Hi everybody and welcome back to the Elon Musk podcast.
Today we're breaking down Tesla's recent announcement
about equipping the cyber truck with an 800 Volt architecture.
This move is far reaching consequences for the EV industry
as it promises to improve efficiency, reduce charging
times, and tackle various challenges tied to the growing
mass adoption of E VS. Now, Tesla's recent earnings
call was loaded with information and you can check out the full
earnings call if you scroll back a couple episodes and our feed
here. But the showstopper was
certainly the announcement that the forthcoming Cyber Truck will
feature an 800 Volt architecture.
This is a significant revelation for multiple reasons.
It shows Tesla's commitment to advancing these tech solutions
for its whole fleet. Not just the Cyber truck, but
future vehicles as well. Now you might be wondering why
all the fuss over 800 volts? It's just a number, right?
Well, not really. This isn't the first time that
800 Volt architecture has appeared on the auto scene.
Credit goes to Porsche take hand for introducing this feature
back in 2018. However, Tesla's choice to
integrate this into their latest offering sets a precedent,
essentially marking it as a necessary future standard for
EVs. The timing is also crucial given
Tesla's looming challenges with global economic conditions,
making it a calculated yet aggressive move.
And in a nutshell, the 800 Volt system in the Cybertruck aims to
address some of the most pressing concerns in the EV
sector, including charging speed and efficiency.
And this announcement comes against a backdrop of rising
interest rates, which have created an environment that's
less than ideal for financial big ticket items like cars.
And with the Cybertruck's delivery date drawing near, this
800 Volt news adds a fresh layer of intrigue to Tesla's plans.
Now for those who like to geek out on the technical side of
things, 800 Volt architectures are a dream come true.
One of the most obvious benefits is the reduced charging time.
Tesla's V4 Superchargers can output 350 kilowatts and 800
Volt architecture can take full advantage of that.
It means less time spent waiting around at a Supercharger station
watching a show or listening to music or walking around, which
is excellent news for everyone involved in the EV marketplace.
Now another UP site is the weight factor.
Because 800 Volt architectures require less copper wiring, the
vehicle itself becomes a little bit lighter.
This is critical for a monster vehicle like the Cyber Truck
whose VIN Decoder has already revealed 2 weight
classifications, G&H spanning between 8001 to 10,000 pounds.
Lesser weight usually correlates with better performance and
increase range, which is a win win for both the manufacturer
and for us, the consumers. Now, moreover, the 800 Volt
systems are more efficient in transmitting power from the
battery to a vehicle's wheels, which translates to lower energy
losses. And the system enables electric
current to reduce the flow of amperage, minimizing heat
production and thereby enhancing overall efficiency.
And the efficiency factor might not sound like a big deal, but
when you're talking about a vehicle that's as heavy and as
powerful as a cyber truck, every bit of efficiency counts.
And with this technology, Tesla has further armed itself against
one of the most significant barriers to EV adoption.
Range anxiety, faster charging times and increased efficiency
mean drivers are less likely to worry about running out of
battery power and the adoption of 800 Volt architectures.
It could be a decisive move and pushing EV towards mainstream
acceptance, effectively making them more practical for long
distance traveling and daily use in the future.
And despite its steady growth and robust financials, though,
Tesla has not been without its share of challenges.
Companies leadership, including Elon Musk, has been
straightforward about potential economic hardwinds, how high
interest rates can discourage consumers from opting for
finance purchases, adding an extra layer of complexity to
test the sales strategy. However, Tesla's Q3 shareholder
deck emphasized the economic advantages of 800 Volt systems,
particularly for hefty vehicles like the cyber truck.
The technology is expected to bring notable cost savings which
could be a game changer for Tesla in maintaining or even
improving its profit margins, especially with a heavy vehicle
like the cyber truck between 8000 and 10,000 pounds.
This economic factor isn't just about Tesla though, it reflects
a bigger trend in the auto industry.
As EVs increasingly become the focus of both small and also
major automakers, cost effective technologies like 800 Volt
architectures will likely become standards.
Therefore, Tesla adopting this tech isn't just a smart move for
them, it may also be setting an industry standard for future EVs
and heavy duty EV vehicles. Now interestingly, even though
Musk was indicating that the Cybertruck might not be a
significant contributor to Tesla's cash flow for up to 18
months, the 800 Volt system could help expedite the timeline
by potentially offering a superior product that requires
less time and resources in the charging department.
Tesla may find that consumers are willing to pay a premium,
thereby boosting the cybertruck's financial
performance sooner than expected.
Now let's shift gears a little bit if we'd like.
There's no gear than a cyber truck, by the way.
And let's talk about something a little bit different.
A cyber truck was recently spotted on a freeway.
And this is still about the cyber truck, but it's a little
bit different than the financials in the voltage and it
appeared to be full of bullet holes.
Elon Musk confirmed a social media post that it was in fact
he and his engineers who had unleashed a Tommy gun on the
vehicle. No bullets, he claimed, had
penetrated the passenger side compartment.
This this is a a crazy one, but it may be kind of perplexing.
But it's in line with Tesla's unorthodox method of showcasing
vehicle durability. The stunt underscores the cyber
truck's initial claim of being bulletproof to certain extents
and reiterates Tesla's commitment to out-of-the-box
testing and development. It's a bold strategy, but one
that gets people talking. It's a good PR move, and it is
often half the battle in today's saturated media environment to
at least get people talking about your vehicle.
Now, Elon Musk's sensational approach to testing isn't just
for show, it serves A functional purpose too.
By taking a Tommy gun to the cyber truck, Tesla game's real
world data on the vehicle structural integrity.
This information can be crucial for making improvements,
ensuring that the final product that rolls out to consumers is
both safe and robust. In a world full of cautious PR
moves and highly controlled marketing stunts, Tesla's open
air gunfire test stands out from everybody else.
It captures the imagination, fuels debates, and leaves an
indelible impression, which is exactly what disruptive brands
like Tesla aim to do. The bullet ridden Cybertruck
could very well be another symbol of the company's audacity
and the commitment to challenge all of the established norms
from other vehicle makers. And as the Cybertruck inches
closer to its release date, Tesla's future plans for the
vehicle remain under intense scrutiny.
Although initial production volumes are expected to be low
with a ramp up in 2024, Tesla's ambitious approach to
incorporating new technologies like an 800 Volt system suggests
a long term strategy. And beside the 800 Volt
architecture, Tesla has also hinted on other innovations like
energy dense battery cells which could offer even greater range
now. This constant technological push
indicates that while the Tesla Cybertruck is almost out, its
evolution is far from over. Tesla appears keen on iteration
of the product, much like software updates for your
smartphone, and the additional price point of $39,900 initially
has been removed from Tesla's website, sparking other
speculation about potential changes in pricing strategies.
While it's not clear whether the cost will go up or down, what's
evident is that Tesla is keeping its options open.
This flexibility could be crucial for Cyberduck's success,
especially in a volatile economic environment.
All in all, Tesla's recent announcements surrounding the
cyber truck, particularly the 800 Volt architecture, lay the
groundwork for future innovations and set the stage
for what could be a very interesting few years to come
for the auto industry. They also reinforced Tesla's
position as a trendsetter, a role that has been happy to
occupy since its inception. Now, thank you very much for
joining me today on the Elon Musk podcast.
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