IT Home reported on October 24 that Tesla announced that its all-electric pickup truck Cybertruck achieved a positive gross profit margin for the first time, reaching the company's goal of achieving profitability of the model by the end of 2024 ahead of schedule.
IT Home noted that Tesla began to expand the production of the Cybertruck after it began deliveries in November last year. In order to be profitable and achieve a positive gross margin, the Tesla Cybertruck's revenue must exceed its production costs. While it sounds simple, it's actually very difficult because it requires large-scale production, which in turn needs to be supported by customer needs.
Tesla said in its third-quarter earnings report shareholder presentation that there seems to be no shortage of buyers for the Cybertruck, and that production and delivery of the pickup are still well underway.
"The Cybertruck has continued to grow production and achieved a positive gross margin for the first time," Tesla wrote in a shareholder presentation. Tesla lists its annual pickup truck production as more than 125,000 units per year.
Considering that the Cybertruck was first delivered less than a year ago, Tesla has been able to make money from the model, an impressive achievement. Many EV companies are struggling to be profitable despite having been producing cars for years.
Tesla detailed the Cybertruck's ramp-up in production in the second quarter and said that the model is on track to be profitable by the end of the year, and with more than two months to go until the end of the year, Tesla has already achieved this goal ahead of schedule.
Tesla's shares rose more than 7% in after-hours trading on the back of its strong quarterly results, with very strong margins despite slightly lower-than-expected revenue.