diff --git a/elements/base/install.d/10-cloud-init b/elements/base/install.d/10-cloud-init
index c931d0b2..d696c1c7 100755
--- a/elements/base/install.d/10-cloud-init
+++ b/elements/base/install.d/10-cloud-init
@@ -7,6 +7,8 @@ fi
 set -eu
 set -o pipefail
 
+# cloud-init May not actually be installed
+mkdir -p /etc/cloud/cloud.cfg.d
 dd of=/etc/cloud/cloud.cfg.d/10_etc_hosts.cfg << EOF
 manage_etc_hosts: localhost
 EOF