Mr. Wonderful is loving what he sees. During a recent chat with Yahoo! Finance Live, businessman Kevin O’Leary, well-known for his role in the television series Shark Tank, said that the Tesla Cybertruck would cause yet another great shift in the electric vehicle market.
Despite the Cybertruck’s “ugly” appearance, O’Leary predicted that there would be massive demand for the vehicle once it rolls out. He based this prediction on the feedback that he is receiving from Cybertruck technology providers, in which he is a major investor. In fact, the ugly appearance of the Tesla truck could be one of the things causing its popularity. O’Leary noted that “ugly is interesting.”
Tesla’s setup of the Cybertruck production line at Gigafactory Texas has been no small feat. The unusual triangular shape of the Cybertruck has made it challenging for the vehicle to be mass-produced. In addition, the limited availability of computer chips during the COVID pandemic slowed production. However, once Tesla optimizes production, O’Leary predicts that the Cybertruck will command a high profit margin of between 10% and 12%.
O’Leary is expecting a high profit margin because the Tesla truck has “so much efficiency in manufacturing costs.” By not using paint on its Cybertrucks, Tesla has removed one of the most expensive and time-consuming aspects of the manufacturing process. Tesla is also saving on costs by using a single piece of stainless steel for the Cybertruck’s exterior. This is in contrast to most other cars, which require multiple pieces of steel.
According to estimates, more than 1.5 million Cybertrucks have already been preordered. Consumer interest could rise further once the long-awaited vehicle hits the market later this year.
Elon Musk may have considered the Cybertruck a potential failure. However, O’Leary’s confidence suggests that Musk’s fears are likely to prove unfounded.