Tesla's Cybercab has a massive cost advantage due to component removal, enabling it to dominate the robotaxi market and eliminate competition.

Tesla held its "CyberTruck Lollapalooza" event in Austin, Texas. you know that the Cybertruck is Elon's two-seater electric car, with upward-opening doors, no steering wheel, no pedals, and designed to operate entirely with Tesla's self-driving software.

This, this is a vehicle designed from scratch for complete autonomy.

But in reality, the number of components they removed from the car significantly reduces the cost . Therefore, there is no driver, and a huge amount of the costs associated with the car have disappeared.

Therefore, there is no way for anyone to match the price of this car that.

No one will be able to match Tesla's cost for the actual hardware itself. This comment made no mention whatsoever of the modular manufacturing system , which in itself would result in a massive reduction , perhaps the bulk of the vehicle's cost.

But only the things that you don't actually need to have in the product: the steering wheel, pedals, and steering and braking connections. There are no side mirrors, and there are many cost savings simply from not having to meet the driver's needs.

All roads lead to a massive hardware cost advantage that no company attempting to compete with Tesla in the robotics field will be able to come close to, let alone match or surpass .

So far, the Moonshots podcast has provided an excellent analysis of Tesla's Cyber Cab. I've been saying that no one will be able to match the cost of a Tesla Cybercab.

By eliminating the components in the car, there is no way for anyone to match the price point of this vehicle. This is the key point compared to companies like Zoox, Waymo, or any other competitor.

I mean, Elon wants to sell them for 30,000 each so you can buy them, and I think it's a great entrepreneurial venture to buy 10 of them and put them on the streets of your city to generate income.

So, one of the first passengers in Austin, and I quote this here, reported that CyberCab is about 50% cheaper than Uber for similar trips, with the trips described as smoother and cleaner with automatic audio sync and seat settings in the passenger profile.

It is truly extraordinary, and remember that Nevada granted Tesla permission to operate 5,000 of these vehicles on the roads in Las Vegas for the next twelve months .

I mean, it will completely eliminate the competition. Do you think this is Tesla's "Chat GPT" moment? I think so, and going back to our first guest point, no one will be able to compete on the basis of cost.

Now, Peter, the podcast host, says Tesla will drive everyone out of the market , after just showing a price comparison between CyberCab and Uber cars. On both points, and to my surprise, I completely agree.

Sorry, Jason. I'm eager to hear your opinion on this. Do you think this is Tesla's "Chat GBT" moment?

I think this is possible, and this is a classic "EXO" model , isn't it? Independence, decentralization, the presence of interaction interfaces, and the utilization of available assets.

If Elon manages to get people to buy these vehicles and create millions of small franchises from them, the resulting loyalty will be incredible.

Of course, they will all be equipped with Starlink service. Therefore, a fully vertically integrated work structure strongly imposes itself. I think the most exciting part is that the cost of transportation will drop by another decimal place , from two dollars a mile today to 20 cents a mile.

This was a very clear intelligence test when Tesla first unveiled the Cybertruck. People who wondered: "Why does it only have two seats?" This is not an intelligence test. Asking questions is never a sign of a lack of intelligence.

The evidence of a lack of intelligence was in people saying that the design of the two seats was a stupid idea or a bad design.

As we just heard on the podcast here, the average number of passengers in an Uber or taxi is close to one person. Sometimes there are two of them. In the very rare case where you need more than two passengers, which represents perhaps 5% of trips, or 10% at most depending on the location, the first option is to request a "Model 3" or "Model Y" car that operates as an automated taxi instead .

Or, wait for this crazy idea, order my car or three "Cyber Trucks".

The underlying reason behind the two-seater vehicle is not simply a matter of identical binary options. To build a two-seater vehicle that you can operate for the same cost as a four- or five-seater vehicle.

By designing a two-seater vehicle, it is greatly improved in terms of cost and reduced mass, which means lower operating costs. Production costs are lower, which means they can offer the service at a lower price to consumers than would otherwise be the case .

That's why even a stupid person like me was able to predict, before Tesla unveiled its robot taxi , that it would definitely be a two-door, two-seat vehicle. Elon, with his infinite genius, says: Now we only need two.

We have cut the cost of the airbags alone in half with this design. In the rare case where you need three or four people, get two of them. The story is over.

Or again, there will be complementary "Model Y" cars, and perhaps a "Model 3", and maybe even a "Cyber Truck" someday in the fleet as well.

Returning to the most important point, the cost savings here are truly doubled. Cost savings mean lower operating costs, which means lower costs to use the service, and that means no one will be able to compete with Tesla on cost.

Imagine you are Waymo or Uber. Choose your company that started offering self-service and began to expand. You pay another company $50, 60, 70, 80, 90, or $100,000 to build a vehicle, a four- or five-seater vehicle with a steering wheel and pedals, and then you have to add a set of expensive sensors to the vehicle as well.

This means that putting "robotaxi" on the roads will cost you five times or more. In addition, because you carry a larger mass, you have a less efficient propulsion system, and you have much higher operating costs per mile.

As I said at the beginning of this segment, no one will be able to match Tesla's cost, so connect the dots . They are in real trouble. If you're not Tesla, whether it's a human-driven service or an automated taxi, how can you match or even come close to Tesla's cost per mile for using its services?

The answer is that you support your trips and offer them at a loss for every mile. But if every time you offer a trip to a customer, you have to offer a very large discount below your actual cost of providing the service, so that you lose money on every trip , then the more trips you offer, the more you lose.

This does not seem like a viable business to me.

Answer: They conclude that no one will be able to compete on cost. Tesla will displace companies like Uber, Waymo, and taxis. Basically, Waymo and Uber are in real trouble. Tesla will take over, and it will be the end for everyone else.

At least, that's what I heard, as a Tesla-obsessed fan, when listening to the "Moon Shots" podcast . My new 20-year Tesla and SpaceX valuation model is now also available on Patreon for investor-level and above support.