Cars and Drivers

Does Tesla Have Enough Production Capacity to Build a Pickup?

Elon Musk, founder and CEO of Tesla Inc. (NASDAQ: TSLA), took to Twitter to talk about the company’s prospects. Among the responses when he asked for “suggestions” was that Tesla build a pickup. He not only said yes but added that it would be full-sized version, which means it will compete with the best-selling vehicle in the country, Ford Motor Co.’s (NYSE: F) F-150. The pickup would also compete with two other best-selling vehicles in the United States, General Motors Co.’s (NYSE: GM) Chevy Silverado and the Fiat Chrysler Automobiles N.V. (NYSE: FCAU) Ram.

Tesla already has admitted it is behind in the manufacture of its low-priced Model 3. How then can it get into the pickup market, which would require huge production capacity?

Ford will sell close to 900,000 F-150 models this year. GM will sell over 550,000 Silverados and Fiat Chrysler will sell 500,000 Rams. A Tesla pickup might be toy for the full-sized pickup sector, aimed at those consumers wildly attracted to all-electric trucks. In terms of gas mileage, Ford already has a version of the F-150 that gets 26 miles per gallon for highway driving. While this is nowhere close to what a Tesla would post, it is a high-mileage engine as far as full-sized pickups go.

It is a long shot that Tesla could build 100,000 pickups a year, which is what would be required to dent the market. Tesla’s capacity is already constrained by models beyond the Model 3. Demand is high for its original Model S, its Model X crossover and a Roadster that has not gone into production.

Musk has exaggerated Tesla’s capacity in the past, which has made investors nervous and consumers wary about whether it can deliver enough new cars to meet demand. A full-sized pickup would be a bridge too far.

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.