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Electric Pickup Truck Market Struggles
Tesla’s Cybertruck has significantly fallen short of sales forecasts with only 15,211 U.S. registrations year-to-date through July, a 14% decline from the previous year, and a 54% drop in July alone. Overall, the electric pickup segment has failed to surpass 50,000 sales in the same period, contrasting sharply with the gasoline-powered truck market, which sees hundreds of thousands of sales annually. While General Motors is experiencing growth with its electric models, other competitors like Rivian, who saw a 37% drop in registrations, and Ram, who canceled its electric pickup plans, highlight the challenges facing the sector.
The core issue lies in high production costs, primarily due to expensive battery components, which hamper profitability. Tesla’s Cybertruck introduced a base model priced at nearly $70,000, despite initial promises of starting under $40,000. Currently, automakers are rethinking strategies, with Ford planning to enhance its production methods to potentially launch a profitable EV pickup, aiming for improvements in production speed and cost efficiency.
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