Tesla has announced that its all-electric Cybertruck has reached a positive gross margin for the first time, a significant milestone in the company’s goal of making the vehicle profitable by the end of 2024. The automaker began ramping up production of the Cybertruck last year, with deliveries commencing in November.
To achieve profitability, Tesla needs to ensure that its production costs are lower than the selling price of the Cybertruck, a challenging task that necessitates scaling operations and meeting customer demand. However, demand for the Cybertruck appears strong, with production and deliveries continuing to progress smoothly, according to Tesla’s Q3 Earnings Shareholder Deck.
In the report, Tesla stated, “Cybertruck production increased sequentially and achieved a positive gross margin for the first time.” The company has set its annual production rate for the pickup at over 125,000 units, with manufacturing taking place at Gigafactory Texas.
This achievement is particularly noteworthy, given that the Cybertruck was first delivered less than a year ago. Many electric vehicle manufacturers have struggled to attain profitability, often lacking the delivery volumes and manufacturing capacity that Tesla possesses. The automaker anticipates an installed annual vehicle capacity exceeding 2,350,000 units, as outlined in its shareholder deck.
In Q2, Tesla had previously detailed its plans for the Cybertruck’s production ramp, asserting it was on track to achieve profitability by the year’s end. With over two months remaining in 2024, Tesla has already accomplished this goal.
Following the announcement, Tesla’s stock rose over 7 percent in aftermarket trading, driven by the company’s strong quarterly performance, which, despite slightly missing revenue expectations, showcased robust margins.
