Tesla is in the final stages of testing the Cybertruck before the first customer handovers happen on November 30. The Cybertruck is one of the most anticipated vehicles and as we near the delivery date the hype for the truck is reaching fever pitch.
However, not everyone appears to be basking in the excitement. The host of Mad Money on CNBC, Jim Cramer recently gave his two cents about the all-electric truck.
Analyzing Cybertruck’s competitive threat to the Ford F-150 and other traditional trucks from legacy auto OEMs, Jim said the Cybertruck will not at all be a threat.
In the short CNBC segment, Jim says “$100,000 for Cybertruck, I have a [Ford] Maverick apparently [the Cybertruck] does not have the payload capacity of a Maverick which fits in a small parking lot on any urban street in this country. I checked and the durability of the metal is not there. I wonder whether this man [Elon Musk] can sell even 50,000 of the 200,000 Cybertrucks.”
Jim Cramer on the Cybertruck:
“$100k for Cybertruck. Apparently this does not have the payload of a Ford Maverick (1,500lb). The durability of the metal is not there. I wonder if this man (Elon) can even sell 50,000 of the 200,000 Cybertrucks.”
If you happen to be unfamiliar with the Ford Maverick, it’s a compact truck that has a starting price of $24,000 and fits a segment below the F-150 and the Ford Ranger trucks.
Jim is alluding there that, the Cybertruck won’t be a threat to Ford as the Cybertruck’s specs can’t even measure up to that of the much more affordable Ford Maverick.
So let’s unpack what Jim said line by line. However, before we do that, let’s look back at Jim Cramer’s track record in predicting company outcomes.
Cramer is famous for affirming that, Bear Sterns, the investment bank whose fall set off the 2009 financial crisis, is fine days before the bank collapsed. Cramer has also said to sell all Tesla stock when the company only had 1% of its current value.
If you consider these bad calls to be old news, in recent years, Cramer is also famous for advocating buying Netflix and Palantir just before their respective stocks went down by more than 70%.
Cramer has made some monumentally bad calls throughout his long career that it has become, at least among retail investors, a fad to bet against his predictions. There’s even a successful inverse Cramer ETF that tracks what would happen if someone invested every time opposite to what Cramer predicted.
All this added up together, it’s usually considered good news when Jim Cramer says bad things about a company and vice versa. Having said that, I personally find Cramer to be a very engaging, entertaining, and charismatic host. I would recommend tuning in to his CNBC segment, if not for anything at least for the entertainment value.
With this out of the way, let’s analyze Cramer’s claims about the Cybertruck. First Cramer says the Cybertruck will only have a 1500 lbs payload capacity. Musk in his recent appearance on the Joe Rogan podcast has revealed the weight of the different trims of the Cybertruck.
Musk did not give the exact weight of the truck but says the heavier trim Cybertruck will weigh around 7000lbs and the lighter trim will be in the 6000lbs territory. From earlier leaks, we assume these will be the standard dual motor and the performance tri-motor Cybertruck.
And thanks to the Cybertruck VIN decoder that was released a couple of weeks ago we know that the two Cybertruck variants will have a combined vehicle and payload weight between 8000lbs-9000lbs for the lighter trim and between 9000lbs-10000lbs for the heavier trim Cybertruck.
Given these numbers, depending on whether your expectation for Tesla is optimistic or pessimistic, you can approximate the payload capacity of the Cybertruck to be anywhere between 1500lbs and 3000lbs.
However, to give Jim Cramer his props, putting together everything we know so far, it’s almost certain that the Cybertruck will not have the 3,500lbs payload capacity that Tesla initially quoted during the unveiling.
Second, Cramer’s claim that the Cybertruck will cost $100,000 appears to be a result of earlier leaks from a Tesla owner who claims he was contacted by the EV maker to take delivery of a Cybertruck at the November 30 event.
The anonymous source said that Tesla offered him two Cybertruck variants – a dual motor and a tri-motor version – and that he was told the tri-motor variant would cost $98,900. Even if this were true, Tesla is just starting Cybertruck production, and as the company reaches volume production Tesla can easily cut these prices to make the vehicle competitive.
The third point about the Cybertruck’s exoskeleton and metal not holding up, we’re not sure what he’s referring to there. Elon Musk has recently revealed that Tesla has emptied the drum magazine of a Tommy gun onto the side of the Cybertruck and that it wasn’t able to breach the passenger compartment.
Joe Rogan has also recently shot an arrow straight onto the Cybertruck from close range to only find that the arrowhead has shattered into pieces.
The final point about Tesla not being able to sell 50,000 Cybertrucks per year let alone hit the company’s goal of producing 200,000 Cybertrucks, that’s something we’ll have to wait and see. However, if Cramer is betting against the Cybertruck’s success, it gets my hopes up.
Currently, there is a lot we still don’t know about the Cybertruck however, with deliveries happening this month, we’ll be sure to keep you posted on how many of Cramer’s Cybertruck predictions come true.
Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.
So what do you think? Surprised to see Jim Cramer’s negative Cybertruck sentiment? Do you think that bodes well for Tesla? Let me know your thoughts in the comments below.
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For more information check out: Elon Musk Confirms an Optional Bulletproof Glass For Tesla Cybertruck That Can’t be Rolled Up & Down due to its Thickness
Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.