By Abhirup Roy, Hyunjoo Jin and Chavi Mehta
SAN FRANCISCO (Reuters) -Tesla's pricier-than-expected Cybertruck pickup, offbeat on the outside, drives and feels like its Model X SUV on the inside, said Reddit co-founder Alexis Ohanian, who was among the first dozen customers to pick up the vehicle on Thursday.
"This is the start of an epic journey," Ohanian said as he live-streamed his first drive of the Cybertruck on social media platform X. "Initial feeling about this vehicle - smooth, drives a lot like my Model X. It is big but not unwieldy."
The Cybertruck, two years behind schedule, enters a hot pickup truck market to compete with the likes of Ford's F150 Lightning, Rivian Automotive's R1T and General Motors' Hummer EV.
Starting at $60,990, the Cybertruck is over 50% more expensive than what CEO Elon Musk had touted in 2019 and is expected to draw a niche, affluent clientele, at least initially.
But for many others like Texas-based financial services executive Christian Cook, who booked a Cybertruck after Musk's promise of a cheaper pickup that travels farther on a single charge, Thursday's reveal was a disappointment.
"The truck pricing and range is a huge let down," Cook, who drives a Model 3 and had made certain financial decisions based on his plans to buy a Cybertruck, told Reuters. "My respect for Musk has taken a huge hit. My loyalty to Tesla has taken a huge hit."
CFRA analyst Garrett Nelson said the steep price tag will lead to customers cancelling reservations and expects Tesla to adjust the pricing based on demand going ahead.
Still, the Cybertruck, made of shiny, bullet-proof stainless steel and inspired from a car-turned-submarine from a James Bond movie, is likely to uplift Tesla's brand that has been dented from steep price cuts to boost demand, according to analysts and branding experts.
"The Cybertruck gets a lot of attention. It brings Tesla back top of mind," said Spencer Imel, a partner at consumer insights firm Langston, adding it will "improve perceptions of Tesla as being a unique brand."
"But we don't see it helping Tesla gain ground in terms of becoming a mass market brand and competing with brands like Ford that are serving the everyday car buyer," he said.
Indeed, the electric pickup's price and longer wait time for significant financial payoff left analysts concerned and sent Tesla shares down about 2% on Friday.
Cybertruck will not do much for Tesla's financials next year, analysts said. Bernstein forecast 250 deliveries this year and 75,000 for next year, saying both "may be ambitious".
Musk has said Tesla was likely to reach a production rate of roughly 250,000 Cybertrucks a year in 2025.
The company has repeatedly warned that it would face significant challenges in ramping the product and becoming free cash flow positive - likely not until mid-2025 - which could negatively impact profitability.
"Tesla has a product problem - i.e., an older line-up that does not address enough of the market, and has no new mass market offerings until likely late 2025," Bernstein analysts added.
A brand refresh will be critical for Tesla, especially at a time when the company is battling softening electric-vehicle demand as well as rising competition.
Despite worries about broader acceptance and affordability, the initial craze around the Cybertruck is evident on the road for customers like Ohanian.
"Lots of thumbs up, I feel very popular," he said after greeting another driver at a red light on his way to Florida. "I'm going to be the coolest dad dropping my daughter off at school. That's ultimately the goal."
(Reporting by Abhirup Roy and Hyunjoo Jin in San Francisco and Chavi Mehta in Bengaluru; Additional reporting by Samrhitha Arunasalam; Editing by Devika Syamnath and Maju Samuel)
