Cybertruck is Engineering Genius (and will be copied)

As Tesla's Cybertruck continues to break the Internet and provide fodder for endless memes, I put on my investor hat and explain 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 have been endless conversations and debates about polarizing design, but everyone seems to be missing one important fact. Its form is a manifestation of 4 key criteria that Tesla had in creating it. The Cybertruck MUST: 1.Be low cost (to produce, and therefore, to buy). 2. Have extremely high utility and performance (more than any comparable vehicle). 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-life visual example of what it means to remove complexity from a vehicle design. The vehicle manufacturing process is extremely complicated (production hell, anyone?). There are literally thousands of moving parts. The Cybertruck has been designed to be extremely efficient in manufacturing. This is very important. There isn't a single curve in sight for some reason.

The glass is flat. The body, a stainless steel exoskeleton, is folded from a single flat sheet of steel. Its robustness eliminates the need for a vehicle frame, freeing up space and weight. There are no body panel stamping machines. There is no paint shop. In fact, let's look at a WIRED video from a few years ago, showing how the Model S body is produced. Just to remind you. The Cybertruck's body, its exoskeleton, is created from a single laser-cut, scored, and bent sheet of steel. Done and dusted in a single process. With Cybertruck, EVERYTHING you just saw has become a single process.

Those gigantic stamping machines and special tools are really 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 factory in Chennai, India, that focused on reducing the cost and time of vehicles in the paint shop. The result of the investment of 500 million dollars? The plant's production more than doubled. Yes, ONLY speed up paint shop production by more than DOUBLE for the entire factory.

Cybertruck doesn't even NEED a paint shop. This greatly reduces the capital costs to get the production line up and running. More importantly, the time saved

will

be amazing. You no longer have to wait for the paint to dry. The bottom line is that Cybertruck has turned car manufacturing on its head. Tesla has aggressively innovated and eliminated enormous amounts of complexity. These new efficiencies

will

greatly reduce the COST and TIME required to produce a finished vehicle. This means that Tesla can make the Cybertruck very competitively while enjoying healthy margins and producing high volumes of vehicles with a very small footprint within its factories.

HIGH UTILITY/PERFORMANCE. Ultimately, function is important to rational buyers. Why do rational people buy trucks? For its function. Can you carry my tools? Hauling my boat? Throw away my caravan? Store my bike? The Cybertruck is as utilitarian as they come. Trucks are made to work. The work is complicated. The paint is peeling. The body panels get dented. Cybertruck eliminates both possibilities. No more crying over chipped paint or a dent in the bodywork. How about built-in 110 and 220 volt outlets? No generator required. Performance-wise, the Cybertruck outperforms everything in its price range in every major metric, from towing capacity to storage.

Speaking of. Not a square centimeter has been wasted. Cybertruck has more built-in storage than my first apartment. It's not even close. The design of the bed is ingenious. The retractable cover is a game-changer in terms of safety and convenience. The sliding 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 they could do within the limitations of the design and exoskeleton, in terms of storage, function, features and utility. There is nothing nearby. EFFICIENT. Tesla's powertrain and battery technology are best in class, there's no arguing that.

They are currently years ahead of the competition and the Cybertruck with a range of over 500 miles suggests that a groundbreaking battery announcement that will further boost Tesla's lead is just around the corner. I'm sure this has something to do with the Maxwell acquisition. Having incredibly efficient batteries is one thing, but optimizing the vehicle involves reducing weight and also increasing aerodynamics. The Cybertruck's “marble”-looking dashboard 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 strong, the fame of a traditional vehicle is not necessary, reducing overall weight.

At first glance, the Cybertruck may look like an aerodynamic nightmare, but if we overlay an aerofoil we can see that the shape of the truck almost perfectly matches the shape of the aerofoil. It is the most aerodynamic a vehicle can be, within reason. What these efficiencies mean is that the Cybertruck's energy cost per mile is dramatically lower than any gasoline- or diesel-powered vehicle AND it's also miles ahead of any electric competition. SURE. Tesla currently produces the safest, second and third safest vehicles in the world. 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 designed with safety first. Maybe you saw the deck demonstration. The steel is fucking strong and the angular shape of the exoskeleton creates an extremely rigid shell. Triangles are difficult. Steel is hard. Cybertruck is tough. Hopefully, Tesla will reveal more safety details soon, but it's obvious, even with a very quick glance, that the Cybertruck, structurally, is an extremely strong, rigid and safe vehicle. Let's recap. Tesla's Cybertruck is function over form, with a touch 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. Insurance. It's all these things. The Cybertruck is cheap, fast and efficient to produce (from a small factory). The Cybetruck is affordable for the mass market and has a starting price of US$39,900. The Cybertruck has MANY more features than anything else in its price range. The Cybertruck beats anything else in its price range. The Cybertruck is tremendously efficient and has a much lower cost of ownership than anything comparable. The Cybertruck is super safe. Ah yes, autopilot. So what does this mean? No other automaker can compete with Tesla on ALL FOUR fronts: cost, utility, efficiency and 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 design will become the new normal for function-based vehicles. Consumers who want to get the most bang for their buck will no longer be willing to pay for poor performance or functionality. Stubborn automakers will watch in dismay as Tesla eats their lunch. Others will timidly copy Tesla's design to compete on costs. Most of them will arrive too late. Due to its simplicity, Tesla will be able to produce Cybertrucks VERY quickly from a small factory. Add to this the potential of Maxwell's dry battery electrode technology, which would reduce costs and free up huge amounts of space in existing factories, and we could see Cybertrucks rolling off production lines at an incredible rate.

From a Tesla investor's point of view, this is great news. For existing automakers, the message is clear: copy the Cybertruck or you'll go out of business. So what do you guys think? Do you think everyone will be forced to adopt the Cybertruck design because it is so efficient and cost-effective to produce that if they don't, they simply won't be able to compete with Tesla on any meaningful metric like cost? Or do you think I'm completely crazy and should quit smoking weed? By the way. I'm not going to. If you liked the video please hit the like button, leave a comment below, share your thoughts and if you have any ideas for new videos I would love to hear from you and of course if you enjoy this type of content and if you want to see Plus, subscribing to the channel would mean a lot to me.

I'm not doing this to generate income, but because I want to share what I think I know and open my investing path. So I'd love to get your feedback and I'd love for you to contribute ideas for future videos. Until then, I'm Steven Mark Ryan, this is Solving the Money Problem and I love you all.