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Elon Musk has indicated that 200,000 pre-orders were made on Tesla’s Cybertruck. However, TSLA stock hasn’t been seriously influenced.
In what seems to be a comeback for Tesla’s Cybertruck after a mishap involving the breaking of its windows which was supposed to be “unbreakable” CEO Elon Musk has indicated that the electric automaker has received about 200,000 orders so far.
However, TSLA stock hasn’t reacted seriously. In premarket it is 3.47% up, however, at the close, it was -6.14%.
While Musk didn’t distinguish between “pre-orders” and final “orders” where people have committed to purchase the Cybertruck, the interest in the new electric vehicle is still high despite the window incident at the product launch.
— Elon Musk (@elonmusk) November 25, 2019
In a series of tweets, Elon described the rising interest of the Cybertruck which has received great endorsement by Tesla fans as many have paid the $100 pre-order fee just to indicate their desire to get one of the most extreme designs in the trucking niche of the automobile sector.
146k Cybertruck orders so far, with 42% choosing dual, 41% tri & 17% single motor
— Elon Musk (@elonmusk) November 23, 2019
This, of course, points to Elon’s ability to manage situations even when they do get out of hand which is an innate entrepreneurial trait that many modern-day technology entrepreneurs seem to possess. While previous models from the electric automaker have been more expensive in terms of preorders, this will be the first time that the automaker is reducing the preorder prices to less than previously. The Model Y, for instance, has had a $2,500 pre-order deposit and Tesla’s 2016 model 3 had a price tag of $1,000 per pre-order as well.
It also came as a surprise that the $100, is fully refundable and other steps will be required for final order confirmation. The Tesla Cybertruck preorder agreement states:
“After you submit your completed pre-order and the options you selected become available in production, we will invite you to complete the configuration of your Vehicle. We will then issue you the Vehicle Configuration and Final Price Sheet based on the base price of the model and any options included or that you select.”
Being the sixth car coming off the assembly line since its founding, Tesla’s Cybertruck was expected to be a direct competitor to other automakers in the truck niche such as Ford’s F series and GMs’ Chevrolet Silverado. However, it doesn’t seem like that’s going to happen after the unveiling of the modernist and futuristic design of the truck was revealed.
Industry pundits view the Cybertruck as more of a “specialist” product with a “cult-like” appeal indicating that the Cybertruck may just be for quite a select few who wish to be seen as futuristic rather than mainstream.
$100 Pre-Orders: Marketing Gimmick or Good Old Advertising?
While Elon Musk has been known for his avante-garde ways and means of getting the word out as regards his products, it still seems ingenious the way that he has been able to get the interest of the Cybertruck off the ground despite the previous mishap that took place during the product launch.
The pre-order pricing which is the lowest so far in the history of the company as it rolls out products teaches us all a great lesson when it comes to making a comeback from a fall: learn to use negative situations that happen to your advantage.
How this will work out for the final sales and orders of the Cybertruck remains yet to be seen but this is indicative of a great start for a product that may break market boundaries.