Tesla Inc's (NASDAQ: TSLA) Cybertruck production is on track to achieve profitability by the end of the year, the company said on Tuesday, thanks to an increase in production and attempts at reducing costs.
Ramping Up Production: Cybertruck production more than tripled sequentially in the second quarter and the stainless steel truck became the best-selling EV pickup in the U.S., Tesla said on Tuesday in its second-quarter earnings report
According to Kelley Blue Book estimates, Tesla sold 8,755 Cybertrucks in the quarter in the U.S., as compared to just 2,803 in the first quarter. The second best-selling EV truck in the quarter was the F-150 Lightning, of which Ford sold just 7,902 units.
The company is currently attempting to further ramp up production with the aim of delivering 250,000 units annually starting in 2025. Tesla has touched a weekly production rate of 1,300 Cybertrucks, Musk said at Tesla's annual shareholder meeting in early June. The company is looking to increase it further this year to touch 2,500 units by year-end, he added.
Cost-Reduction Attempts: In addition to scaling production, Tesla is also attempting to bring down costs.
The company started testing its prototype Cybertruck produced with in-house "dry" cathode 4680 cells in July. Once ramped, the use of in-house dry cathode 4680 cells would enable major cost reduction, the company said.
The launch of production Cybertrucks with dry cathode 4680 cells is expected in Q4, Tesla's Vice President of Vehicle Engineering Lars Moravy said on the company's earnings call.
Tesla already produces 4680 cells for use in the Cybertruck but with cathodes manufactured using a more conventional "wet" process involving the use of a toxic solvent. In the second quarter, Tesla produced 50% more 4680 cells than the first quarter, the company said.
Why It Matters: Tesla started delivering its stainless steel Cybertruck in late November. The vehicle is aimed at more premium EV customers with the higher-end Cyberbeast variant starting at an estimated $99,990.
However, Musk has previously said that production, and not demand, is the biggest hurdle in ramping up Cybertruck deliveries. The company eventually intends to make the truck a common sight on American roads.