Tesla’s Q3 2023 earnings call was understandably dominated by the Cybertruck, with several investors and analysts asking mostly production-related questions about the electric truck.
Elon Musk said he wants to “temper expectations about the Cybertruck,” noting that “it will take a year to 18 months before it is a significant, positive cash flow contributor.” He blamed the product’s unique complexities for the slow production ramp.
Fortunately, Tesla’s next-generation platform, which will underpin the so-called $25,000 entry-level EV and the robotaxi, will be much easier to build, according to Musk.
Asked if a similar ramp to the Cybertruck should be expected, Musk noted that the next-generation platform is more conventional than the Cybertruck because there are simply not as many new things with the next-gen vehicle.
“The high-volume, low-cost smaller vehicle is actually much more conventional,” Musk said. “We’re doing everything as possible to simplify the next-generation vehicle in order to achieve a units-per-minute level that is unheard of in the auto industry.”
Tesla‘s head honcho also made some remarks about the design of the next-generation vehicle, which he described as “cool” and “beautiful,” but “utilitarian.”
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“It will be cool, but it’s utilitarian. It’s not meant to fill you with awe and magic, it’s to get you from A to B. Still beautiful, but utilitarian.”
Asked for an update on the timing of the next-generation vehicle, Musk noted that Tesla will not be providing information at this time.
Interestingly, Tesla reiterated its goal of building the next-gen vehicle at the new Giga Mexico plant, noting that it is working on infrastructure and factory design in parallel with the engineering development of the new product that will be manufactured there.
Tesla did not say anything about its alleged plans to change the initial build location for the next-generation EV from Mexico to Austin, as reported in Walter Isaacson’s ‘Elon Musk’ biography.
Elon Musk did say Tesla is taking a cautious approach with the new factory, though. “In Mexico, we’re laying the groundwork to begin construction, but I think we want to just get a sense of what the global economy is like before we go full tilt on the Mexico factory.”
He added that he is “worried about the high interest rate environment that we’re in,” noting that if interest rates remain high or they grow even higher, it will be that much harder for people to buy a car, since most buyers use some form of financing when purchasing a vehicle.
