The long-awaited Cybertruck from Tesla (TSLA.O) will be priced at $60,990, more than fifty percent more than CEO Elon Musk advertised in 2019. Analysts believe this price point would attract a restricted group of wealthy purchasers.

According to Musk, the truck, constructed out of bright stainless steel and fashioned like flat planes, was partially inspired by a car that was transformed into a submarine in the James Bond film “The Spy Who Loved Me,” released in 1977.

The production process has become more complicated and expensive due to its unique and futuristic appearance and its new body material. Additionally, it risks alienating traditional pickup truck consumers primarily concerned with practicality.

On the other hand, Musk stated on Thursday that the Cybertruck has “more utility than a truck” and is “faster than a sports car.” He has priced the three vehicle types at $60,990 and $99,990, respectively.

During an event in Austin, Texas, he drove a Cybertruck onto a stage, which was met with cheers from the audience. Subsequently, he handed away automobiles to approximately a dozen clients.

“Finally, the future will look like the future,” he stated regarding the truck’s design. He displayed a video of the Cybertruck pulling a Porsche 911 and winning a brief race against another gasoline-powered 911.

Following a price drop of 1.6% at $240.08, Tesla shares had a 2% decline during extended trading.

However, the pricing of the vehicles was displayed on Tesla’s website, even though Musk did not disclose them specifically during the ceremony. Both the all-wheel drive trim, which begins at an estimated $80,000, and the ‘Cyberbeast,’ which is the variation with the maximum performance, will be available the following year.

In 2025, the rear-wheel drive variant, which is the least expensive and has an anticipated beginning price of around $61,000, will be available.

This will appeal to a wealthier audience that can afford the price point, and they want something distinctive and quirky,” said Jessica Caldwell, head of insights at Edmunds, a vehicle research business. “This is going to appeal to a wealthy crowd.”

“That just isn’t a large segment of the population that can afford that, especially where interest rates are.”

More than one million people signed up for reservations for the Cybertruck after Musk predicted in 2019 that it would be sold for forty thousand dollars. These individuals each put down a deposit of one hundred dollars. Even though the prices of raw materials for electric vehicles increased, he did not provide updated pricing until Monday.

According to Musk’s statement on Thursday, new deposits are $250. According to Paul Waatti, an analyst at the consultancy AutoPacific, the price is not something that many people are surprised by. In an interview with Reuters before the event, Waatti stated that the Cybertruck would do well with a more limited crowd.

To compete with other pickup trucks such as Ford’s (F.N.) F150 Lightning, Rivian Automotive’s (RIVN.O.) R1T, and General Motors (GM.N.) Hummer EV and Cybertruck, they have entered the market two years behind schedule. In contrast, the pickup truck industry is highly competitive.

Rivian’s R1T may be purchased for $73,000, whereas the F-150 Lightning can be purchased for around $50,000. The bigger and more powerful Hummer EV truck has a price tag of more than $96,000.

For Tesla to maintain its reputation as a manufacturer of revolutionary automobiles, the Cybertruck, the company’s first new model in almost four years, is essential. When the firm is struggling with a decreasing demand for electric vehicles (EVs) and an increase in competition, Cybertruck is also essential for generating sales, albeit not to the same extent as the company’s high-volume Models 3 and Y.

In the previous month, Musk downplayed investors’ expectations by highlighting difficulties in ramping up manufacturing. It warned that the product would take between a year and 18 months to contribute substantially to cash flow.

On Wednesday, a separate topic attracted the media’s attention when Musk gave a profane interview to the New York Times. This interview was given in advance of the launch. It was due to antisemitic comments that marketers abandoned his social media network X, which was formerly known as Twitter. He denounced the advertisers.

He made the following statement about the vehicle on Thursday: “It is basically a beneficial truck. Not only is it not some grandstanding spectacle like I am, but it is also”

RANGE THAT IS CONSIDERABLE

The version of the Cybertruck with the most extended range can travel around 340 miles (547 kilometers), and it comes with a “range extender” or an additional battery pack that further expands its range to 470 miles.

At the beginning of 2019, Musk stated that the truck could travel at least 500 kilometers on a single charge.

“As a truck, the Ford and Chevy are more useful and certainly easier to see out of,” said Sam Abuelsamid, principal research analyst at Guidehouse Insights. “The Chevrolet is also more practical.”

“Given that Teslas almost always fall short of range estimates in real-world driving by anywhere from 10% to 20%, I wouldn’t expect the longest-range version of the Cybertruck to achieve more than 300 miles on the road,” he said, pointing out that the Chevrolet Silverado E.V. is capable of exceeding its 450-mile rated range. “Considering that Teslas almost always fall short of range estimates in real-world driving,” he said.

Tesla is expected to attain a manufacturing pace of around 250,000 Cybertrucks per year by the year 2025, according to statements made by Musk. On Thursday, he did not provide it with an update.

Franz von Holzhausen, the head designer of Tesla, brought a metal ball to demonstrate the truck’s indestructible “armor glass” window during the 2019 unveiling, but he shattered the ball.

On Thursday, Holzhausen attempted to blow a baseball through the window of the Cybertruck, but it was unsuccessful.