The Tesla Cybertruck has reached a key milestone by becoming profitable less than a year after its first deliveries. This achievement, confirmed during Tesla’s Q3 2024 earnings report, marks a significant turning point for the company as it continues to ramp production of the electric pickup truck.
Tesla began production of the Cybertruck in November 2023, delivering the first dozen or so Foundation Series units to select customers at a special delivery event at Giga Texas. The company started ramping production and began delivering the Cybertruck in earnest a few months later, hitting record sales volumes just months into production.
During the year, Tesla forecasted that the Cybertruck was on track to reach profitability by the end of 2024, or just over a year after production began.
While Tesla sometimes misses its timelines, this time the company exceeded expectations. In its Q3 2024 shareholder deck, Tesla confirmed the Cybertruck is now profitable, with two and a half months left to go in the year.
“Cybertruck production increased sequentially and achieved a positive gross margin for the first time,” Tesla wrote in its report.
Tesla also reported sequential increases in production during the third quarter, bringing its annual production rate for the electric truck to over 125,000 units.
The Cybertruck’s path to profitability has been impressive, especially considering that all other electric vehicle (EV) manufacturers have yet to break even after years of production. Tesla’s ability to reach a positive gross margin so quickly highlights the company’s effective production scaling strategies, especially on such a complex and unique vehicle as the Cybertruck.
With the Cybertruck now profitable, and deliveries of the regular versions starting at US$79,990 just starting, the company is not resting on its laurels. Lead engineer Wes Morrill said on X that the team is “not finished, now we get back to the cost grind.”
Cybertruck profitability <1 year from start of production, congrats team! This is a impressive milestone for the manufacturing and operations team ramping successfully, step by step improving yield, quality, and reducing overtime.
— Wes (@wmorrill3) October 23, 2024
Also a great success of thousands of individual… https://t.co/PMzmcHvZip
