Hey, I’m Steven and this is Solving The Money Problem.
If you’re new to the channel, welcome.
And to the regulars, g'day.
Don’t worry, this won’t take long.
Just over a month ago, I released my “Cybertruck is Engineering Genius” video.
In it, I explained why the Cybetruck looks so unique.
In short, its design is a manifestation of 4 underlying criteria:
Cost, Utility, Efficiency, Safety.
When consumers buy vehicles, they often do so with criteria like:
How many inches will it add?
What will my neighbours think?
Will it help me get a girlfriend?
Will it make a statement about who I am?
These criteria skew more towards ridiculous than rational, but that’s consumer behavior
for you.
However, when we talk about commercial buyers
--businesses, governments etc--a much more logical, rational,
utilitarian approach is taken.
A business doesn’t care about compensating for its bland personality or trying to look
rich.
It cares about the bottom line.
Cybertruck is MADE for rational buyers.
A typical commercial vehicle is driven FAR more frequently--and will take much more of
a beating--than a consumer vehicle.
This makes running and maintenance costs enormously important as they compound dramatically over
time.
It’s no contest when it comes to who wins the “cost of ownership” battle.
Not only is electricity far cheaper than gasoline per mile, but EVs have far less moving parts
and thus, require far less maintenance.
Tesla expects to have a million-mile battery and powertrain soon, which makes the Cybertruck
extremely tantalizing for commercial use.
And then we have autopilot.
Which demonstrably reduces the rate of accidents, and their associated costs.
So in this video, I’m going to speculate about the commercial potential for Tesla’s
Cybertruck.
As an investor--remember, Tesla makes up over 80% of my stock portfolio--I find it incredibly
exciting.
Commercial buyers are usually in the market for tens, hundreds or even thousands of vehicles.
This matters.
Cybertruck is tough as nails, competitively priced, fast as hell, super safe, secure,
extremely functional, has mountains of storage and costs a fraction of what an ICE vehicle
does to run and maintain.
So, what kind of commercial buyers would be interested in such a vehicle?
Maybe a better question is “What commercial buyers WOULDN’T be interested?”
Police
The Cybertruck and law enforcement are a perfect match.
Its bulletproof exoskeleton, absurd acceleration, room for 6, loads of secure storage, low running
costs, ability to take a beating and to drive in rough terrain makes Cybertruck an ideal
vehicle for cops.
In the US alone, there are hundreds of thousands of police vehicles in use.
Globally, they must surely number in the millions.
This is a huge market.
Just days after the Cybertruck unveil, forward-thinking police in Dubai and the Mexican city of San
Luis Potosí announced plans to add Cybertrucks to their fleets.
As more officers recognize the potential of Cybertruck, expect this trend to continue.
The Military
Another very obvious pairing is with the armed forces.
Army, Airforce, Navy, Marines, Coast Guard etc.
All of them need vehicles that are tough and reliable with plenty of storage.
The steel exoskeleton will make welding add-ons a breeze.
Need to mount a machine gun?
No worries.
Will Cybertruck replace tanks?
No.
Can it replace some ground vehicles?
Yes.
Is this a gargantuan opportunity?
YES.
Tradespeople and Construction Workers
Plumbers, landscapers, electricians, carpenters, painters, plasterers, tilers--you name it.
If your job involves tools, equipment and mess, there’s a high chance the Cybertruck
will be the vehicle for you.
Admittedly, Cybertruck won’t suit every tradesperson.
There will be special cases, like needing a flat bed, but with more storage than some
apartments, a built in air compressor plus 110 and 220 volt outlets eliminating the need
for a generator, and a secure rear bed, Cybertruck will be a great companion for many who get
dirty for a living.
And THAT is a lot of people.
Alright, look.
You guys are smart and I don’t want to keep repeating myself by saying:
“It’s tough, functional, packed with storage, fast and cheap to run”
so I’ll let YOU figure out why the Cybertruck will also appeal to many first responders,
emergency services, maintenance workers, repair people, security patrols, farmers, park rangers,
safari guides, couriers, solar installers, city workers, waste managers, bands, David
Attenborough’s film crew, paleontologists, robo-taxi fleet owners, zookeepers.
The point is simple.
Cybertruck has ENORMOUS commercial potential.
And it extends beyond those who get dirty for work.
Any organisation with a fleet of vehicles in regular use will find the economics of
Cybertruck compelling.
No paint chips, no dents, extremely low running costs, no oil changes.
Cybetruck is a true workhorse with extreme economic up-side.
Nevermind that many companies and governments are rightly feeling the pressure to transition
to sustainable vehicles.
And nevermind that many governments are legislating new ICE vehicles out of existence.
So how much will the commercial potential of Cybetruck add to Tesla’s revenue?
I have no f**king.
But I am sure of one thing.
It will be a lot.
As in, 3-commas-of-revenue.
That kind of “a lot”.
In the business world, economics trump aesthetics and utility trumps convention.
The utilitarian Cybertruck is simply too compelling to ignore in the commercial arena.
It’s easy as a consumer to completely overlook commercial customers, but believe me, Cybertruck
is going to be a hit in the business world, and this matters.
As companies, governments, cities, business owners and others around the world, run the
numbers and discover the economic case for Cybertruck, it’ll be hard to ignore.
And as a Tesla investor, this is music to my oversized ears.
Cybertruck is commercial genius.
The end.
I’m Steven Mark Ryan.
This is Solving The Money Problem, and I love you all.
Thanks so much for watching.
Let me know your thoughts in the comments below:
What commercial potential do you see for Cybertruck?
Will you be using Cybertruck for work or replacing your vehicle fleet?
Do you agree or disagree with anything I said?
And of course, if you have any ideas for future videos, let me know.
I read ALL you comment.
Yes, seriously.
I still read them all.
All 14,000.
p.s.
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