Cybertruck is Engineering Genius (and will be copied)


As Tesla’s Cybertruck continues to break
the internet and supply fodder for endless memes, I’m putting on my investor hat and explaining
why the Cybertruck is pure genius and what it means for Tesla’s bottom line. First of all, the Cybertruk HAD to look the
way it does. There’s been endless talk and debate about
the polarizing design but everyone seems to be missing an important fact. Its form is a manifestation of 4 key criteria
Tesla had in its creation. The Cybertruck MUST: 1.Be low cost (to produce, and therefore,
to buy). 2. Have extremely high utility & performance
(more than any comparable vehicles). 3. Be very efficient (aerodynamic, light). 4. Be safe. Let’s look at each of these in detail. LOW COST The cheaper a vehicle is to produce, the cheaper
it can be sold (which expands its market) and/or the better its margins can be. The Cybertruck is a real, visual example of
what removing complexity from a vehicle design does. The process of manufacturing a vehicle is
extremely complicated (production hell, anyone?). There are literally thousands of moving parts. The Cybertruck has been engineered to be extremely
efficient to manufacture. This is VERY important. There isn’t a single curve in sight for
a reason. The glass is flat. The body–a stainless-steel exoskeleton–is
folded from a single flat sheet of steel. Its sturdiness eliminates the need for a vehicle
frame, freeing up space and weight. There are no stamping machines stamping body
panels. There is no paint shop. In fact, let’s look at a video from WIRED
a few years back, showing how the Model S body is produced. Just to remind you. The Cybertruck body–its exoskeleton–is created
from single sheet of steel which is laser cut, scored and folded. Done and dusted in one process. With the Cybertruck, EVERYTHING you just saw
has become a single process. Those gigantic stamping machines and special
tooling machines are really freaking expensive and slow. Cybertruck doesn’t need them. The time and complexity involved in assembling
all those body parts is enormous. Cybertruck doesn’t need them. The paint shop is extremely expensive in cost
and time. Cybertruck doesn’t need it. How expensive are we talking? Here’s an article about a $500 million upgrade
for Ford’s Chennai factory in India which focused on reducing cost and time of vehicles
in paint shop. The result of the half-billion-dollar investment? The plant’s output more than DOUBLED. Yes, JUST speeding up the paint shop more
than DOUBLED output for the entire factory. Cybertruck doesn’t even NEED a paint shop. That greatly reduces capital costs to get
the production line up and running. More importantly, the time saved will be staggering. No more waiting for paint to dry. The bottom line is Cybertruck has flipped
auto manufacturing on its head. Tesla has innovated aggressively and deleted
enormous amounts of complexity. These new efficiencies will greatly reduce
the COST and TIME involved in producing a finished vehicle. This means Tesla can [price] Cybertruck very competitively while enjoying healthy margins, and produce large volumes of
vehicles from a very small footprint within their factories. HIGH UTILITY/PERFORMANCE. When it boils down to it, function matters
to rational buyers. Why do rational people buy pickup trucks? Because of their function. Can it carry my tools? Haul my boat? Pull my caravan? Store my bike? The Cybertruck is as utilitarian as it gets. Trucks are made to work. Work is messy. Paint gets chipped. Body panels get dented. Cybertruck eliminates both of these possibilities. No more crying about chipped paint or a ding
in the body. How about built-in 110 and 220 volt power
outlets? No generator required. Performance wise, Cybertruck smokes everything
in its price range on every metric that matters from towing capacity to storage. Speaking of. Not a square inch has been wasted. Cybertruck has more built in storage than my first
apartment did. It’s not even close. The design of the bed is ingenious. The retracting cover is a game-changer for
security and convenience. The slide-out ramp to allow easy access
to the bed is brilliant. I could go on and on and on. The point here is that Tesla has thought about everything that they could possibly do within the constraints of the design and the exoskeleton, for storage, function, features and utility. Nothing is close. EFFICIENT. Tesla’s powertrain and battery technology
are best-in-class, there’s no argument about that. They’re currently years ahead of the competition and the 500+ mile range Cybertruck suggests a battery breakthrough announcement is around
the corner which will push Tesla’s lead out further. I’m sure this has something to do with the Maxwell acquisition. Having awesomely efficient batteries is one
thing, but optimising the vehicle involves reducing weight and increasing aerodynamics
too. The “marble” looking dashboard of the
Cybertruck is actually made of paper to reduce weight. Its 3mm steel exoskeleton is heavier than the
aluminum often used in bodies, but because it is so sturdy, a traditional vehicle fame
is not necessary which reduces overall weight. At first glance, the Cybertruck may look like
an aerodynamic nightmare but if we overlay an airfoil we can see that the shape of the
truck is almost perfectly matcheed by the shape of the airfoil. It’s about as aerodynamic as a vehicle can
get, within reason. What these efficiencies mean are that the
energy cost per mile for the Cybertruck is dramatically less than any gasoline or diesel
powered vehicle AND it’s miles ahead of any electric competition as well. SAFE. Tesla currently produces the safest, second-safest,
and third-safest vehicle on earth. Let me repeat that. THE THREE VEHICLES TESLA CURRENTLY PRODUCES:
The S, 3 and X–are the 3 safest vehicles ever tested. Tesla takes safety seriously and despite its
brutalist appearance, the Cybertruck is engineered for safety first. Maybe you saw the sledge-hammer demo. The steel is strong as f**k and the angular
shape of the exoskeleton creates an extremely rigid shell. Triangles are tough. Steel is tough. Cybertruck is tough. Hopefully Tesla will reveal more safety details
soon but it’s obvious even from a very quick glance that the Cybertruck, structurally, is an extremely sturdy, rigid and safe vehicle. Let’s recap. Tesla’s Cybertruck is function over form,
with a hint of style sprinkled over the end result. When creating the Cybertruck, Tesla started
with a blank slate and 4 requirements: It had to be: 1. Cheap. 2. High utility/performance. 3. Efficient. 4. Safe. It is all of these things. The Cybertruck is cheap, fast and efficient to
produce (from a tiny factory footprint). The Cybetruck is mass-market-affordable, starting
at $39,900 US dollars. The Cybertruck has MUCH more function than anything
in its price range. The Cybertruck outperforms anything in its
price range. The Cybertruck is efficient as hell, way lower
cost of ownership than anything comparable. The Cybertruck is super safe. Oh yeah, autopilot. So what does this mean? No other auto maker can compete with Tesla
on ALL FOUR fronts: cost, utility, efficiency & safety unless they copy everything — including
the exoskeleton cut and folded from a single sheet of steel. Oh, and then they still need to somehow have
equivalent battery technology OR suffer lower margins. My prediction? Cybertruck’s design will become the new
normal for function-based vehicles. Consumers who want bang for their buck will
no longer be willing to pay for substandard performance or functionality. Stubborn automakers will watch in dismay as
Tesla eats their lunch. Others will sheepishly sheepishly copy Tesla’s design to compete on cost. Most of them will be too late. Due to is simplicity, Tesla will be able to
produce Cybertrucks VERY rapidly from a tiny factory footprint. Add to this the potential of Maxwell’s dry
battery electrode technology which would reduce costs and free up massive amounts of floor
space in existing factories and we could see Cybertrucks rolling off production
lines at unbelievable rates. From a Tesla investor’s point of view, this
is great news. For existing automakers, the message is clear: Copy Cybertruck or go bankrupt. So, what do you guys think? Do you believe that everyone is going to be forced to the Cybertruck design because it’s so efficient and cost-effective to produce that if they don’t, they simply will not be able to compete with Tesla on any meaningful metrics like cost? Or do you think that I’m completely crazy and I should stop smoking pot? By the way. I’m not going to. If you enjoyed the video hit the like button, leave a comment below, share your thoughts and if you’ve got any ideas for new videos, I’d love to hear from you and of course, if you enjoy this kind of content and want to see more, subscribing to the channel would mean the world to me. I’m doing this not to produce income but because I want to share what I think I know and open-source my investing journey. So I’d love your feedback and I’d love you guys to contribute ideas for future videos. Until then, I’m Steven Mark Ryan this is Solving The Money Problem and I love you all.