Hey everyone Me: Kevin Here the Cybertruck has officially been revealed in this video where we are going to go through not only the release details of the Cybertruck, but we are going to go through the price target for TSLA and we'll do that for both the short and the long term, especially Post Cybertruck. Release The big question a lot of folks have is does the Cyber truck actually change anything in terms of the potential stock price for Tesla? We'll address that. But first, let's get into what Tesla and Elon just announced the Cyber Tru We already knew that was coming, but did you know that Tesla's cars are labeled and in order now on their website As sexy? Look at that. You have the model S 3, X, and Y.

The three is obviously used because Ford has the model E or mock E version and the trademark on that. A lot of people speculate that we might actually end up getting sexy Cars from Tesla. As you can see, we just released the uh C of that Uh, some argue that the Cyber Quad and maybe in the future a real version of an ATV could come out. Maybe eventually we'll actually get the Roadster uh, along with of course the semit TRU which the semi-truck has already started deliveries.

So technically all we're missing here is that ATV and the Roadster and the whole product lineup of Sexy Cars is in, which would be pretty cool. Now here's the pricing. The pricing is estimated for the top-of-the-line model to be $99,000 which is a bit to chew off, but what do you get for $999,000 Well, you get delivery in 2024. hopefully 320 mile range, 2.6 second, 0 to 60 with 845 horsepower.

Now we're going to compare that to the Ford Raptor in just a moment, so buckle up for that. One thing that is fascinating that a lot of people are talking about is actually right Here It is this 440 mile potential range you could have with an optional range extender. Now you'll notice that's about 1/3 more than the range of the existing battery. What's weird about that is that existing battery that's going to bring this to somewhere around 320 Mi probably weighs just to keep math simple, at least 1,000 lb.

Usually the 70 KW lithium iron phosphate battery from Tesla weighs 1,000 lb. So let's go with 1,000 To make this simple, if you're going to get an extra 25% of range, whether you charge it at the front end or at the back end. obviously be faster if you do at the front, but it's the same power set, you're still looking at about 1/4 of more battery. But if it's 1,000 lb, that means you're going to have to lift 250 lb into the bed of this truck.

which isn't unreasonable. We could do it something with maybe two or four handles so a couple people can do it or a strong guy can do it. That's great. Maybe even a strong woman can do it I Don't know, but the point is it seems like it would be a little cumbersome to take a 250lb object in and out.

So I wonder how easy they're going to make it to be able to take it out and put it back in? Some people are speculating that you just throw it into the bed basically? Well, it would click into the bed and there would be some kind of port for you to plug it into. And that's how you would get this range extension. Now, aside from the practicality of how to get this battery in and out because I expect it to be heavy, it is kind of nice that for that 99% of the time, you're not actually needing all of that extra range, you could just remove the unit. I Do suspect that range extender unit will be very useful as well for the tow capability of this vehicle.

Given that even though it can tow, we suspect that electric vehicles are going to be burning a little little bit more electricity in tow mode given that you're towing substantially more weight. I Wouldn't be surprised to see the towing capability of the car being closer to about 200 miles, which honestly still pretty good if you're taking a boat or wave runners or otherwise. As you can see, they rate this as being able to tow 11,000 lb. Seating Five Got rid of that bench seat in the front.

the electric uh monitor display monitor in the center didn't really cooperate with airbags and we got 20in wheels on this one. Uh, this is the most expensive top-of-the line unit which you could pre-order Now for $250 you've got the $79,000 vehicle right here. What you're doing is you're actually getting slightly more range in the all all-wheel drive version here, but you're not getting the power you're going from Two and a halfish with roll out subtracted, so that's probably more like which is the same thing the model X Plaid has. roughly this is 2.6 the model X sorry is 2.5 both of them with roll out subtracted.

Also, the model S Pla at 1.9 is roll out subtracted so probably add about .2 seconds there. Uh, that means the cybertruck the most expensive versions probably putting you at about 2.8 is for a 0 to 60, whereas this version is 4.1 seconds which is about $20,000 less. So just to corroborate there, that's 2.6 on the cybertruck with the little as risk for with roll out subtracted and then over here at 4.1 we do not have the little as risk for roll out subtracted. Do keep in mind this version gets almost 500 mil of range with the range extender.

Very impressive 340 mile range. otherwise. Uh, you can also notice it is more than 6,000 which is great for those business owners looking for some accelerate accelerated depreciation. Uh, same thing for pretty much all the vergence here.

Uh, and the way that accelerated depreciation works, by the way, is really when you have a vehicle that's over 6,000 pounds if it can carry passengers, and of course, check with your CPA about? this isn't tax advice for you and these rules change all the time. they phase out and they bring them back. It's crazy So it changes all the time. But uh, the 179 deduction was that if a vehicle is more than 6,000 pounds used for business, you could accelerate depreciation on this.

If it's like a sprinter van with just cargo behind you, you could literally write off 100% of the car, but if it has the capability of seating passengers behind you, you're usually limited to a bone bonus depreciation of an extra $25,000 up front and then straight line on the rest. Which isn't bad because I mean if you think about it if you buy a $100,000 car, Uh, and then you depreciate the rest of the car over Just to make math easy. s and a half years you're depreciating 10K per year plus 25k up front. Which means your first year deduction would be about 35k on it.

That's not bad and that's some really quick math. Obviously, talk to your CPA about that, but that's how the 179 deduction would work in case you're wondering about them. As far as the lowest entry price you're looking at about $60,900 About $11,000 more than I had guessed for this type of vehicle. The entry level vehicle.

this is your 250 mile range vehicle. 6 and 1 12 seconds, 0 to 60. This is the rear wheeel drive model. We actually don't even have the weight spec on this one.

probably because they're not even focusing on manufacturing this vehicle. Uh, at this point. Uh, so this one will be a while. Which makes sense because as as a company gets to scale in vehicle production.

uh, remember, you have sort of this slope of scale in E economics. Uh, where the cost is extremely expensive to make your first car, it's less expensive to make your 100th car. It's less expensive to make your thousandth car than between A, and maybe 500,000 It's roughly the same cost, but then you have to get a new facility and it starts getting expensive again. That's just an example of economies of scale.

Super Super big. Basic explanation here. A point is though it would make sense that if you're going to have a lot of costs upfront to start by delivering the most expensive vehicle, especially since then it'll be exclusive and the people who are paying $100,000 will get the eyeballs of having this car. I Think one of the big benefits of this car is going to be marketing.

I Think this is going to be a marketing tool for electricians, real estate agents. Plumbers Local Business owners sign companies, rap companies. People are going to do some pretty cool things with this because it is a head turner. A lot of people think this car is ugly.

A lot of people absolutely love it. Doesn't matter though, everybody's looking at it. Tesla's also expecting to introduce some accessories although they regularly say they'll do these accessories and they kind of back burner those so I wouldn't hold my breath for like a light bar that you could install on top that's extra. This camper tent that you can use extra obviously.

Uh. One thing that does concern me about the camper is I don't actually think you can open that back window. Which means you're probably not going to be sleeping in that bed of the truck with the tent using the heating of the inside of your car because I I I don't think there's a way to connect the two I could be wrong. if this window opens, it' be great because then you could seal up your tent, turn on the heater inside the car, and heat up your tent as well.

Not convinced that will actually be functional and as you can see, it's a five-seater here. Uh now uh, this this sort of spare wheel thing. This is very Tesla where they don't actually include spare tires or Wheels like emergency wheels and so uh, they're like hey, well you could just use your bed if you really want to. The bed is 6x4 which does not fit a sheet of dry wall.

Uh, you can put The bed down, but if you put the bed down, you're obviously going to have to tie your load down to make sure it doesn't all go slipping off the back. So it I mean this is pretty standard standard to see a 6x4 bed, so it's not a surprise. A lot of people obviously were hoping for a full 6 by or 4x8 so that way they could put a full sheet of drywall or plywood in it. Yeah, then the next thing we've got I mean this is pretty generic.

This is relatively similar to what you get in the other vehicles. The video um, screens in the front and back. Great audio throughout the car. The audio is generally very good and you don't hear a lot of the car noise anyway since it is an electric vehicle now.

One thing that is neat is you've got a 240 volt plug here and two standard 120 volt plugs. This is something that Ford's already been doing with their pickup trucks and it's really just to demonstrate the idea that you can, you know, use your power tools of the back of your truck when you're at the job side and let's say there's no power now. We had to touch on this a little bit, so for home backup, it's worth noting that an 11.5 Kow battery in your cyber Tru is not actually going to be functional unless you already have the power wall. The problem is the power wall.

is, like $8,400 at the time of this recording. So if you have the power wall, the power wall and Tesla makes her own inverters. Now they stopped using solar Edge But uh, the power wall will convert this energy from DC battery energy to something your house can actually use. So if you don't have a power wall which often times requires getting a new panel at your house, you're probably going to have to get some additions here, including not only the wall connector that's okay, but you also need the Tesla Gateway and then potentially some form of backup switch.

Uh, the backup switch. probably not being the expensive part I'm guessing the Gateway being the more expensive, but we don't have a specific price on just that. Standalone Yet that equipment, as it says here, will be sold separately. so TBD on that.

but I wouldn't expect to just plug your car into your house. and yeah, I got a backup battery not so fast. that'll work if you have the power wall. which will actually be kind of cool because it's almost like having another Power wall.

So I do think that's pretty awesome and it's kind of brilliant as a Tesla investor because I think wow, that is going to motivate people to buy the power wall and the power wall. You know there are high margins on these people misunderstand that Tesla is also an energy company and the amount of money you can make on power walls is phenomenal. Uh, so this picture though little bit misleading because it kind of just shows. Oh look, you can power your home and it just shows a lady walking up to the power.

uh, the wall connector unit. but it doesn't actually show a power wall at this property. which yeah, apparently this is some rigged house. Uh, but I mean it looks cool.

It's like cybery and apocalyptic, which is what Elon's going for here. Uh, but you would need the power wall or that gateway to actually make this function. However, you could charge other vehicles with it, which is kind of cool because especially if you get the extended Range model, you're going to be that friend. Everybody calls when they run out of electricity in their cars, although frankly, I I don't know how often that really happens now with how common the supercharging network is, but it can happen if you want to extend the range in your Tesla I Highly recommend you turn off Sentry mode.

That thing is a battery. suck. It will drain the snot out of your battery. It's just not worth having on.

uh, like I'll I'll have it parked somewhere at you know, 80 mil. it go down to 40 overnight with Sentry on I turn off Sentry It's down to like 78 so it's not that important for me. I Got insurance for a reason Tesla insurance for that matter? Uh, Anyway, here's the Uh to compare the Ford F-150 Raptor This vehicle has a a 0 to 60 of 3.6 seconds. As you can see right here, uh to to actually get these 702 horsepowers, you have to buy the extended Uh V8 engine.

That's going to start being very expensive. In fact, if you go to the Ford website and you add The Supercharged V8 it's going to cost you $31,000 No, that's not for the car. That is a feature that you can add to your car that takes you from the V6 to a V8 Yes, and then your total cost of this Ford Raptor is actually basically $110,000 About $110,000 more than the Cyber Tru Uh, so keep in mind this has 705 horsepowers, the Uh horsepower the most expensive Tesla sitting at 845 for 10,000 less and a quicker 0 to 60. In fact, they did a great job showing a Uh race between a off-the-shelf sort of Porsche 911, 3.9 second, 0 to 60 and uh, take a look at this clip and notice if you see what they did with the Cyber truck because it doesn't seem that much faster at the finish line.

but watch what is behind that's and Tesla stock. The most important thing thing for this company is this right here. we've got to get inflation prices down, or the prices of things starting to flatten and ideally even Trend down into the scope of maybe even deflation. That would be fantastic for Tesla Because not only would it mean rates could come down which would bring down financing costs for the vehicles, but it might actually bring back some of that delicious margin that Tesla used to have in a low interest rate environment.

So the fact that we are seeing a year-over-year change of Pce personal consumption expenditures, inflation coming down, and the fact that if we take the last 6 months, we can actually see that decline has been greater See how that blue line is lower than that orange line right there? That's basically saying what's the inflation we've seen over the last 6 months? And let's look at that over a year as opposed to looking strictly over a year So you can see there's been more in disinflation over the last three. uh, six months that is. And if you look at over the last 3 months, you're roughly aligned with the last six months the you had a little bit of volatility there. So here's some of the thoughts that I have for what the Cybertruck could mean at 60,000 deliveries at $100,000 a piece, I'm suspecting about a 15% margin at the end of 60,000 units produced.

We're only looking at about a 6% boost to the value of earnings per share and potentially therefore the stock. So not really a big impact. You don't really start seeing a big impact from the Cybertruck until this gets to much more scale, which would be about 2026 if we can get to 500,000 cyber trucks in 2026, which Elon's goal was 250 by 2025. maybe the uh end of 2025? 250,000 if we can actually ramp that to about 500k.

So I'm going more conservative 26 but then pricing in some more optimism. or or for 25 I'm more conservative pricing in more optimism for 26, that's where I think we could actually see the Cyber truck contribute about $2.50 to earnings per share for this company on an annual basis, which would boost EPS by about 32% So some real potential upside: if this vehicle doesn't flop and that's where we have some short-term risks I Suspect short-term you're going to get a lot of videos of people hating on the cybertruck you're going to have I think a very hard Q4 where people are incentivized not to buy a Tesla until January 1 because of the $7,500 tax credit being available immediately rather than at your tax return so you're better off getting the card Jan one Rates are just maybe starting to Trend down a little bit, but there's still so much economic uncertainty we can't be 100% about that. And in addition to that any of this first set of manufacturing scale, difficulty or drama associated with some of the first deliveries of the Cyber truck. that's all going to hit the news within the next 3 to 6 months, so probably you still have a little bit of an anchor on the stock for the next three to six months.

However, it's entirely possible that once it is totally clear to say let's go buy this stock, it's entirely possible that by then the stock is substantially more expensive as other people have already started pricing this in ahead. So uh, that's somewhat my take short-term Again, bearish. But I don't want to sell my position in it because I worry that if I sell my position in it just to try to avoid pain over the next 3 to six months, then if I don't have a chance to buy in again because all of a sudden the company beats on deliveries, one quarter or whatever or some research report comes out and the stock is up 10% or 30% in a matter of days. it's happened before Tesla usually has these Cycles we like to call them the 21 Day Tesla rally cycle and usually when those rallies start, everybody's like, okay, well I'll just wait for it to come back down and then it just does this and and and then it.

you know, kind of Peters from there. but it doesn't go all the way back down here. So that's historically and anecdotally what I've seen Tesla do. So sometimes when it moves, it moves rapidly, but otherwise, yeah, buckle up.

Uh, for the short term for the long term was pretty exciting. So if you like this, check out the Meetkevin.com website for those courses on building your wealth. The gold course price goes up tomorrow. Make sure to subscribe here and the Meet Kevin Live Stream the three most important channels to subscribe to.

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And then of course, make sure to subscribe to the Meet Kevin podcast. Next podcast episode will be Monday When Mikey is back Mikey is presently at Giga Texas going to check out that cyber truck. Thanks so much for watching and we'll see you in the next! One disclaimer Time: Even though I'm a licensed financial advisor, licensed real estate broker, and becoming a stock broker, this video is neither personalized Financial nor real estate advice for you. It is not tax, legal, or otherwise personalized advice tailored to you.

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