Tesla Accelerates Tri-Motor Cybertruck; Pushes Back Rear Wheel Drive

This just in: Tesla has updated the delivery estimates on the Cybertruck order page.

Originally Tesla had planned to produce the single motor and dual motor variants of the truck in Late 2021, with the high-end tri-motor variant not enterting production until Late 2022 –– 1 year later. This would have contrasted with how Tesla started producing the Model 3: Begining with the high end and working down. But that all changed when Tesla saw the orders pour in:

With a surprisingly large number of reservation holders opting for the most expensive Cybertruck variant, pushing back the less popular single motor truck will make a lot of people happy.

It also works out better financially for Tesla. People will be dying to get one of the first Cybertrucks that rolls off the line, and you’d rather have impatient people buy up (go for a more expensive model than they would have) than buy down (go for a more affordable model than they otherwise would have to get the product sooner).

With the mix Elon provided, the average selling price of a Cybertruck is about $60,000 (assuming 50% ultimately select full self driving). However, if Tesla had only produced the single and dual motor variants their average selling price in the first year would have been only around $50,000.

When Tesla first starts ramping up production, they will have to absorb the large fixed costs of the Cybertruck production facilities while producing comparatively few units. Having access to a larger volume of orders at a higher price is clearly preferable to the company from a financial standpoint. Most importantly, it means we get the 500 mile Cybertruck one year sooner. People who were looking to buy the $40,000 truck won’t be happy… but they’ll have some time to save up for the dual motor.

Well, I don’t care what Norman thinks.

500 mile Cybertruck starts production Late 2021. Single motor pushed back to Late 2022.

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