Tesla's latest earnings call updated listeners on the Cybertruck, which started deliveries last month. Elon Musk stated, “It's like finally, the future looks like the future… That's our best product ever.” The CEO’s statement sums up the excitement surrounding a vehicle that has captivated the imagination of generations.
Vaibhav Taneja, the company’s CFO, added, "Anywhere you go, people look at you, they give you thumbs up."
Cybertruck Demand and Production
The demand for the Cybertruck has been “off the hook,” according to Musk. Tesla revealed an impressive conversion rate from reservations to orders.
Karn Budhiraj, VP of Supply Chain of Tesla, emphasized, "The reservation to order conversion rates so far has been very, very encouraging. If the trend continues as it is very likely to be, we will soon sell out all the builds in 2024." This statement highlights the strong market demand for the Cybertruck, and Tesla's ability to meet consumer expectations will have to accelerate. “The numbers keep growing. So we're now all hands on deck, focused on ramping so we can fulfill all the demands in a reduced wait time.”
Cybertruck base
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Tesla's approach to meeting this demand is equally noteworthy. "It's important to emphasize that this is very much a production-constrained situation, not a demand-constrained situation," Musk stated, reaffirming that Cybertruck production will hit 250,000 per year. He also mentioned that Tesla could raise the price to manage demand, “obviously, we could dramatically raise the price, but that doesn't feel right to us to sort of gouge people for early delivery,” suggesting a commitment to affordability.
4680 Battery Cells: Expansion and Growth
A crucial element in the Cybertruck's production ramp-up is the 4680 battery cells. Tesla has been working tirelessly to increase the production of these cells. Karn Budhiraj reported, "To date, 4680 production is ahead of the ramp with actually weeks of finished cell inventory. And the goal is to keep it that way, not only for Cyber, but for our future vehicle programs.” This progress is critical to Tesla's ability to meet the Cybertruck demand without sacrificing quality or delaying delivery.
Tesla's manufacturing capabilities are set for significant expansion. The company is currently running one production line and one assembly line and using two assembly lines in addition to yield and rate improvement trials for the 4680. Budhiraj stated, “We have a fourth in commissioning, and four more will be installed starting in Q3 this year. So, definitely, this is a big year for ramping 4680.
This expansion will cater to Cybertruck's demand and bolster Tesla's overall production capacity for future vehicle programs. The executives emphasized that some companies only work on batteries, but it’s just one piece of Tesla. Musk said, “It's not just that it's a 46-millimeter diameter by 80-millimeter cell. That's just the dimensions. There's a tremendous amount of new technology in the cell itself.” And you thought Tesla was a car company.
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Tesla has begun to reach out to customers in the United States and is offering demo drives of the Cybertruck on an invite-only basis. @brandonhd on X shared the first invite image, and it looks like it's going out quite quickly to multiple locations that have Cybertrucks on display.
Up until now, display vehicles have been for just that – looking, but no touching. Some Tesla delivery centers and showrooms have also allowed viewers to take a seat inside and open it up, but most are still locked away behind the velvet rope.
It’s exciting to see that Tesla has begun to demo them – and it can only be so long until demo drives open up to everyone.
Advisor-led Demo
This Demo Drive is led by a Tesla Advisor – while you’re driving, the advisor will be in the passenger seat, walking you through the experience. They’ll explain steer-by-wire, off-road controls, and will introduce new-to-Tesla buyers to all the features that are currently available.
The list of locations so far for demo drives appears to be fairly limited, but we will hopefully see demo drives roll out throughout the United States, and eventually Canada too. Here is the current list of city/state locations that have seen demo drive invites.
Actually Smart Summon, the successor to Tesla’s Smart Summon feature, has been confirmed to be coming as soon as next month as per Elon Musk. Colloquially known as “ASS”, Actually Smart Summon is supposed to improve on the regular Smart Summon capabilities, which have historically used ultrasonic sensors (USS) to navigate parking lots.
We’re looking forward to Actually Smart Summon, and we’re quite excited about what other features will be unlocked once it finally shows up at our doorstep.
Vision-based Improvements
ASS is supposed to bring Smart Summon to vehicles that don’t have USS – using Tesla Vision. Most recently, Tesla has brought Autopark to vehicles without USS, and Vision-based Autopark has been a huge success. It is faster, more reliable, and smoother than the older USS-based solution. It can also park and maneuver in tighter locations.
Today, Smart Summon is sometimes useful at best, usually a party trick, or downright dangerous at worst. It’s excellent and best used in straight lines, where you have a clear line of sight of the vehicle, and can stop it if doesn’t see an obstacle.
I used Smart Summon today, just before writing this article – my 2022 Model Y (with USS) – did manage to show up just fine – in a straight-line location from where I was parked, after exiting the parking spot fairly cleanly. However, I’ve previously used Smart Summon and have had the vehicle turn towards obstacles, such as cart returns or curbs. Overall, it’s a sometimes-useful feature that has a lot of drawbacks right now.
Smart Summon is also restricted to a certain distance – and it's pretty small. The max distance is shorter than most parking lots, being only about 215 ft (65m). If you’re lucky enough to park close, it's very useful to bring your car right to you.
Actually Smart Summon
ASS will bring FSD V12-like capabilities to Smart Summon – the vehicle will primarily use Vision to drive toward you (or the location you’ve indicated). ASS has been supposed to be coming since about September 2022 and has seen many delays – we’re almost at the 2-year point today.
We’re looking forward to Actually Smart Summon being able to bring the vehicle – safely – right to you. ASS is also one of the key steps towards bringing some other cool features that Elon Musk has previously mentioned – Park Seek and Banish Autopark.
We’re also hopeful that Actually Smart Summon will increase the maximum range a vehicle can be summoned, because the current range is fairly small. Alongside Park Seek and Banish Autopark, we’re closing in on a Robotaxi-based future.
Park Seek and Banish Autopark
When the FSD v12.4 showed up, Elon also mentioned that going forward, vehicles would automatically park themselves when arriving in a parking lot – Park Seek – and that if you got out of the car at the entrance to a business, you could get it to automatically park itself in the parking lot – Banish Autopark. These are two features that are needed for Robotaxi to work – which itself is delayed to October 10th of this year. We’re looking quite forward to them – as in combination with Actually Smart Summon, Tesla has reached the cusp of vehicle autonomy.
A vehicle that arrives, driverless, at the location you’re at, then drives somewhere, parks itself there, and waits for you – is the definition of a Robotaxi.
While we’re likely to have to wait for Banish Autopark and Park Seek just a bit longer, Actually Smart Summon being around the corner is exciting! Gone will be the days of having to run out to your car when you forgot your umbrella – your car will just come right to you instead.
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