Cybertrucks would ‘literally cost a million dollars apiece or more’ if Tesla starts production now

Elon Musk said each Cybertruck “would literally cost a million dollars apiece or more” if Tesla started producing the futuristic vehicle now, adding that production is now being delayed until sometime in 2022.

The statement was made during Tesla’s second quarter earnings call Monday, highlighting the company’s struggle to ramp up production of its next-generation 4680 battery cell that will be used in the Cybertruck.

At this time, Tesla could only produce the Cybertruck in extremely low volumes.

“There’s a reason you do things with volume production, which is to achieve economies of scale that lower costs,” said Musk, who also told Tesla’s suppliers to call him at midnight and 1 a.m. to make up for the battery cell shortage. unload.

Drew Baglino, senior vice president of powertrain and power engineering, noted during the conversation that the Cybertruck is still in alpha phase and only the basic technical architecture has been completed, but Tesla plans to enter the beta phases later this year.

Baglino also said Tesla’s “following cell suppliers to double their production by 2022.”

Musk’s announcement leaves about 1 million pre-orders, each making a $100 deposit, waiting in limbo as Tesla said the Cybertruck would hit the market this year when it was first unveiled in 2019.

Scroll down for video

Elon Musk said each Cybertruck would “literally cost a million dollars apiece or more” if Tesla started producing the futuristic vehicle now, noting that production is being delayed until sometime in 2022.

Tesla’s Cybertruck, Semi and Model Y will all be equipped with the new 4680 battery cell, which was unveiled at the company’s Battery Day last September.

And while the company has “successfully validated battery performance and life,” it still has more work to do to ramp up production.

“It’s hard to say when the last of the technical challenges will be solved,” he said, referring to its 4,680 battery cells.

He said Tesla has a backup plan to use its existing 2170 batteries, adding that its battery cell suppliers next year production would double.

At this time, Tesla could only produce the Cybertruck in extremely low volumes.

At this time, Tesla could only produce the Cybertruck in extremely low volumes. “There’s a reason you do things with volume production, which is to achieve economies of scale that lower costs,” said Elon Musk (pictured)

Instead of putting the Cybertruck at the top of the list, Tesla puts the Model Y front and center.

The crossover will be built this year at both the Giga Texas and Giga Berlin facilities.

“The pace of the respective production ramps will be affected by the successful introduction of many new product and manufacturing technologies, ongoing supply chain challenges and regional licensing,” Tesla wrote in a statement. presentation shared during the call for profit.

“In order to better focus on these plants, and due to the limited availability of battery cells and global supply chain challenges, we have postponed the launch of the Semi-truck program to 2022. We are also making progress with the industrialization of Cybertruck, which is currently underway. slated for production in Austin after Model Y.”

Not only is the battery shortage a problem, Tesla is also plagued by the global chip shortage, another factor that has pushed back production of the Cybertruck and Semi.

The announcement leaves about a million pre-orders waiting in limbo as Tesla said the Cybertruck would hit the market this year when it was first unveiled in 2019 (pictured)

The announcement leaves about a million pre-orders waiting in limbo as Tesla said the Cybertruck would hit the market this year when it was first unveiled in 2019 (pictured)

‘People sometimes say: why don’t you just build a chip fab? Okay. Well, okay,” Musk said during the conversation.

“That would take us 12 to 18 months, even if it were lightning.

‘So it’s not like you can just make a chip shop. It’s like, yeah, just make a quick chip shop.”

However, the chip shortage didn’t stop Tesla when it came to its current vehicle offerings.

Musk said the company was able to replace alternative chips and then write the firmware in a few weeks.

‘It’s not just a matter of changing a chip. You also have to rewrite the software,” he continued.

“So it’s been an incredibly intense effort to find new chips, write new firmware, integrate with the vehicle and test to keep production going.”

.