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BUSINESS NEWSNOVEMBER 22, 2019 / 6:30 AM / UPDATED 7 HOURS AGO
Tesla's electric pickup truck flouts convention with angular design and armored
glass
Naomi Tajitsu, Peter Henderson
5 MIN READ

(Reuters) - Tesla Inc (TSLA.O) on Thursday unveiled its electric pickup truck with
a futuristic angular body in gunmetal gray that looked like an armored vehicle, as
the California company took aim at the heart of Detroit automakers’ profits.

Tesla Chief Executive Elon Musk stands in front of the company's first electric
pickup truck, the Cybertruck, after it was unveiled in Los Angeles, California,
U.S., November 21, 2019, in this frame grab made from the livestream of the
unveiling event. Tesla/Handout via REUTERS.
With a starting price of $39,900, the Cyber truck is less expensive than initially
flagged but its polarising design could limit sales in a segment symbolic of a
rugged, practical American lifestyle.

At a launch event in Los Angeles, Tesla Chief Executive Elon Musk said other
versions will be priced at $49,900 and $69,900 with the most expensive offering a
range of more than 500 miles (800 km). Production is expected to begin around late
2021.

“We need sustainable energy now. If we don’t have a pickup truck, we can’t solve
it. The top three selling vehicles in America are pickup trucks. To solve
sustainable energy, we have to have a pickup truck,” he said.

The truck’s hulking sharp geometric body was made from stainless steel, set atop
massive tires and had windows made from armored glass.

“It will be a niche product at best and poses no threat in the pickup market as we
know it today,” wrote Matt DeLorenzo, senior executive editor at automotive
research company Kelley Blue Book.

Musk claimed the truck’s “ultra-hard” exterior “won’t scratch and dent”. But the
armored glass window cracked like a spider web when hit with a metal ball during a
demonstration. Musk appeared surprised although he noted the glass had not
completely broken.

Reactions on Twitter ranged from love to hate.

“I just watched tesla release the #cybertruck and honestly? My life feels
complete,” wrote @aidan_tenud, while @nateallensnyde wrote “Its nice to see Elon
Musk make a cardboard box car he drew in kindergarten,”.

Musk earlier tweeted the design was partly influenced by the Lotus Esprit sportscar
that doubled as a submarine in the 1970s James Bond film “The Spy Who Loved Me”.
The truck marks the first foray by Tesla, whose Model 3 sedan is the world’s top-
selling battery electric car, into pickup trucks, a market dominated by Ford Motor
Co’s (F.N) F-150, along with models by General Motors Co (GM.N), and Fiat Chrysler
Automobiles NV (FCHA.MI) (FCAU.N).

FORD, GM GEAR UP TOO

Tesla’s focus on the high-performance end of the market is only natural given the
success of Ford’s 450-horsepower F-150 Raptor truck, which launched in 2009 and
whose sales have since risen annually, according to Ford spokesman Mike Levine.

While Ford does not disclose Raptor sales, Levine said annual demand is well above
19,000 vehicles and the No. 2 U.S. automaker has never had to offer incentives on
the model, which costs in the high $60,000 range. Ford also offers the more
expensive F-150 Limited, its most powerful and luxurious pickup.

Ford and GM are also gearing up to challenge Tesla more directly with new offerings
like the Ford Mustang Mach E electric SUV as well as electric pickups.

Electric pickups and SUVs could help Ford and GM generate the significant EV sales
they will need to meet tougher emission standards and EV mandates in California and
other states.

The Trump administration is moving to roll back those standards, but electric
trucks are a hedge if California prevails.

Demand for full-size electric pickup trucks in the near term may not be huge,
however.

Industry tracking firm IHS Markit estimates the electric truck segment - both full-
and mid-sized models - will account for about 75,000 sales in 2026, compared with
an expected 3 million light trucks overall. The Tesla truck is not part of that
estimate.

Slideshow (2 Images)
Ford aims to sell an electric F-series in late 2021, sources familiar with the
plans said. It also will offer the Mach E next year as part of its plan to invest
$11.5 billion by 2022 to electrify its vehicles.

In April, Ford invested $500 million in startup Rivian, which plans to build its
own electric pickup beginning in fall 2020.

GM plans to build a family of premium electric pickup trucks and SUVs, with the
first pickup due to go on sale in the fall of 2021. It plans to invest $8 billion
by 2023 to develop electric and self-driving vehicles.

Reporting by Naomi Tajitsu in Tokyo and Peter Henderson in San Francisco;

Additional reporting by Miyoung Kim in Singapore and Joseph White in Detroit;
Editing by Edwina Gibbs

Our Standards:The Thomson Reuters Trust Principles.

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