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After Tesla trademarked ‘CYBERBACKPACK,’ the product’s inventor sits at a crossroads

Credit: Riz Nwosu

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Riz Nwosu was inspired when he went to the Tesla Cybertruck unveiling in 2019. After snagging some pictures with the newly-revealed Cybertruck and company CEO Elon Musk, Riz developed a backpack inspired by the futuristic pickup he saw in Hawthorne, California, in late 2019. By December 2021, he had a prototype and a website. Less than six months later, he found Tesla had trademarked the name of his product.

Since December, Riz says he has been developing the “CYBERBACKPACK,” an idea that blossomed from a product unveiling nearly two and a half years ago. “I began designing and building what would become the Cyberbackpack,” Riz said in a blog post he published shortly after reports of Tesla trademarking the name. This all occurred just six months ago, with the first prototypes arriving at his house in March 2022. Later that month, the product would launch on ProductHunt and Spotify, as Riz had received plenty of inquiries from potential customers.

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In March, Riz reached out to Tesla CEO Elon Musk on Twitter and other prominent figures within the company, looking to collaborate on the idea. He felt as if the Cyberbackpack would be something both he and the automaker could benefit from. The Cybertruck, with its mass appeal and loyal following, would likely do well in a “backpack” version, and it would be a dream for Riz, who purchased his first Tesla in March 2016.

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On April 5, Tesla trademarked the “CYBERBACKPACK” name, bringing some speculation that the automaker had approached the fan to purchase or collaborate on his idea. After all, Riz’s website, Cyberbackpack.com, was not active when the initial reports came out earlier this week, which only fueled the speculation that Tesla probably liked the idea and decided to approach him about it. Riz was alarmed, however, as Tesla didn’t contact him about the bag, nor his idea or the name of the product. They had instead trademarked the name of the backpack, which sent Riz into a state of confusion.

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“I decided to temporarily take the site down after receiving a bunch of orders and reaching out to Tesla,” Riz told Teslarati in a statement. “I thought it best to rework the site and get my manufacturer setup properly and then relaunch.”

“Tesla never contacted me.”

Teslarati contacted several patent and trademark law firms, and representatives essentially explained Tesla may have trademarked the name to protect itself from any repercussions that could come from the product’s design. One lawyer explained to us it was a “strategic” and “defensive” strategy that Tesla may use to avoid a situation like Apple did with its AirPods. Apple had so many counterfeit AirPod designs on the market that eventually, it had to do damage control on knockoffs, as some were catching fire or having other dangerous malfunctions. The issue is that Apple could prove that consumers immediately think of “Apple” when they see designs of AirPod knockoffs. This is essentially dangerous to Apple, even though they did not create the AirPod knockoffs, because consumer sentiment relates that design to Apple, and not to a third-party company.

Tesla could technically argue the same thing, legal experts told us. People may see the Cyberbackpack’s design and immediately think Tesla designed it. If negativity were to come from that design in any way, people would likely relate the backpack to Tesla and not to a third-party company, which could damage Tesla’s name.

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Riz ultimately filed his own trademark application several days ago, with a “first use” date of December 2021, when he built the website and came up with the design. A loyal Tesla fan and supporter, Riz just wants to work with the company to help fulfill the idea. “My goal is to work with Tesla on some fashion to distribute the product. That’s why I reached out initially. However if that does not happen, then I would like to continue marketing and selling on my site,” he told us.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla ends Full Self-Driving purchase option in the U.S.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

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Credit: Tesla

Tesla has officially ended the option to purchase the Full Self-Driving suite outright, a move that was announced for the United States market in January by CEO Elon Musk.

The driver assistance suite is now exclusively available in the U.S. as a subscription, which is currently priced at $99 per month.

Tesla moved away from the outright purchase option in an effort to move more people to the subscription program, but there are concerns over its current price and the potential for it to rise.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

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Although Tesla moved back the deadline in other countries, it has now taken effect in the U.S. on Sunday morning. Tesla updated its website to reflect this:

There are still some concerns regarding its price, as $99 per month is not where many consumers are hoping to see the subscription price stay.

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Musk has said that as capabilities improve, the price will go up, but it seems unlikely that 10 million drivers will want to pay an extra $100 every month for the capability, even if it is extremely useful.

Instead, many owners and fans of the company are calling for Tesla to offer a different type of pricing platform. This includes a tiered-system that would let owners pick and choose the features they would want for varying prices, or even a daily, weekly, monthly, and annual pricing option, which would incentivize longer-term purchasing.

Although Musk and other Tesla are aware of FSD’s capabilities and state is is worth much more than its current price, there could be some merit in the idea of offering a price for Supervised FSD and another price for Unsupervised FSD when it becomes available.

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Musk bankers looking to trim xAI debt after SpaceX merger: report

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.

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Credit: SpaceX

Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.

The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.

SpaceX IPO is coming, CEO Elon Musk confirms

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The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.

Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”

That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.

X merged with xAI last March, which brought the valuation to $45 billion, including the debt.

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SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:

“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”

The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.

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Tesla pushes Full Self-Driving outright purchasing option back in one market

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

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Credit: Tesla

Tesla has pushed the opportunity to purchase the Full Self-Driving suite outright in one market: Australia.

The date remains February 14 in North America, but Tesla has pushed the date back to March 31, 2026, in Australia.

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

If you have already purchased the suite outright, you will not be required to subscribe once again, but once the outright purchase option is gone, drivers will be required to pay the monthly fee.

The reason for the adjustment is likely due to the short period of time the Full Self-Driving suite has been available in the country. In North America, it has been available for years.

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Tesla hits major milestone with Full Self-Driving subscriptions

However, Tesla just launched it just last year in Australia.

Full Self-Driving is currently available in seven countries: the United States, Canada, China, Mexico, Australia, New Zealand, and South Korea.

The company has worked extensively for the past few years to launch the suite in Europe. It has not made it quite yet, but Tesla hopes to get it launched by the end of this year.

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In North America, Tesla is only giving customers one more day to buy the suite outright before they will be committed to the subscription-based option for good.

The price is expected to go up as the capabilities improve, but there are no indications as to when Tesla will be doing that, nor what type of offering it plans to roll out for owners.

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