In the face of a sales slowdown and ongoing PR challenges, Tesla is reportedly considering delivering the first batch of Cybertrucks to its employees to mitigate a potential financial setback. With Elon Musk acknowledging a tempered timeline for volume production during the third-quarter earnings call, the initial deliveries of the long-anticipated Cybertruck are anticipated to be directed towards Tesla’s own staff. Analyzing the situation, industry observers suggest that delivering to regular customers could trigger a significant financial recognition, prompting Tesla to prioritize employee deliveries to avoid an estimated $400 million in additional Cost of Goods Sold (COGS) and an EPS impact of approximately -$0.11.
Tesla is currently grappling with a range of challenges, including being caught between “two major growth waves” and facing projections of production growth below its historical guidance. Additionally, recent legal settlements related to Full Self-Driving (FSD) technology and controversies surrounding autonomous driving efforts have added to the company’s woes. Notably, Elon Musk’s recent response to a controversial post on social media has further intensified the PR challenges.
Despite these hurdles, there are signs of optimism in China, with expectations of a potential price increase next week, indicating a potential resurgence in demand for Tesla vehicles in the Chinese market.