Weekly News

Cybertruck Deliveries To Start Next Month

Tesla announced that Cybertruck deliveries will kick off on November 30. The company highlighted that the pilot production of the vehicle is underway at Gigafactory Texas, ensuring that initial deliveries remain on schedule.

Perhaps the most surprising element of Tesla's announcement is their installed annual vehicle capacity. Tesla states it has already established a production capacity that can churn out over 125,000 Cybertrucks annually at Gigafactory Texas. While these figures are certainly ambitious, there's skepticism around whether Tesla can immediately meet such production numbers. The capacity might indicate the potential of their production lines, but it might take a while before they can maximize this output.

Tesla also revealed the Cybertruck’s powertrain configurations through its VIN decoder submission to the National Highway Traffic Safety Administration (NHTSA).

Tesla Stumbles after Q3 Earnings

After releasing their Q3 results, Tesla shares ended the week down 15%. Elon took a cautionary stance to the economy as Tesla grapples with the challenges posed by a rising interest rate environment. Tesla’s primary goal has been to make its vehicles more affordable to account for the increased pressure on consumers financing purchases with higher interest rates, but the price drops have not translated to a significant jump in sales.

Earnings Highlights:

• Earnings: $0.66 / share adjusted (Expected: $0.73 / share)

• Revenue: $23.4 billion (Expected: $24.1 billion)

Remarkably, this is the first instance since Q2 2019 where Tesla has not met the expected benchmarks for both earnings and revenue.

Tesla also unveiled plans for a new factory, destined for Mexico. Before the factory goes “full-tilt", Elon noted that Tesla’s focus will be to continue to bring down the price of its cars.

Tesla's marketing strategies have drawn public attention as the company has been notorious for not advertising. While Elon mentioned that Tesla is actively advertising, he questioned the value of promoting a car that remains out of reach for many due to its price. Investors have pushed Tesla to increase marketing spend rather than pursuing aggressive price drops.

NACS Almost Universal - Toyota Makes The Switch

Toyota is the latest manufacturer to announce its transition to Tesla's North American Charging Standard (NACS) for future electric vehicles, a move that also encompasses its luxury brand, Lexus. By 2025, Toyota and Lexus owners will gain access to over 12,000 Tesla Superchargers throughout North America.

As you may know, this shift towards NACS isn't unique to Toyota and Toyota is one of the last movers. After Ford notably announced its switch earlier this summer, other automotive giants like General Motors, Mercedes-Benz, Nissan, and Hyundai also made similar announcements, with most targeting a 2025 transition for their new EV models.

Charging service providers, such as ChargePoint and Electrify America, are following suit. As they adopt the emerging NACS, it's rapidly becoming recognized as the standard.

Historically, Toyota has been a subdued player in the EV market. However, their significant investments in solid-state battery technology indicate a shift in this stance. With the leadership of its new CEO, Koji Sato, Toyota is venturing into a robust EV strategy. Plans include a distinct BEV platform, novel manufacturing techniques, and the potential introduction of up to 10 new EV models for both Toyota and Lexus by 2026.