After more than four years since it was first announced, and two years behind the original production schedule, the first dozen or so Tesla Cybertrucks were delivered at a launch event held Nov. 30 in Austin, Texas.
Why is Tesla launching an electric truck? The truck market is considered the most profitable part of the U.S. auto market. The largest manufacturers are Ford, General Motors, and Stellantis (Ram trucks) and all three now have electric trucks of their own on the market.
How big is the market? These three sold nearly 1.7 million pickup trucks at prices that can reach $100,000. But only two percent of pickups sold in the U.S. were electric, and electric trucks were only 3 percent of the electric vehicle market.
The Cybertruck design is a distinct departure from other trucks; it has a stainless tell body and sharp angles
Even behind schedule and with full production not yet ready to roll, Tesla has more than one million trucks reserved ($100 refundable deposit). However, the original expected price of $39,900 has increased to $69,900 with a top of the line vehicle priced at $99,990. The target market is likely to be well-to-do technology fans and collectors, not fleet operators such as construction companies or businesses that need to modify the truck bed.
Shall we go for a ride?
Group Activities and Discussion Questions:
- Show video of delivery event: https://youtu.be/cX58W4_5hmw?si=nGx35Km85ZFJfv85
- View Tesla Cybertruck website: https://www.tesla.com/cybertruck
- Discuss the importance of clearly defining a target market.
- For the Cybertruck product, what is the target market?
- Divide students into teams and have each team develop a profile of a target market for Cybertruck. Include demographics, psychographics, behaviors, values, attitudes, etc.
- Based on the target market profile, what makes this product unique for these customers?
Source: Ewing, J. (30 November 2023). Pickup or lunar lander? Tesla’s Cybertruck enters a crowded market. New York Times; Kolodny, L. (30 November 2023). Elon Musk hypes Tesla Cybertruck at deliveries event in Austin. CNBC; Krisher, T. (1 December 2023). Tesla delivers first Cybertrucks. Associated Press; other news sources.