If Tesla is able to secure even a tiny portion of the American trucking industry, the result would rake in billions from new vehicle sales. This is according to several analysts avidly behind the company’s plan to produce semis. Yet the news still has Wall Street polarized over the venture. Putting low-costs and reduced emissions aside, researchers like Seeking Alpha’s John Peterson consider the complexities of the trucking industry.
Elon Musk shared plans to showcase his company’s new heavy weight challenger earlier this month. The chief executive set its unveiling for September 2017. While the revelation manged to inspire many bullish reports, there are those who highly doubt Tesla, Inc.’s capacity to succeed. Petersen argues that battery-powered semi-tractors will not be able to match their gas-powered rivals where it counts. Under the intense, high-speed and long-haul requirements, the Tesla Semi promises to be a poor performer.
Musk recently assured the public that the prototype already functions. He even got to take the semi out for a spin. His report: it “feels like a sports car.”
Yet questions hang over the capabilities of the incoming Tesla Semi. It will surely be “too heavy for the work,” Petersen assures. The analyst is also adamant the battery packs alone will be too costly, massive and weighty.“They can’t work in high-speed, long-haul duty cycles,” he stated while several more experts back his opinion. Opposition is certain that if Tesla is set on making trailer-tractor EVs, the firm is no threat to trucking industry giants just yet.
Is Tesla no threat to industry giants?
Those who have followed Tesla’s rise in the auto industry warn otherwise, though. Bullish reports claims that the incoming Tesla truck will be nothing short of disruptive. Indeed, Musk himself claims the semi will give long-haulers a run for their money. The weekend began with the CEO sharing a teaser shot of the new truck.
The image is made available here and it certainly appears to be as large as any class 8 truck. Although shrouded in darkness, one can safely expect a Tesla-like and moderately futuristic appearance.Most notable is the lack of side-view mirrors, too, suggesting that autonomous driving will be a major part of the vehicle’s appeal.
“The driver and the fuel are the two most important costs of operating a heavy-duty truck,” reports Electrek’s Fred Lambert. “Tesla’s product is expected to eventually eliminate the role of the driver and significantly reduce the cost of fuel with an all-electric powertrain.” By incorporating it’s newly adopted expertise in Solar, Tesla will no doubt be able to add hours of travel power their heavy duty EV.
But the state of modern EV battery technology keeps many people skeptical. Tesla will no doubt try its hand at winning over the small, but growing short-haul trucking market first. This segment promises high returns despite the intensity of its regulations. However, that mean poses “no threat to Paccar, Cummins, or anyone else in the trucking industry,” Petersen states. Not in the near-term, at least.
New market billions from semi truck Tesla
According to Adam Jonas, an analyst at Morgan Stanley, making a powerful bid at winning the trucking industry will pull in billions for Tesla, Inc. This will happen even if the company appeals to just a small portion of the market. Jonas states that perhaps going for trucking makes “even more sense than passenger cars” for Tesla
If the company manages to secure even 10 percent of “the total US trucking market,” it could add around $2.5 billion in yearly revenue, according to Jonas. Tesla would only need to sell around 25,000 annually. “That would be worth as much as selling 70,000 Model 3 cars at base prices.”
There is little official knowledge about the the semi truck Tesla. By all accounts, long-term cost saving appears to be the only advantage it holds over its competition. Yet Tesla, Inc. has turned futurism into success before. Productions like the luxury Model S have single-handedly proven that electric vehicle can not only match their combustion engine rivals, but outdo them in many other aspects, too. Well look forward to the coming months for more details about Tesla’s semi truck.