing posted the spy images seen above, which appear to be the public’s first glimpse at Xiaomi’s next EV. The report also states the new model is a coupe SUV with a design similar to the Ferrari Purosangue and is expected to be released sometime in 2025.
These details align with our previous reports on Xiaomi’s second EV, which is expected to continue competing against Porsche and, in this instance, Tesla.
As you can see from the spy images, the covered Xiaomi EV has a LiDAR sensor on its roof, expected to be the same as its SU7 sibling, to enable the automaker’s NOA (Navigate on Pilot) ADAS.
The rear is larger than the SU7 sedan but appears to feature the same tail light design, further hinting that these spy images are, in fact, Xiaomi’s next EV. We will know more once the Chinese automaker publicly confirms the new model, hopefully alongside some non-camouflaged images.
However, from what we’ve seen so far, it looks sharp. We hope to learn more soon and report back.
Credit for all images: xchuxing.com
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