Tesla's Cybertruck Stalled As Key Supply Chain Manager Jumps Ship to Rivian, Causing More Delays

Tesla Inc.'s Cybertruck, the highly anticipated futuristic vehicle, has hit another roadblock as its supply chain lead, Mustapha El Akkari, has left the company to join Rivian Automotive Inc., a direct competitor in the electric truck market.

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 El Akkari, who played a vital role in managing the supply chain for the Cybertruck and other Tesla vehicles, will now serve as the senior director of structures and raw materials at Rivian. 

The timing of his departure is crucial, as the Cybertruck has faced significant delays under the watch of Tesla CEO Elon Musk, who is notorious for missing deadlines. Although Musk claims that the Cybertruck will be unveiled in the third quarter of 2023, his track record raises skepticism. This comes at a vital point for Tesla and the electric vehicle market as a whole. Tesla once enjoyed a near monopoly on the U.S. electric vehicle market but is now subject to stiff competition.

Due to the rise of electric vehicles, companies and startups have even begun expanding outside of just the car market as well. Companies like Volteq have begun creating all-electric construction equipment, as stocks like John Deere look towards their first all-electric tractor.

El Akkari’s move to Rivian is not an isolated incident — other key Tesla executives have also found their way to the rival company. Charly Mwangi, Tesla's former senior director of engineering, made the transition to Rivian after spending more than six years at Musk's company. Nick Kalayjian, who served as Tesla’s vice president of engineering for over a decade, has also joined Rivian. While Mwangi has since departed from Rivian, Kalayjian remains at the company as the chief product development officer.

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Tesla plans to host a delivery event for the Cybertruck later this year and aims to begin production during the summer. But Musk’s recent statement indicates that volume production of the Cybertruck won’t commence until 2024. 

In an investor call in April, Musk attributed the delay to the complexities of establishing the manufacturing line for such a groundbreaking product, stating, "It's not made in the way that other cars are made."

The prolonged delay of the Cybertruck can be attributed, at least in part, to Tesla’s unconventional choice of using stainless steel for its construction. Stainless steel costs more than the steel commonly used in automobile manufacturing. Its inherent properties make it resistant to stamping, causing it to spring back into its original shape, posing challenges in the production of fenders and other components. 

The Cybertruck’s unique design means that even small parts, like windshield wipers, have to be specially made instead of using off-the-shelf components. These factors collectively contribute to the complexity and intricacy of Cybertruck’s production. 

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Despite Musk’s unwavering enthusiasm for the Cybertruck, with claims that it is an "incredible product" and a "hall of famer," many of its actual capabilities remain uncertain. Musk previously touted its waterproofing abilities, suggesting that it could function as a boat and traverse various bodies of water. But the true extent of these features remains to be seen. 

The departure of El Akkari raises questions about the impact on Tesla’s planned delivery event in the third quarter. Given the numerous delays in the past, which have led to comparisons with Musk’s other ventures like Twitter Inc., it wouldn’t be surprising if the Cybertruck faces further setbacks.

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