Tesla Drops BOMBSHELL on Pickup Truck Industry

Tesla's on the verge of unleashing chaos into the automotive industry with its highly anticipated cyber truck after enduring a multi-year delay the Cyber truck has faced its share of Skeptics dismissing its distinctive sharp angled design and technologically advanced features as beyond belief doubting if it would ever see the light of day however to the surprise of the naysayers the first production versions have now become a tangible reality as they've begun rolling off the assembly line and customer deliveries are confirmed to take place before the end of the year Elon Musk himself has teased that the impact of the Cyber truck's arrival will catch everyone off guard with nobody expecting the magnitude of disruption it could bring to the pickup truck Market while it hasn't sunk in yet for everyone Ford Motor Company is addressing this matter very seriously recognizing the gravity of this situation Ford is already taking drastic action slashing the price of their F-150 Lightning EVS by up to ten thousand dollars on the very day of the Cyber truck's first release candidate announcement Elon Musk isn't kidding around when he says the Cyber truck will look far into the future and bring that technology to the present this prospect leaves Ford and other top pickup truck manufacturers in the dark facing uncertainty as they have the most at stake in this rapidly evolving landscape brace yourself for the Cyber truck is about to wreak havoc in the Auto industry like never before and before we continue stop using Yahoo finance stop using Google Finance and have a look at our website the market isopened.com where we have instant stock quotes and a brand new set of quarterly financial data going back up to 15 years on over 9 000 stocks and it's all freely available the Cyber truck was first unveiled in November 2019 with production of the Dual and tri-motor variants initially slated to commence in late 2021 however despite the Cyber truck's two-year delay the pickup truck industry appears to be Frozen at an effective standstill like a deer caught in the headlights of an impending cyber truck companies like Ford stalantis and General Motors which completely owned the current pickup truck Market have been talking a big electric game but have so far failed to deliver any meaningful numbers Ford sold 4291 electric F-150 lightnings in the first quarter of the year with GM delivering just two Hummer EVS during this time even startup rivian is outpacing both industry juggernauts with almost 8 000 deliveries in the same period demonstrating that being experts at building combustion engine Vehicles hasn't aided in any way a although all of these companies still lose money on every electric vehicle sold Elon Musk set out to reimagine the pickup truck drawing inspiration from Sci-Fi movies and pushed for something edgier than the automotive Market has seen before this led to cyber truck's stainless steel planer design since the cold rolled steel can't be stamped like traditional cars as it breaks the stamping press however this spawns a scratch and dent resistant vehicle similar to a tank that can outrun a Porsche and now it may wreck the industry in the same way that it can leave its pickup truck vehicle pierced in the dust Tesla shared its first release candidate last week which indicates that the truck was successfully built through the entire production line process this development is scarier for competitors than the truck itself since it signals Tesla's Readiness to scale to mass production given their impressive track record they're highly likely to outpace established automakers like Ford Ford has been delivering F-150 lightnings since April 2022 over a year ago but hasn't seen any meaningful production increase during this time period where the vehicle has had the entire electric pickup truck Market virtually all to itself Tesla is currently cycling through release candidates making small tweaks to the vehicle's design into the factory Machinery that builds it before they settle on the vehicle that they want to truly Mass produce but the equipment is operational and when Tesla gears up for scaling in 2024 they'll Eclipse other electric pickup truck sales and begin to make a dent in the internal combustion engine versions Ford's ten thousand dollar price slashing of the F-150 Lightning on the day the Cyber trucks release candidate was unveiled isn't a coincidence it's evident that consumers are eager for the Cyber truck and as we discussed in our previous previous video the F-150 lightnings are piling up on dealer lots and so consumers who were looking at what was available now on the market were previously only seeing F-150 lightnings rivians Etc but will now shift their orders towards the next vehicle becoming available the hotly anticipated cyber truck as Sam cores of research and investment firm Arc invest notes the popularity of the Cyber truck on Google Trends surpasses even that of the model Y which recently became the best selling car in the world during Tesla's second quarter conference call Elon Musk went as far as saying demand is so far off the hook you can't even see the hook with an estimated near 2 million pre-orders for the Cyber truck it's likely that Tesla will take at least a few years to fulfill them especially if they produce just 250 000 cyber trucks per year the estimated Target of the Giga Texas per production line however given this overwhelming demand Tesla could decide to increase investments in production capacity which will further decimate the existing ice pickup truck Market now one of the biggest reveals during Tesla's recent second quarter conference call was that the company is preparing to launch the next generation of its 4680 battery cell which they're calling the Cyber cell and it seems to be specifically designed for the Cyber truck at least so far the Cyber cell will have 10 higher energy density than the current battery cells being produced for the model y now interestingly Tesla's senior vice president of Powertrain and Energy Engineering Drew baglino says that this was accomplished through process and mechanical design optimization so it's not some sort of new chemistry that they've implemented but rather looks to involve a Next Generation production line of 4680 cells that contains further optimizations affecting the battery design itself this appears to be quite significant since it will also positively impact Tesla's future production lines from here on allowing them to build more battery cells but also to boost the range of vehicles even further with the same number of cells or put in fewer cells saving cost for the same range and Tesla hasn't even yet implemented some of the important Innovations and processes that they talked about on battery Day in 2020 including the in-house cathode production and their integrated silicon methods these Innovations will still be coming down the pipeline in the near future and so there will be much more room for further gains in energy density and cost improvement with these further enhancements leading to lower cyber truck prices down the road but for now it looks like the current cells are sufficient for Tesla's cyber truck release plans from a technological standpoint now Elon Musk has always spoken about there not being a point in releasing a new type of product if the company was battery constrained since it would be pulling batteries away from one product and giving it to another which would actually hurt the company's profitability given the extra overhead of a second product but since Elon Musk is moving forward with a cyber truck it looks like they have all of their Ducks lined up in a row with enough battery cells for model y including from suppliers Giga Texas makes its own 4680 cells which find themselves within model wise and production has been progressing quickly with Drew baglino stating that between q1 and Q2 of this year there was an 80 percent increase accompanied with a reduction in scrap by 40 percent helping costs of goods sold dropped by 25 percent that seems massive in terms of cost cutting to be able to produce that many more cells but at a fraction of the cost per cell in terms of the battery's energy density Tesla says that it's meeting their targets for like-for-like electrochemistries meaning that the new 4680 batteries are performing much better as they expect compared to the same chemistry in a different type of cell also based on the Q2 conference call comments from Drew baglino it looks like Tesla may have changed their mind it was thought that 4680 cell production was on Pace to keep up and to stay ahead of cyber truck production but now it looks like all of the cells Tesla is currently producing will go towards model y in the new Cyber cell production line will be starting from scratch but aimed at the Cyber truck albeit with a higher energy density Tesla is planning to scale cybercell through the end of this year into early next at which point they will see favorable costs per cell that said Elon Musk has emphasized once again that cyber truck production will move at the rate of the slowest part which is something to be aware of when bringing up a new production line for Batteries however based on Tesla's previous ramp UPS they normally don't deliver too many via vehicles on their delivery day announcements 30 Vehicles has been fairly common for the company and then the ramp up is very slow during the first few months Tesla has confirmed that deliveries will very likely begin this year and then the real ramp up phase will be in 2024 with all of the new technology going into cyber truck it's likely that it will be slow to produce at first battery cells is one thing but also this is the first time that Tesla will be developing 85 percent of the controllers that go into the vehicle in-house up from 61 percent on the model Y which means they're going to be ramping up production of many new components that they haven't traditionally made and each of these has its own s-curve shape ramp up they of course all need to line up but balancing this is always a challenge with a new product however once Tesla gets going these in-house controllers will allow for better integration and to reduce cost us as they scale since they're cutting out the middlemen one of the cool things about the Cyber truck is also that it doesn't require any paint shop Tesla showed at their investor Day event that to paint the car they need to assemble the vehicle have it painted then disassemble it by taking off things like the doors and other components basically bake them dry in a separate area which takes up space and then later reassemble the vehicle cybertruck gets rid of all of this no painting robots no paint itself and much less Factory floor space required that's one of the things Tesla means when they say it's designed to be manufacturable plus the benefits that come with this for the consumer is that there's no rust to worry about since it's a stainless steel body it's scratch and dent resistant and it's super strong bulletproof to a nine millimeter bullet but this process or lack of process saves many steps increasing the speed at which cyber trucks can be made and so while the ramp up could start slow due to all the new technology that Elon Musk has emphasized so many times once they cross that initial hurdle they'll have more control over each component and the truck should be much faster to make no other automaker has anything like this and that's why Tesla is seeing unprecedented demand Tesla originally designed the Cyber truck to beat the Ford F-150 in every way and then some setting their targets on the best selling pickup truck in the world by having the Cyber truck pull it up a hill in a public stunt the Cyber truck is tougher faster it has an automated tamper door for its Vault and uses a 1 000 volt architecture the same as the Tesla semi for much faster charging Tesla even matched the dimensions of the F-150 vehicle however ever since the unveiling of the Cyber truck Elon Musk has spoken about making the vehicle one to three percent smaller and in the recent conference call it appears that he succeeded in achieving this the Cyber truck is the first truck ever according to Elon that will have four doors and over six foot bed and will fit into a 20-foot garage which is a typical standard length garage this is a big deal for many customers and a big selling point it looks like Tesla tried very hard to make this happen since they previously touted a 6.5 foot bed and that seems to be slightly smaller now to get the best of both worlds the garage aspect is a big advantage since it helps in harsh Winters no need to clean off the car security reasons as well and for better Conformity to standard destination parking spots whether indoors or out and so the Cyber truck has sort of become a one-size-fits-all vehicle which is one of the major intentions in order to propel it into the top selling position now according to CFO Zach kirkhorn the single most important priority is to ensure that Tesla continues to make heavy investments in core Technologies driving long-term value including the Cyber truck as well as next-gen vehicles and the Tesla semi despite this Elon Musk acknowledges a slight production decrease due to summer shutdowns for various Factory upgrades globally this won't affect the Cyber truck at all since it's barely in production but will allow Tesla to reorganize and revamp their Factory preparing for the Cyber truck ultimately leading to higher production in the following quarters looking ahead Elon Musk believes that the health of the economy will be a major factor in driving demand volume to new heights which bodes well for sustained long-term cyber truck demand additionally Tesla mentioned that they're currently reaping the benefits of declining aluminum and steel prices which will also become major inputs into the Cyber truck production process helping to lower its price while the price pricing of the vehicle has not yet been re-announced inflation has sent everything much higher Tesla's best bet which Elon Musk alluded to not too long ago at the end of 2021 was to start with a four motor variant which wasn't even an option when the original configurator was made available Tesla has always started with the highest and most profitable models and in this case in particular it's a great strategy since Tesla can set the pricing to whatever they want without disappointing anyone since no one has an order for a four motor variant they then allow reservation holders to change their orders if they want and then ramp up volume as they wait for cost to continue to fall before releasing and pricing other variants with fewer Motors it's evident that the year 2023 belongs to the Cyber truck the Q2 earnings slide deck speaks volumes usually displaying a variety of pictures from Tesla's different gigafactory operations but this time every single photo is dedicated solely to the Cyber truck showcasing its undeniable significance in Tesla's accomplishments Elon musk's excitement is palpable as he eagerly anticipates the Cyber truck becoming his personal vehicle remarkably this enthusiasm has been unwavering since the truck's Inception the demand for the Cyber truck has been nothing short of impressive cementing its position as a true Game Changer in the world of electric vehicles consumers appear to be flocking in from various segments including previous pickup truck buyers and other ice Vehicles like SUVs this unprecedented surge in interest has the potential to wreak havoc in the pickup truck Market creating a seismic shift that could prove devastating for ice automakers so do you think the other pickup truck makers are in trouble once the Cyber truck scales up and when will Tesla's cyber truck volume hit a meaningful level say a hundred thousand trucks per year don't forget to watch my last video on if Toyota's solid-state battery can compete with Tesla please hit the like button and subscribe we would really appreciate that and a huge shout out to all of our patrons that helped us support our Channel by joining us your support helps us to continue to make great content thank you guys so much for watching

Channel: TMIO Tesla

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Keywords: tesla, elon musk, cybertruck, Tesla Cybertruck will Wreck the Pickup Truck Industry, Tesla Cybertruck SPOOKS Ford, Cybertruck Update NEW CYBER CELL, The Tesla Cybertruck Is Officially HERE!, The Real Reason Tesla Developed the Cybertruck, Imminent Cybertruck Release Prepares for Automotive Industry Disruption, Tesla 4680 Battery Cyber Cell is HERE!, Tesla Unveils NEW Cybertruck Battery Cell

Id: gfkscVQ1iyQ

Length: 17min 41sec (1061 seconds)

Published: Tue Jul 25 2023