Digby

Tesla just confirmed it will end Cybertruck production in 2027. I think it's one of the best case studies we have on managing customer expectations. Tesla received more than 1 million reservations for the Cybertruck. Our best estimate puts the real number closer to 2 million. That's demand most automakers can only dream of. Tesla delivered about 70,000 trucks in three years. You can point to a lot of factors: the design, the production ramp, quality issues, the brand's politics, competition. They all played a role. But they're small compared to the main one. Tesla promised a $40,000 truck with up to 500 miles of range. It delivered an $80,000 truck with about 300 miles of range. Those 1 million+ people didn't reserve the truck Tesla ended up building. They reserved a promise. When the product showed up at twice the price with 40% less range, most of them simply walked away. And you can't blame them. The lesson applies well beyond EVs: the expectations you set become the bar you're judged against. Overpromising can get you a huge order book, but it only turns into revenue if you deliver. Otherwise, you've just built a list of disappointed customers. Under-promise and over-deliver isn't a cliché. Tesla's Cybertruck is what happens when you do the opposite.