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HomeAutomotiveElon Musk warns Cybertruck won’t be profitable until 2025.

Elon Musk warns Cybertruck won’t be profitable until 2025.

Elon Musk, the CEO of Tesla, issued a caution on Wednesday on the soon-to-arrive Cybertruck that may sound familiar to those who closely followed the firm during the “production hell” period for the Model 3.

In the third quarter of 2023, the manufacturer of electric vehicles reported revenue of $23.4 billion, a slight rise from $21.4 billion at the same time in the previous year.

For the third quarter in a row, the company’s operating margins decreased, indicating that repeated price reductions have hurt Tesla’s bottom line.

“We are pleased to report that our cost of goods sold per vehicle fell to $37,500 in the third quarter, despite the ongoing optimization of production costs at our new facilities.”, we made the necessary changes in Q3 to enable further reductions in unit costs. In its quarterly financial report released late on Wednesday, Tesla reiterated its long-held belief that an industry leader must also be a cost leader.

Musk stated during a conference call that it will take the soon-to-arrive Cybertruck “18 months before it’s a significant cash flow contributor.”

In the results call, Musk added, “I do want to emphasize that there will be significant obstacles in getting the Cybertruck to volume production and then getting the Cybertruck to cash flow positive—this is simply typical.

Tesla has begun pilot production of the Cybertruck at the Gigafactory in Texas, and initial deliveries are still planned for this year.

To speed up the pace of its AI development, Tesla claimed to have commissioned one of the largest supercomputers in the world, with compute capacity more than doubling since Q2.

“The company’s ever-growing fleet of vehicles provides a rich stream of anonymized video and other data, fueling the continuous development of its FSD Capability features.”

As per the corporation, it intends to increase production as rapidly as possible in order to meet the 50% CAGR target “we began guiding to in early 2021.”

Depending on a variety of conditions, we might grow more quickly or more slowly in various years. We anticipate exceeding the long-term 50% CAGR in 2023 with about 1.8 million vehicles sold, according to Tesla.

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