Stock is on many investors’ minds today after the automaker’s very well-known CEO, Elon Musk, said that it had chosen a final design for its upcoming Cybertruck. Moreover, according to Musk, the truck will be produced starting in the middle of next year.
On a negative note, however, the CEO warned that two of the company’s major factories were burning billions of dollars due to supply-chain issues.
The electric vehicle’s (EV) timeline has been postponed at least four times since Tesla introduced the concept in 2019.
According to Elektrek: “A significant part of the delay has been attributed to Tesla updating the design of the Cybertruck on several occasions.” As a result, Musk’s statement about the truck’s design being “locked” should be viewed as good news for TSLA stock owners.
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Importantly, however, the Cybertruck, even if it’s released next year, will face a significant amount of competition. Among the automakers that have already launched electric trucks are Ford (NYSE:F), General Motors (NYSE:GM), and Nikola (NASDAQ:NKLA).
On the other hand, Musk said, in a segment of an interview conducted in late May but released yesterday, that supply-chain issues, not competition, are the automaker’s major concern.
He explained that two of the automaker’s recently launched factories are “losing billions of dollars.” The company’s plant in Texas was only manufacturing a small “number of cars… partly because some components for its batteries were ‘stuck’ at a Chinese port,” Musk stated.
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The German plant was also being hurt by supply-chain bottlenecks. The CEO added that Tesla was having a very difficult time coping with anti-coronavirus measures that were implemented in Shanghai. On the positive side, however, Musk said he expected the problems to be resolved very quickly.
