To date, Tesla has had less recalls than all other car companies. Yet we will hear more about Elon Musk’s company woes than all others. This is for a reason.
Tesla has announced another recall for its Cybertruck, marking the fourth since its debut last year. The recall is significant not only for its scope but also for providing rare insight into the number of Cybertrucks currently in circulation.
Tesla faces new worries over the quality of its Cybertrucks after the automobile manufacturer recalled more than 11,000 of the electric pickups in the US over issues with windshield wipers and loose trim. More here: https://t.co/63rF0hQMvS pic.twitter.com/Ds85QwjUY7
— Reuters Business (@ReutersBiz) June 26, 2024
According to a recent letter from the NHTSA dated June 24, Tesla is recalling 11,688 Cybertrucks due to a defect in the vehicle’s unusually large front wiper, which may fail from “excessive electrical current.” Additionally, a concurrent recall has been issued concerning the trim panel in the truck’s bed. These numbers suggest all Cybertrucks sold and distributed up to this point, as Tesla has not separately reported Cybertruck sales in its quarterly updates.
Analysis of Tesla’s production reveals an estimated monthly delivery rate. Starting production in late November of last year at Giga Austin, Tesla disclosed in a previous recall notice that 1,163 vehicles were delivered in December alone. This data points to Tesla having produced approximately 10,525 vehicles in 2024, with an average delivery rate of 1,754 Cybertrucks per month through June.
Tesla recalls thousands of Cybertrucks over windshield wiper pic.twitter.com/stIMJsdZeW
— The Epoch Times (@EpochTimes) June 26, 2024
Further extrapolation indicates Tesla could reach around 23,500 Cybertruck deliveries by the end of 2024. However, at a recent annual shareholder meeting, CEO Elon Musk stated that Tesla has reached a production milestone of 1,300 Cybertrucks per week and aims to increase this rate to 2,500 vehicles per week by year’s end. This would theoretically allow for the production of 125,000 vehicles annually, assuming two weeks of factory downtime—half of Tesla’s full production capacity target of 250,000 units per year.
The critical issue remains whether there is sufficient market demand for 125,000, let alone 250,000 Cybertrucks annually. Last year, Musk commented that demand for the Cybertruck was “off the hook,” and he mentioned upcoming cheaper models, including the Cyberbeast priced at $96,390 and an All-Wheel Drive version at $76,390, which could stimulate further interest.
However, the broader electric vehicle (EV) market remains uncertain. At the shareholder meeting, Musk noted the challenging environment for EV sales and production, a sentiment echoed across the industry as other companies also scale back on EV investments.
Remember Tesla Cybertruck’s oversized windshield wiper? The one that appears too large to exist, at least not without malfunctioning ? Well, it turns out that it is.
Tesla just issued a recall for over 11,000 Cybertrucks over a windshield wiper issue. The recall includes all… pic.twitter.com/7hTos7GLdO
— Mashable (@mashable) June 25, 2024
As Tesla prepares to release its second-quarter delivery figures next week, the industry awaits these numbers with keen interest. Projections from financial analysts suggest Tesla could report around 441,000 deliveries for the quarter, which, while an increase from the 386,800 delivered in Q1, would still fall short of the 466,100 vehicles delivered in the same quarter the previous year. This data will provide a clearer picture of the current state of demand within the EV market, particularly for Tesla’s innovative but niche Cybertruck model.
Major Points:
- Tesla has announced its fourth recall for the Cybertruck, affecting 11,688 vehicles due to a defective front wiper and a trim panel issue.
- The recall figures provide a rare insight into the total number of Cybertrucks in circulation, as Tesla does not typically disclose sales figures for this model.
- As of June 2024, Tesla has produced an average of 1,754 Cybertrucks per month, with a projection to deliver approximately 23,500 vehicles by year’s end.
- Elon Musk announced a production target of 2,500 Cybertrucks per week by the end of 2024, aiming for an annual production rate of 125,000 units.
- Despite ambitious production goals, the overall demand for Tesla’s electric vehicles, including the Cybertruck, remains uncertain amid a challenging market environment.
James Kravitz – Reprinted with permission of Whatfinger News
