Tesla is ramping up the manufacture of its Cybercabs at its Giga Texas factory in Austin ahead of a potential April launch. The company is setting up the production line to churn out hundreds of these vehicles every week.
Recent Developments
Social media posts from the factory this week revealed Tesla loading more than a dozen Cybercabs onto transport trucks. This sighting has generated significant interest among Tesla enthusiasts and potential buyers.
Production and Sales Predictions
Morgan Stanley analyst Andrew Percoco believes that Tesla won’t sell many of these Cybercabs initially. Instead, he suggests the company will deploy them in its own Robotaxi ride-share service. Percoco said it will take time for buyers to “get accustomed” to purchasing cars without a steering wheel.
Slow Production and NHTSA Hurdles
Earlier in February, Tesla revealed the first production version of the Cybercab, priced at $30,000. CEO Elon Musk reiterated the April goal for the Cybercab, saying production will be “agonizingly slow” at first. Despite the slow start, the billionaire’s ambitious target is to produce 2 million cybercabs a year.
Regulatory Approvals
Tesla must secure approval from the National Highway Traffic Safety Administration (NHTSA) to sell the Cybercab, which lacks a steering wheel, pedals, and side mirrors. NHTSA can grant exemptions for up to 2,500 non-compliant vehicles annually, but Tesla has not yet applied. Without an exemption, the company must certify full compliance with federal safety standards, or risk recalls, fines, and potential litigation if the vehicles are found non-compliant.
Market Performance
On a year-to-date basis, Tesla stock declined 6.91%. The company’s stock performance will likely be closely watched as it navigates the production and regulatory challenges associated with the Cybercab.
Key Takeaways
- Tesla is ramping up Cybercab production at its Giga Texas factory
- Analysts predict slow sales due to the vehicle’s unconventional design
- Regulatory approvals from NHTSA are still pending
- Tesla’s stock performance will be closely watched in the coming months