Production challenges for Cybertruck are nightmares for Elon Musk's Tesla
Cybertruck is one of the most ambitious models for Tesla. The EV is already encountering production hurdles before it hits the market. Elon Musk has described the electric pick-up truck as a step back in Tesla's carmaking strategy, likening it to the Model X SUV, which never achieved high production volumes due to its complexity. Factors such as the Cybertruck's stainless steel body, high-voltage architecture, and reliance on in-house battery cells contribute to these challenges.
Shaping stainless steel panels is an expensive and complicated process
The Cybertruck's ultrahard stainless steel alloy body, also utilized by SpaceX for its Starship launch vehicle, has proven difficult for Tesla to work with. Although stainless steel is corrosion-resistant and doesn't require painting, it can be expensive and challenging to shape and weld. Additionally, it tends to be heavier than the steel typically used for car and truck bodies. Musk has demanded that all vehicle components be designed and built with sub-10 micron stainless steel sheets.
High-voltage architecture involves risk, requires critical alterations
Tesla revealed plans to implement an 800V architecture for the Cybertruck, citing cost savings for heavy vehicles. This is a first for Tesla's consumer vehicles, although Porsche and Hyundai have already introduced 800V systems with their Taycan and IONIQ 5, respectively. However, this change comes with risks and costs, as Drew Baglino, Tesla's Senior Vice President of powertrain and energy, explained. The architecture necessitates alterations to the charging infrastructure and vehicle system.
Battery production delays the production of the EV
Another challenge for the Cybertruck is its dependence on an in-house-developed 4,680-cell battery pack. These larger, thicker cells were promoted by Tesla in September 2020 as providing a 16% range increase. However, the company has had difficulty scaling up the battery production, which has delayed products like the Cybertruck and Semi. Deutsche Bank analysts reported in November that Tesla is still producing the Semi in low volumes, exclusively for PepsiCo, its initial customer.
Musk's outlook on Cybertruck production
Musk estimates that it will take 12 to 18 months of "blood, sweat, and tears" for Tesla to overcome the Cybertruck's production challenges. He also stated that Tesla is unlikely to achieve an annualized production rate of 250,000 Cybertrucks until sometime in 2025. Regarding the vehicle's groundbreaking design and innovation, Musk said, "You have to invent not just the car, but the way to make the car. So the more uncharted the territory, the less predictable the outcome."
