Tesla made the most expensive car window in history - November 27, 2019
Elon Musk has announced Tesla’s new pickup truck, the Cybertruck. The car’s unusual, brutalist design, to say the least, divided people. Added to that, the announcement didn’t go perfectly either. Two of the car’s bullet-proof windows were broken with metal balls. This cost Musk a whopping $786 million.
The Cybertruck is a curious car. It has a dividing design and great specs. The first trucks will roll out in 2022. Although it’s just a prototype at the moment, it has already caused some trouble for the company.
Those broken windows cause trouble
During the introduction, Musk boasted about the toughness of the vehicle. He said that the window “is literally bulletproof to a 9mm handgun”. Then they were smashed by two metal balls during the show. The vehicle on stage was only a prototype, and they said that it had been tested before the show, which could have hurt the integrity of the window.
Still, a fiasco like this never helps, and this one had a serious price-tag too. One day after showing the car to the world, Tesla’s stock prices plunged 6.14%, from $354.83 the day before to $333.04. That’s a serious reprimand from the market for the Cybertruck’s fault.
This plunge made Musk’s private wealth fell $786 million, to $23.6 billion, according to the Forbes’ calculations.
Standout car, standout sales
Even if there were some hiccups during the introduction, the Cybertruck is a formidable vehicle. Even the lowest-end version hits a 100 km/h in less than 7 seconds. The strongest, 3-engine all wheel version, does it in less than 3. The vehicle has a serious towing capacity, which is one of the most important factor when choosing a vehicle. Its range goes from 400+ to 800+ kilometers, depending on the version.
146k Cybertruck orders so far, with 42% choosing dual, 41% tri & 17% single motor
— Elon Musk (@elonmusk) November 23, 2019
And although its brutalist design choices divide people, pre-orders seem to be extraordinary. As Musk announced it on his Twitter, people ordered 146 thousand Cybertrucks, without any ad campaigns. Although these are great news, these figures are not to be confused with sales numbers. One only needs $100, a refundable deposit for a pre-order. Still, there’s a huge demand for this car.
Not the first time for Musk
We’ll just have to see how mass production goes for Tesla’s new car. The company usually has problems living up to its promises. This wasn’t the first time either for Elon Musk to hurt stock prices. As The Guardian article reminds us, for example, the same plunge was seen after Musk smoked weed during a radio show.
We also wrote about how Musk’s market behavior can hurt the company. The SEC fined the CEO and Tesla for $20 million each because of Musk’s tweets about taking Tesla private (see: Musk out, Tesla up (for now)).
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As we can see from the chart above, up until now prices haven’t recovered, but that’s sort of how things go with Tesla: it’s a roller-coaster for shareholders, but the last weeks’ results indicate positive sentiment.
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