Elon Musk seems to be digging into some traditional tactics to ramp up demand for Cybertrucks. He’s using his other venture, SpaceX, to deal with smiles and challenges in selling these vehicles.
So, What’s Going On?
According to Electrek, SpaceX is stepping in to help Tesla fix its dilemma with the controversial Cybertruck, which hasn’t been flying off the shelves as anticipated.
Tesla is struggling to reach even 20,000 sales per year, a far cry from Musk’s earlier prediction of 500,000 per year, as noted in Electrek’s breakdown. The resulting inventory situation shows Tesla with a notable surplus of Cybertrucks, despite attempts to reduce production.
SpaceX’s involvement, surprisingly, has led to the purchase of over 1,000 Cybertrucks, and there’s talk that they might double that number. A video circulating from an X user shows a lot overflowing with these vehicles.
With a starting price of around $80,000, SpaceX’s buys could mean an increase in Tesla’s sales ranging from $80 million to $160 million. Not too shabby!
Why This Matters
Electrek emphasizes that there’s nothing legally wrong with Musk’s strategy here, but the fact that he needs to support a lackluster product isn’t great for Tesla—or SpaceX, for that matter.
Investors might have a valid reason to feel uneasy about Musk’s methods here, particularly since SpaceX has been getting substantial government grants, only to use some of that cash to buy critically unsold trucks.
A frustrated user on Electrek put it this way: “In other words, government subsidies meant for the moon missions are being funneled into buying massive trucks that look like trash cans.”
The struggles Musk is facing in selling Cybertrucks illustrate a prevalent issue of selling dreams that don’t come true. Initially, there were over a million reservations for the vehicle, but only about 60,000 of those turned into actual sales.
Electrek attributed this shortfall to disappointment from consumers, who felt they had been misled after Tesla revealed their 2019 model. The overhyped Cybertruck turned out to be pricier, with a shorter range and fewer appealing features than initially promised.
What’s Next for Musk?
Ultimately, Musk has plenty of freedom to act as he sees fit, especially when shareholders regard him so highly. They recently approved an extensive pay deal for him even amidst Tesla’s numerous roadblocks and dismal sales results.
For Musk, SpaceX is rapidly becoming his major money factory, and it’s the game-changer that might push his net worth into the trillions.
As long as shareholders don’t hold him accountable, it seems unlikely Musk will stop leveraging his businesses for greater personal gain. One commenter speculated on Electrek that this Cybertruck move is just one of many similar tactics we’ve yet to see.
“You have to wonder what other tricks they used to soften their already dire sales figures in the last quarter,” they noted.
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SpaceX Snags Over 1,000 Cybertrucks Amid Falling Demand: ‘What Else Could They Be Up To?’ appeared first on The Cool Down.
