News
Tesla’s Cybertruck will set the trend for future pickup designs, like it or not
Just over 24 hours following Tesla CEO Elon Musk’s grand unveiling of Tesla’s all-electric, rough-and-tough Cybertruck, a shift in perception has begun and automakers in America’s largest market should lookout. What was widely regarded as a “love it or hate it” type of vehicle with a polarizing design that’s characterized by an unpainted steel Exoskeleton is now seeing its narrative shift towards “I must have this thing”, from “oh no, never.”
It is true that the moment the Tesla Cybertruck entered the stage was a big “WTF” moment for practically everyone in attendance at the unveiling and those watching the event online. But this moment may actually end up playing in Tesla’s favor, as the electric car maker has taken a bold step towards a future where pickup trucks are expected to not look like every other truck in the market. This puts pressure on veteran carmakers such as Ford and even upstarts such as Rivian to eventually come up with vehicles that abandon the traditional pickup truck template.
-
- (Credit: @rrosenbl/Twitter)
-
- Tesla Cybertruck self-presenting door handles (Photo: Teslarati)
-
- Tesla Cybertruck on stage at unveiling event in Los Angeles. Nov. 21, 2019 (Photo: Teslarati)
-
- Tesla Cybertruck futuristic aero wheel makes debut in Los Angeles unveiling event on Nov. 21, 2019 (Photo: Teslarati)
Tesla’s Cybertruck is not for everyone; Musk has made that clear. But considering its aggressive pricing and trademark Tesla performance, the Cybertruck will likely be attractive for enough people that it will end up finding a pretty healthy consumer base, even among those who are traditionally averse to pickup trucks. And this, of course, results in demand for the Cybertruck. After all, it’s pretty silly to assume that a fleet operator or business or police department will shun a tough vehicle that can tow more than the average diesel truck, accelerate like a sports car, and cost very little to “fuel up” just because it looks unconventional.
For these potential customers, the appearance of a vehicle may very well be secondary. What matters is if the truck works, if it will last long, and if its operating costs make business sense. The Cybertruck meets these requirements perfectly, and it does so in a way that is unashamedly electric. As such, detractors of the Cybertruck’s controversial design are best advised to be prepared, since more and more vehicles like it will likely show up on the road in the next few years, or at least within the coming decade.
New designs and concepts, after all, have a tendency to be mocked when they are first introduced. Many may not remember, but the first-generation iPhone was mocked for lacking a physical keyboard. Apple’s Airpods also looked ridiculous when they were first introduced. Even the notches on bezel-less smartphones were criticized mercilessly. Yet today, all these things are the norm. That’s just what happens when something controversial is adopted by enough consumers. Eventually, what was once unsightly or ridiculous becomes accepted.
🖤🖤🖤 Syd Mead 🖤🖤🖤 https://t.co/8nbD5LrAQJ— Elon Musk (@elonmusk) November 23, 2019
Futurists, if any, appear to be embracing the Tesla Cybertuck, at least for its unapologetically sci-fi design. Legendary Blade Runner Art Director Syd Mead, for one, has praised the vehicle, stating that the Cybertruck “has completely changed the vocabulary of the personal truck market design.” The award-winning art director also called the vehicle “stylistically breathtaking,” further stating that it has exceeded his overall expectations. CEO Elon Musk has definitely appreciated these remarks, considering that Tesla did model the Cybertruck after the vehicles in the Blade Runner franchise.
-
One of Syd Mead’s most famous quotes is that science fiction is “reality ahead of schedule.” With regards to his vehicle design and creations, this definitely appears to be the case, with the Cybertruck becoming a real vehicle that’s available for consumers today. Mead’s comments are, if any, validation that Tesla and Elon Musk are really onto something with the Cybertruck’s design. Half the world may just not be seeing it for now. But if consumers react positively to the vehicle, or if it does get adopted by businesses or police departments or even the army for that matter, then there is little doubt that a few more futuristic pickups would likely be released by other automakers as well — definitely sooner rather than later.
After all, why get a traditional, “boring” pickup truck when you can get a sci-fi monster machine that’s cheaper to run for the same price? That just won’t make much sense now, would it?
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
