Tesla’s Cybertruck Triumphs as the Third Best-Selling EV in America

Tesla’s Cybertruck Triumphs as the Third Best-Selling EV in America

Tesla’s Cybertruck has emerged as a formidable force in the electric vehicle market, securing the third spot in sales for the third quarter of 2023. This impressive achievement marks a significant milestone for Tesla, surpassing all other EVs produced by non-Tesla manufacturers. Only Tesla’s own Model 3 sedan and Model Y SUV outsold the Cybertruck during this period.

Dominating the EV Landscape

Despite being offered initially in its most expensive trim, the Cybertruck’s success highlights the challenges faced by competing automakers like Ford and General Motors in capturing market share in the burgeoning EV segment. According to data from automotive research firm Kelley Blue Book, the Cybertruck registered an impressive 16,000 sales in the third quarter. Ford’s F-150 Lightning electric pickup truck, despite targeting a similar market segment, fell short with approximately 7,000 units sold during the same period. Similarly, the automaker’s Mustang Mach-E SUV managed to sell over 13,000 units. General Motors, while showing signs of early progress with its Blazer and Equinox EVs, sold only around 32,000 electric vehicles in total last quarter. Rivian, a niche EV manufacturer, delivered approximately 3,800 units of its R1T electric pickup truck.

Profitability and Revenue Growth

Tesla’s financial results for the third quarter underscore the Cybertruck’s contribution to the company’s profitability. The electric pickup generated a positive gross margin, reflecting the company’s ability to maintain profitability despite rising costs. Tesla reported a revenue of $25.2 billion and a net income of $2.2 billion for the quarter.

Cost-Cutting and Supercharger Expansion

Tesla’s relentless drive to reduce costs continues to impact its profit margins. The company’s cost of goods sold per vehicle has decreased to $35,100, as stated in the shareholder letter. However, cost-cutting measures have not spared the Supercharger network. Tesla reported a meager 20% year-over-year growth in Supercharger stations, its slowest pace of expansion in recent history. This development coincides with Tesla’s decision earlier this year to lay off and subsequently rehire some members of its Supercharger team.

Stock Performance and Future Outlook

The Cybertruck’s success and Tesla’s overall financial performance have had a positive impact on the company’s stock. Following the release of the third-quarter results, Tesla’s stock price surged by over 9% in after-hours trading. Tesla’s ability to retain its dominance in the EV market will hinge on the continued execution of its cost-cutting strategies and the success of its future product offerings. The company’s unwavering focus on innovation and its commitment to sustainable transportation position it well for continued growth in the face of increasing competition.