Sunday, Dec 22, 2024

Tesla's Cybertruck is Elon Musk's toughest gambit yet

Elon Musk will learn a lot when the Cybertruck joins the pickup truck market.
  • Tesla is entering an already crowded segment of electric pickup trucks.
  • The Cybertruck design is not friendly to existing truck add-ons.
  • Musk might have to learn to play in the larger truck ecosystem.

Tesla CEO Elon Musk has a learning curve ahead of him later this year when the Cybertruck finally hits customers' driveways.

Musk is making further moves to thrust Tesla into the mainstream by entering the US market's lucrative pickup truck market. Analysts and industry experts say the futuristic truck is poised to disrupt this tried-and-true segment, but could also throw Musk for a loop.

Fierce loyalty among truck buyers makes the segment notoriously difficult to break into, while common practices like brand partnerships to promote special edition trucks rub up against Musk's preference to keep everything in-house at Tesla.

It's also a tough time to release any new product, especially an electric pickup truck. For the first time, Tesla will not be the first-mover in its segment, entering an already crowded electric pickup market occupied by stalwarts like Ford and GM as well as popular startup Rivian.

While Cybertruck is poised to go after a more unique set of pickup truck buyers, the company could face more trouble than it's used to converting existing truck buyers to the brand.

Cybertruck will also face a tightening new vehicle market, with customers who are spending less on unnecessary purchases and gravitating toward more practical vehicles.

"The new vehicle market just isn't what it was even six months ago, and certainly, not what it was a year to two years ago when we first saw the Cybertruck," Karl Brauer, an executive analyst for iSeeCars told Insider.

Elon and the aftermarket

One thing that sets the pickup truck market apart from the rest of the auto industry, and part of what makes it so lucrative, is its relationship with the aftermarket. These are purchasable add-ons like mudflaps, light bars, and bed caps.

Pickup truck buyers are among the most likely to personalize their vehicles with aftermarket parts, which has created an entire sub-industry of both manufacturer-supported and third-party add-ons for trucks.

A recent peek inside the Cybertruck showed that it's already a relatively bare-bones truck, making it a candidate for a lot of personalization. But the way the Cybertruck is designed makes it hard for these types of add-ons to fit the truck, Brauer said.

"I would expect the aftermarket to scramble once the Cybertruck comes out, but there still won't be anything there when the vehicle first launches," he said.

Musk is also not typically one to collaborate with other companies on features for his vehicles. It's a regular practice for legacy car companies to give aftermarket companies early access to new trucks so they can combine forces on lucrative accessories.

"Tesla is a very closed company - they don't work with dealers or their supply base in the same way other car companies do," Brauer said. "The nature of trucks is to work within this network of aftermarket companies out there - it will be interesting to see if Elon plays along."

Read the original article on Business Insider
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By: [email protected] (Nora Naughton)
Title: Tesla's Cybertruck is Elon Musk's toughest gambit yet
Sourced From: www.businessinsider.com/tesla-cybertruck-elon-musk-has-a-lot-to-learn-in-pickup-market-2023-7
Published Date: Mon, 21 Aug 2023 20:13:24 +0000

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