'Over 1 Million' People Wanted TESLA Cybertruck. Where Are They?

One of the staggering things the latest Cybertruck recall has revealed—other than Tesla’s use of the wrong glue—is that Elon Musk’s company appears to have sold 46,096 of these 7,000-pound electric pickups since customer deliveries began a little over 14 months ago. This is far fewer sales than Musk predicted for the Cybertruck just weeks before the roll-out—he told investors that Tesla would soon sell 250,000 Cybertrucks per year. On an earnings call a month before the November 2023 launch of the production vehicle, Musk boasted that Tesla had bagged “over 1 million” Cybertruck reservations and that “demand is off the charts.” “Reservationists” initially paid $100 to join the queue, a refundable deposit later raised to $250. Car companies often open wait lists for models expected to outstrip supply, but most auto executives don’t expect that all of those who lodge deposits will follow through.“The automotive industry aims for a conversion rate of around 2 to 16 percent [on reservations],” Stephanie Valdez Streaty, director of industry insights for car tech firm Cox Automotive, tells WIRED. By that reckoning, Tesla’s conversion rate is just under 5 percent. That’s at the lower end of the conversion scale, but many experts, used to Tesla’s stratospheric sales, might consider that a flop. Analysts generally don’t treat the world’s richest automaker like a regular car company. Its stock trades at many times earnings, valuing it multiples higher than companies that sell more cars. If manufacturing capacity is any gauge of the sales numbers that Tesla was expecting, then the company must be sorely disappointed because the Texas Gigafactory, where the Cybertruck is made, currently has the capacity to build more than 125,000 of the pickups per year. But, according to a Business Insider report from January, poor Cybertruck sales led to workers being taken off the “Cyber” production line and moved to a Model Y line. Tesla’s current elevated worth is based not on its actual sales, but on predicted sales of yet-to-be-launched robotaxis and humanoid Optimus robots, which—like the Cybertruck, slated to arrive three years before it went into production—could be several years away from being mass produced. “My predictions have a pretty good track record,” Musk told Tesla staff at an all-hands meeting on March 20, but none of those present dared to ask him whether he had predicted the anti-Musk backlash that is tanking Tesla sales around the world. And for all Musk’s bluster at the staff meeting that Tesla is “by far the most innovative company in the car industry,” it really isn’t. Chinese automakers such as XPeng, Nio, and Li Auto are far ahead of Tesla on autonomous driving and other technologies. Source