News
Electric pickup buyers hold multiple reservations as delivery date uncertainty looms: survey
With so many electric pickups set to hit the market in the coming years, consumers are playing their hands by holding reservations on multiple EV trucks due to the uncertainty of when they might be delivered.
A new survey from Recurrent shows that “about 89% of Tesla Cybertruck reservations overlap with another truck pre-order, and 100% of Ford F-150 and Chevrolet Silverado reservations also pre-ordered another vehicle on this list. ”
It is no secret a major focus of many electric automakers in 2021 and 2022 was the EV pickup. With trucks being such a popular body style in the United States and elsewhere, companies were fending to offer the first EV pickup, but also the most effective one. While Rivian’s R1T was the first electric pickup on the market, the GMC Hummer EV joined the list shortly after. However, notable newcomers and worthy opponents are coming, as the Tesla Cybertruck and Chevrolet Silverado EV are both expected to hit production lines in the next year. A breakdown of how many reservations each truck has, and how prospective EV truck buyers are playing their multiple pre-orders, shows the anticipation for the emergence of the electric pickup market.
“We knew that 2022 would be the year of the electric truck, and the year has not disappointed us, at least as far as pre-orders go,” Scott Case, CEO and co-founder of Recurrent, said. “But I’m also taking pre-order number claims by manufacturers with a grain of salt, because clearly not all of those orders are solid. Shoppers should not be scared off by long pre-order waits if they know the vehicle you want.”
It has been reported on numerous occasions that the Tesla Cybertruck has accumulated a massive number of pre-orders: 1.27 million+, according to Recurrent’s research. The F-150 Lightning is second with 200,000 pre-orders, and the Rivian R1T and R1S and Hummer EV have 90,000 and 65,000, respectively.
However, the breakdown of how these pre-orders are being played is most interesting. Recurrent surveyed over 200 EV shoppers in a partnership with AAA Washington to see what EVs buyers have pre-ordered and which they intend to actually purchase. The research showed that Tesla vehicles have 100 percent order fulfillment, while other vehicles, like the Chevy Silverado EV, only had a 20 percent fulfillment rate.
“In the case of Tesla, there is a non-refundable order fee that may weed out some impulsive reservations, as well as the knowledge that the market is hot enough to resell your order before you even take delivery,” the study said. Recurrent attributed the outliers above to three factors:
- Uncertainty on delivery time – or delivery at all – may cause some shoppers to modulate their enthusiasm for certain vehicles. Of course, the Tesla Cybertruck, with its seemingly infinite production delays, comes to mind here.
- Refundable reservations mean that customers can express interest in many cars and make the decision when they see when, and what, they can actually drive off in.
- With all the buzz around electric vehicles, manufacturers may be incentivized to make reservations easy for shoppers in order to pump up their numbers, even if these reservations don’t all turn into sales
In general, however, EV truck buyers are more likely to have multiple reservations. Recurrent says the strategy of over-ordering allows buyers to keep their options open, especially as production and delivery dates have not yet been solidified by the manufacturers, which gives the reservations holders more time to analyze their decisions. However, 89 percent of Cybertruck reservations overlap with another EV truck order, while 100 percent of Ford F-150 Lightning and Chevy Silverado EV orders are paired with another vehicle on the list Recurrent put together.
Credit: Recurrent
Additionally, the study found that Tesla brand loyalty runs deep. “Recurrent found that many families have gone all-in on Tesla. Around 50% of those who have reserved both a Telsa Cyber Truck and a Tesla car model plan to redeem both,” it said.
Tesla reservations do not seem to overlap with other brands, which would align with the company’s history of brand loyalty. “If you’ve reserved a Ford F-150, Rivian, or Chevy Silverado, chances are good that you may also have reserved a Tesla Cybertruck,” Recurrent’s study added. “But, if you’re interested in any of the new, non-truck options on this list, there is virtually no overlap with the Tesla brand. There is a clear chasm between non-Tesla cars and Tesla reservations.”
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
News
Starlink gets its latest airline adoptee for stable and reliable internet access
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
SpaceX’s Starlink, the satellite internet program launched by Elon Musk’s company, has gotten its latest airline adoptee, offering stable and reliable internet to passengers.
Southwest Airlines announced on Wednesday that it would enable Starlink on its aircraft, a new strategy that will expand to more than 300 planes by the end of the year.
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
Tony Roach, Executive Vice President, Chief Customer and Brand Officer for the airline, said:
“Free WiFi has been a huge hit with our Rapid Rewards Members, and we know our Customers expect seamless connectivity across all their devices when they travel. Starlink delivers that at-home experience in the air, giving Customers the ability to stream their favorite shows from any platform, watch live sports, download music, play games, work, and connect with loved ones from takeoff to landing.”
Southwest also said that this is just one of the latest upgrades it is making to provide a more well-rounded experience to its aircraft. In addition to Starlink, it is updating cabin designs, offering more legroom, and installing in-seat power to all passengers.
Southwest became one of several airlines to cross over to Starlink, as reviews for the internet provider have raved about reliability and speed. Over the past year, Hawaiian Airlines, United Airlines, Alaska Airlines, airBaltic, Air France, JSX, Emirates, British Airways, and others have all decided to install Starlink on their planes.
This has been a major move away from unpredictable and commonly unreliable WiFi offerings on planes. Starlink has been more reliable and has provided more stable connections for those using their travel time for leisure or business.
Jason Fritch, VP of Starlink Enterprise Sales at SpaceX, said:
“We’re thrilled to deliver a connectivity experience to Southwest Airlines and its Customers that really is similar, if not better, than what you can experience in your own home. Starlink is the future of connected travel, making every journey faster, smoother, and infinitely more enjoyable.”
Starlink recently crossed a massive milestone of over 10 million subscribers.
Elon Musk
Tesla nears closure of Full Self-Driving purchasing option
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
Tesla is nearing the closure of its Full Self-Driving outright purchasing option, which will be removed on February 14, meaning Saturday will be the last time it can be bought as a non-subscription.
Tesla is aiming to move its Full Self-Driving suite to a subscription-only platform, a move that will enable people to only pay monthly for the semi-autonomous driving functionality.
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
It is currently priced at $8,000 for the outright option to use Full Self-Driving, a substantial decrease compared to the $15,000 it was priced at one time. For the monthly subscription, it is just $99 per month, but that price will change, likely increasing as things get more advanced.
Tesla is overhauling its Full Self-Driving subscription for easier access
We say it will likely increase because there is no indication of how Tesla will price FSD. There has been some speculation that Tesla could utilize a tiered system to price FSD, which would potentially allow owners to pick and choose a set of features that would be most ideal for them.
This would potentially introduce an even more affordable option for FSD use, but this is unconfirmed. The reason many say this could be an option for Tesla is the fact that if the price goes up further, the take rate, which is currently around 12 percent at its most recent estimate, could be lower.
Musk needs 10 million active Full Self-Driving subscriptions to unlock one of the tranches of his newest compensation package.
The move to a subscription-only platform has its positives and negatives, and owners have been more than vocal about these since Musk confirmed the move.
Positives
- Lower barrier to entry and higher potential adoption
- Financially better for many users
- Easier transfers and brand loyalty
- Predictable recurring revenue for Tesla
- Access to the latest features
Negatives
- Higher long-term cost for loyal/long-term owners
- No true “ownership” or permanence
- Risk of future price hikes or even deactivation
- Perceived as of less value
- Impact on resale and used market
Overall, there is a split among the Tesla community in terms of what they see as the “right” way to handle this. Tesla is likely to shed more details on what its plans for the subscription-only platform will be, including pricing, in the coming weeks.
Elon Musk
Elon Musk’s Boring Company selected for Universal Orlando tunnel project
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
Elon Musk’s The Boring Company has been selected for a proposed underground transit system connecting Universal Orlando Resort and the newly opened Universal Epic Universe.
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
As noted in a blooloop report, Universal’s Shingle Creek Transit and Utility Community Development District approved a resolution showing its intent to designate The Boring Company as the contractor for the project.
The agreement covers the full scope of the project, from the tunnel’s design, construction, and maintenance. The project has also been described in public documents as a “point-to-point innovative transportation” initiative with a 25-year agreement.
The proposed Boring Company tunnels would directly link Universal’s existing parks with Epic Universe, which sits roughly three miles away from Universal Orlando Resort. Today, buses are the only direct connection between the two destinations.
Project requirements were quite stringent. Bidders were required to demonstrate at least $75 million in bonding capacity, have a minimum of seven years of operational experience, and show prior delivery of a comparable project valued at $25 million or more within the past 15 years. The Boring Company, thanks in no small part to the Vegas Loop, meets these requirements.
The Orlando selection adds to The Boring Company’s growing portfolio of Loop-style systems. In Las Vegas, the Las Vegas Convention Center Loop has transported more than two million passengers in Tesla vehicles through underground tunnels since 2021. The greater Vegas Loop system is also under construction.
For now, residents in the area seem enthusiastic about the upcoming project. In a comment to Fox35, residents noted that the tunnels could improve traffic in the area.
“We are very congested at certain times and certain hours and that would certainly help with people not having to budget their time,” Mary Walters-Clark, a resident, stated. Another resident, Scott Heinz, echoed similar sentiments. “I think it would be a new opportunity to lessen traffic load and good for visitors as well,” he said.
The tunneling startup has started bringing its Loop projects to international locations. It recently signed a memorandum of understanding with Dubai’s Roads and Transport Authority to explore the development of a 17-kilometer underground Loop network beneath Dubai.
Starlink gets its latest airline adoptee for stable and reliable internet access
Tesla nears closure of Full Self-Driving purchasing option
