Why Cybertruck could be the gift that keeps on giving to Tesla

Originally published in January 2024

Tesla’s standing in building the EV industry is unquestioned. Along this way, it has been known for a formulaic, yet effective car, until now. Enter Cybetruck.

This vehicle – so different from the past – defines the brand on a long-term go-forward in the following ways, among others:

1. 1. The Cybertruck advances Tesla’s innovation culture. From, among others, offering a direct-to-consumer sales option, constructing a national charging network and the aggressively proliferating BEVs, Tesla’s brand is predicated on innovation through bold moves. Cybertruck reinforces that innovation, and in some cases, does so in granular detail. Its stainless steel exoskeleton, the first of its kind since the DeLorean of the 1980s, provides greater resistance to rust and body damage from dents and scratches. It’s also potentially safer for passengers in collisions because of its thickness. And Cybertruck’s 48V electrical network architecture is an upgrade from the conventional 12V architecture in use today. As Interesting Engineering reports, this architecture enables more efficient power transmission as higher electrical loads pass through smaller cables. Speaking of detail, even the at-rest position of the single windshield wiper blade is vertical, which Tesla claims allows for a most a more aerodynamic drive via the largest automotive windshield on the market today.
   2. The Cybertruck establishes exterior body design distinction for Tesla. And for the first time. The 2008 Roadster body design was influenced by Lotus. And since the Model S launched in 2012 (which you could argue was influenced by Jaguar), Tesla BEVs have followed a body style highlighted with a characteristic half-dome shape. Characteristic to Tesla, yes, but hardly distinct. In my opinion, (1) Tesla never earned this body design distinction – this was bestowed upon it by default because of its first mover advantage and aggressive expansion and (2) its body design was consistently outdone by the HEV and PHEV segment, which had the benefit of borrowing from its ICE cousins. Today, BEVs have surpassed this ‘distinction by default design’, as we see with Lucid Air and Fisker Ronin, among others. Through Cybertruck, however, Tesla legitimately earns design distinction because it is not the first BEV entry into the pick-up segment. Formidable opponents – the Rivian R1T, the F-150 Lightning and the Silverado EV – already exist. And, as much as I am a fan of the R1-T, it doesn’t have the body distinction of the Cybertruck. That aside, perhaps imitation is the best form of acknowledging this distinction. Emerge the Aitekx Robotruck, a less flattering knock-off with duller lines, uneven panel gaps and even a 2nd-row door that consistently looks like it doesn’t close the full way.
   3. The Cybertruck allows for Tesla to connect to a new niche: the ‘hard-core’ pickup user. Generally, Tesla’s launch vehicles have initally appealed to the environmentally hyper-conscious, the status seeker and the tech savant. And at launch, most of this group are Innovators and Early Adopters. Cybertruck, as Tesla’s first entry into the pickup segment, will continue this trend within the pick-up niche. But, the paradigm shift for Tesla lies in Cybertruck’s potential to penetrate the heavy users within the segment. That is specifically those that use their trucks as work trucks. For a few years now, there has been online support (including from consumers themselves) for Cybertruck as a legitimate work truck. With a towing capacity (11,000 lbs.) higher than the F-150 Lightning (10,000 lbs.) and a payload capacity (2,500 lbs.) higher than both the Lightning (2,235 lbs.) and the Rivian R1T (1,764 lbs.), you can understand why. Cybertruck’s in-market performance with this niche will be interesting to watch long-term, especially from the standpoint of durability and reliability. Perform well in this segment, and it starts a foundation of credibility for Tesla’s future industrial/commercial entries between Class 3 and Class 7 (should it elect to go there) and even support the growth of the Class 8 Semi.
   4. The Cybertruck legitimizes Tesla as a lifestyle brand for the adventurer /outdoor enthusiast niche. So, Tesla’s launch and existence for years was an appeal to the environmentally-conscious lifestyle, as discussed above. Through Cybertruck, however, Tesla and its partners do much to legitimize it as a brand for the adventurer/outdoor enthusiast. Yes, it has rugged good looks to start with. And yes, Tesla hasn’t been shy about marketing images that show it off the beaten path. But, that aside, the construction of (1) Tesla’s Basecamp portable campsite accessory and (2) mobile home technologies such as Cyberlandr are but two examples of innovative initiatives to legitimize the Cybertruck as the adventurer’s ‘go-to’ companion. Rivian must be paying attention.
   5. The Cybertruck appeals to the niche of children, tweens and teens, an important influencer niche in the car-buying decision. What?! Yup. The Cybertruck has infused a fresh coolness into Tesla brand among this audience. Now, in fairness, some of these precursors for cool existed pre-Cybertruck. Tesla bought itself a license to speak to this group when it offered line-up wide features such as fart sounds (not kidding) on demand and Steam’s game library on its screens. However, Cybertruck has elevated this relevance enabling deeper penetration into this niche, by among others (1) a body design that mesmerizes them and (2) product placements that entertain them(e.g. Grand Theft Auto and Rocket League). By appealing to this younger group the way Tesla has, Tesla is recognizing what the AutoTrader UK did back in 2015: that a younger demographic, even as young as 5 or 6, is remarkably astute in their feedback on vehicle design, colour and technology. So much so in fact that, 50-75% of parents are influenced by their children in the car-buying decision. Not to mention that Tesla’s offering of the Cybertruck toy truck and a suite other available toys makes it easy for this group to experience the brand early. And in doing so, Tesla gives itself a place in their minds and (more importantly), their hearts, to justify (1) more immediately influencing their parents towards Cybertruck or other Tesla nameplates and (2) become loyal advocates for the brand long-term (it’s never too early to build brand love).

All this said, the story isn’t all peaches and cream. There are product concerns: (1) Does the stainless steel exoskeleton’s mass, stiffness and sharp edges come at the expense of limited crumple zones and disproportionate danger to other drivers/pedestrians? (2) Does the unique windshield and dash combination compromise visibility? (3) Can Tesla consistently achieve the production precision needed to sustain Musk’s vision of the straight-edge and flat panel design?

And what about the investors whose patience has already been tested with a two-year delivery delay? This test will continue near-term as Musk himself admitted that Tesla’s ability to achieve mass production and profitability will be an ‘enormous challenge‘.

But, given the above discussion, Christmas came for Tesla in late November 2023 when it delivered its first Cybertruck. And if Tesla can capitalize on the blessings of innovation, exterior body design distinction and access to new niches that it provides, Cybertruck may well be the gift that keeps on giving.