Tesla revealed that its all-electric Cybertruck has achieved a positive gross margin for the first time, meeting goals that the vehicle would be profitable for the company by the end of 2024.
Tesla started ramping production of the Cybertruck last year after deliveries began in November. To reach profitability and obtain a positive gross margin, Tesla has to make more than a vehicle costs to produce. As easy and elementary as this sounds, it is incredibly difficult, as it requires scaling, which requires customer demand.
Cybertruck seems to have no shortage of people who will purchase it, as production and deliveries of the pickup are still moving along nicely for Tesla, it said in its Q3 Earnings Shareholder Deck.
“Cybertruck production increased sequentially and achieved a positive gross margin for the first time,” Tesla wrote in its shareholder deck. Tesla lists its annual production rate for pickup as greater than 125,000 units per year.
It is built at Gigafactory Texas.
The achievement by Tesla to already be making money off of the Cybertruck is impressive, considering the vehicle was first delivered less than a year ago. Many electric vehicle companies are still struggling to turn a profit despite building their cars for several years.
Simply enough, they do not have the delivery count or the manufacturing capacity that Tesla does, as the automaker is looking at an installed annual vehicle capacity of over 2,350,000, its shareholder deck says.
In Q2, Tesla detailed the Cybertruck’s production ramp and said that it was on track to attain profitability on the vehicle by the end of the year:
“Cybertruck production more than tripled sequentially and remains on track to achieve profitability by end of year.”
It has already achieved this feat with more than two months left in the year.
Tesla is up over 7 percent in aftermarket trading based on its strong quarterly showing, where it missed slightly on revenue but margins were extremely robust.
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