With sharp edges and a boxy stainless-steel exterior, the Cybertruck’s eccentric design is polarizing. Social media commenters both hail or hate the automobile’s distinctive look.
However the blended reactions to the Cybertruck haven’t deterred patrons — it was the third-bestselling electrical automobile (EV) within the third quarter of 2024, outselling each different EV truck, in keeping with Kelley Blue Ebook (KBB). Studies from patrons, nevertheless, point out Tesla has exhausted its Cybertruck waitlist and gross sales might quickly stall.1
Novelty is without doubt one of the Cybertruck’s promoting factors. But it surely’s additionally a hindrance for risk-averse patrons preferring a tried-and-true truck to an experimental design. The Cybertruck’s innovation hasn’t been with out setbacks, with six remembers since its launch 12 months in the past, together with for a defective rearview digital camera and a free applique that indifferent from the automobile and elevated crash threat.
About 28,250 drivers have purchased into the Cybertruck’s unconventional imaginative and prescient, and model loyalists hail its innovation. However high-tech options won’t be sufficient to win over the common driver. With its polarizing design and a steep beginning worth of $74,490, the Cybertruck has but to show it could transfer past area of interest attraction.
Key Takeaways
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Full-coverage insurance for the Cybertruck prices a median of $3,392 per yr — 45% greater than the nationwide common of $2,336, in keeping with Insurify knowledge. Insurance coverage for EVs averages $2,892 yearly.
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The Tesla Mannequin 3 is 60% cheaper than the Cybertruck. However insurance coverage for the Cybertruck is 22% cheaper. Dearer automobiles usually have greater insurance coverage charges.
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Cybertruck drivers in Insurify’s database usually tend to have glorious credit score scores (66%) than the common EV driver (35%).
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Insurify’s knowledge exhibits 50% of Cybertruck drivers are of their 40s in comparison with 14% of Mannequin 3 drivers.
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California drivers signify 22% of Insurify insurance coverage functions for the Cybertruck, adopted by Florida (17%) and Tennessee drivers (13%).
Cybertruck gross sales account for 3% of reservations
The Cybertruck had a robust third quarter, promoting 16,692 models, in keeping with KBB — but it surely nonetheless lags far behind the No. 1 bestselling EV, the Tesla Mannequin Y, which bought 86,801 automobiles. Studies from Cybertruck reservation holders point out lower than 3% of Tesla’s 1 million confirmed reservations have resulted in gross sales and the waitlist is exhausted.
The discrepancy between reservations and gross sales is probably going partly price-related. Tesla initially promised the Cybertruck would begin at $39,990, however the Basis sequence value $99,990, and the Cyberbeast value $119,000.2
Value wasn’t the one concern. Basis sequence patrons additionally needed to wait practically a yr for the Cybertruck’s Degree 3 FSD system. A number of remembers and high quality points additionally may have contributed to the idea that the Cybertruck wasn’t price its hefty price ticket.
“It’s like proudly owning an idea automotive,” stated Paul Mata, a Cyberbeast proprietor and first-time EV purchaser. “It’s uncooked. It’s completely totally different. There are positively bizarre quirks about it. However all of these issues mixed make it, I feel, superior. Are there issues that [Tesla] most likely ought to have put extra thought into? Sure, for positive … I don’t need to say it’s half-baked, however there are positively issues that aren’t polished.”
As of November, Tesla is exhibiting indicators of demand points with the Basis Sequence Cybertruck. After discontinuing two customization choices for the truck, Tesla began selling its ready-to-deliver stock.
At the moment, the least costly Cybertruck trim prices $74,490, which is 54% greater than the common new automobile ($48,397) and 32% greater than the common EV ($56,351 in September, in keeping with KBB). Regardless of the truck’s excessive worth, homeowners nonetheless pay much less for full-coverage automotive insurance coverage, on common, than for different Tesla fashions. However this might need much less to do with the Cybertruck’s out-of-the-box design and extra to do with its patrons.
Full protection for the Cybertruck is 22% cheaper than Mannequin 3 insurance coverage
Automobile worth components into car insurance rates, because it impacts the price of restore or substitute claims. The Cybertruck’s worth and a number of remembers affect its higher-than-average premiums, however different components carry down the common fee. On common, the Cybertruck is cheaper to insure than different Tesla fashions.
Cybertruck drivers usually tend to have glorious credit score (66%) than Tesla Mannequin 3 homeowners (13%), in keeping with Insurify knowledge. Auto insurance coverage corporations don’t straight use credit score scores to set charges, however in most states, they create credit-based insurance scores utilizing your credit score historical past. A greater credit score historical past correlates to decrease premiums.
Middle-aged drivers additionally pay much less for automotive insurance coverage than youthful drivers owing to their longer driving histories. Half of Cybertruck homeowners are of their 40s, in comparison with 14% of Mannequin 3 homeowners, and solely 8% of Cybertruck homeowners are youthful than 25, in comparison with 20% of Mannequin 3 homeowners.
The Cybertruck’s sturdiness additionally impacts insurance coverage prices. The home windows have a class-4 hail score, in keeping with the producer, and the sturdy metal physique mitigates dents. Warming world temperatures have fueled extra damaging storms, and insurers have seen an increase in hail damage claims. The Cybertruck’s design reduces the chance of drivers submitting hail claims.
Common Cybertruck insurance coverage charges will possible improve to match extra diversified threat profiles if the truck achieves mainstream success.
How the Cybertruck compares to the Ford F-150 lightning
Though the Cybertruck’s drivers have a much less dangerous driver profile, full protection for the Ford F-150 Lightning is cheaper than for the Cybertruck, at a median of $3,193 per yr in comparison with the Cybertruck’s $3,392.
Within the 4 years between the Cybertruck’s unveiling and first deliveries, Ford elevated competitors by releasing the F-150 Lightning, an EV model of America’s most popular truck. Ford has bought solely 22,807 F-150 Lightning vans this yr in comparison with the Cybertruck’s 28,250, in keeping with KBB. The F-150 Lightning’s third-quarter gross sales have been 43% decrease than the Cybertruck. Ford’s mainstream base might not but see the attraction of an EV truck, but when Ford can persuade its base, it’ll have entry to a wider market.
The Cybertruck’s street to mainstream attraction
The Cybertruck’s design and worth aren’t the one limitations to attracting common automotive patrons. Solely about 8% of recent automobile gross sales are electrical.3 EVs are widespread in states like California which have extra infrastructure and incentives — however public charging is sparse in some components of the U.S. The expense of putting in a house charger additionally stays a major barrier to EV adoption.
Tesla, nevertheless, doesn’t appear overly involved about making automobiles which have mass attraction. As an alternative, its technique has shifted towards extra uncommon automobiles. The EV producer lately unveiled plans for a futuristic Cybercab with no steering wheel or pedals and a Robovan formed like a high-speed prepare.
“A Cybercab seems to be totally different. A Cybertruck seems to be totally different. However Mannequin Y and Mannequin 3 are — look, they’re handsome automobiles however look pretty regular,” stated Musk in Tesla’s Q3 earnings name.
In the long run, the common driver might not be as keen as model loyalists to miss the Cybertruck’s faults and remembers. However Tesla won’t want the common driver to embrace the Cybertruck to name it successful in right now’s market.
Methodology
Insurify’s knowledge science group calculated common insurance coverage prices utilizing 97 million charges from automotive insurance coverage functions in its proprietary database. Functions span all 50 states and Washington, D.C. Insurify’s real-time quotes are from integrations with accomplice insurance coverage corporations.
Insurance coverage charges signify the common for drivers aged 20–70 with a clear driving file and common or higher credit score. Insurify examined charges from 20 bestselling electrical automotive fashions to find out common EV insurance coverage prices.
