Tesla Cybertruck demand 'so far off the hook, you can't even see the hook,' Musk says

Tesla (TSLA) CEO Elon Musk says he’s not concerned about a demand problem for the long-awaited Cybertruck, when it finally comes out.

“Demand is so far off the hook, you can't even see the hook,” Musk said about the Cybertruck during last night’s Q2 earnings call. “So that's really not an issue. I do want to emphasize that the Cybertruck has a lot of new technology in it, like a lot. It doesn't look like any other vehicle because it is not like any other vehicle.”

Musk said the Cybertruck’s appeal has to do with its unique dimensions. “This is the first truck that we're aware of that will have four doors over a 6-foot bed and will fit into a 20-foot garage. So it's the biggest on the outside, but it's even bigger on the inside,” he said. “So just trying to get right in the middle of the Goldilocks Zone, not too big, not too small, and then really maximize the utility of the volume. And we can't wait to start delivering it later this year.”

Nonetheless, for analysts and investors, the demand story for the Cybertruck is part and parcel to the bull thesis for Tesla shares, which currently trade at a forward P/E (price-to-earnings ratio) of 85. An online reservation tracker that Tesla watchers put together indicates over 1.9 million preorders, but Tesla only requires a refundable $100 down payment for a reservation slot.

The bigger problem for Tesla may come down to supply — whether the company can actually build the Cybertruck — and at scale. Tesla and Musk have blown timelines in the past for other products, so the belief among the investment community is that the company is being optimistic about the Cybertruck’s progress. After all, the Cybertruck was already delayed by two years, and in that time Ford has released its highly acclaimed F-150 Lightning, while Rivian intends to build 50,000 R1 trucks in 2023 alone.

Tesla said in its report that it was working on Cybertruck equipment installation at Giga Austin, with initial production slated to begin "later this year" along with initial customer deliveries. Currently Tesla is building “release candidates” of the Cybertruck in Giga Austin, but the company did not say whether these initial builds came from the assembly line or were built by hand elsewhere at the plant.

Morgan Stanley analyst Adam Jonas, a noted Tesla bull, believes that Musk has managed Wall Street’s expectations regarding the Cybertruck’s progress.

“Elon Musk emphasized the capability and complexity of the vehicle and that, despite the company’s experience in ramping vehicles, Cybertruck’s ramp can only move as fast as the slowest moving part or process,” he said.

Musk said that there were “10,000 unique parts and processes in the Cybertruck,” complicating the production process for an all-new vehicle. But being ever the optimist when it comes to Tesla’s ingenuity, Musk believes the worst for the Cybertruck, at least from a development point of view, is behind it.

“It's always difficult to predict the ramp initially, but I think we'll be making them in high volume next year, and we will be delivering the car this year,” Musk said.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance