Tesla has announced that its Cybertruck has reached a positive gross margin earlier than expected, marking a crucial achievement for the electric vehicle manufacturer. This milestone comes less than a year after the vehicle’s initial delivery in November 2023.
According to Tesla’s Q3 Earnings Shareholder Deck, the company has successfully scaled up Cybertruck production at its Gigafactory Texas facility, with an annual production rate now exceeding 125,000 units. This rapid achievement of profitability is particularly noteworthy in the electric vehicle industry, where many manufacturers struggle to turn a profit even after years of production.
The company’s success can be attributed to strong customer demand and Tesla’s substantial manufacturing capacity, which totals over 2,350,000 vehicles annually across all models. This manufacturing prowess has given Tesla a significant advantage over its competitors in the electric vehicle market.
The announcement exceeds Tesla’s earlier projections, as the company had previously stated in Q2 that the Cybertruck was “on track to achieve profitability by end of year.” Having reached this goal with more than two months remaining in 2024 demonstrates Tesla’s strong execution in scaling production and managing costs.
The news has been well-received by investors, with Tesla’s stock rising more than 7 percent in after-hours trading. While the company slightly missed its revenue targets, its robust margins, particularly with the Cybertruck’s performance, have bolstered investor confidence.
