New vehicle releases shine an even brighter spotlight on corporations electrifying and automating the transportation industry. Until recently, news about significant developments in electric trucks was scarce. The electric car concept is mostly applied to everyday sedans and hatchbacks. However, innovative automakers like Cummins and Tesla, Inc. (NASDAQ:TSLA) are switching things up.
The hauling industry is eager for newer, low-emission, and alternative trucks and heavy duty vehicles. Heightening restrictions against high-emission transport sparks greater interest for innovative solutions. There is no definite market yet, says Cummins’ Julie Furber, the electrification business chief. Fleet owners just want to “get a feel for what it’s like,” she explains.
That’s good enough for Cummins, and many others, too. Tesla, Daimler, Toyota, and a whole bunch of automakers are vying for stakes in emerging electric and self-driviang truck markets. Regulators and union organizations are effectively paving the way for their entry as well. News about the American Trucking Association’s Senate appeal with Navistar can be found here.
Learnbonds considers the vast backing that will make breaking into the haulage industry easy for Cummins and Tesla, Inc. Skeptics fret about the added weight of a large battery powering a Class 8 truck. Weight restrictions on haulage add to the argument against electric trucks and their mass adoption. But is it as improbable as many people assume?
Are Tesla, Inc. and Cummins aiming at thin air?
Alexander Potter does not think so. His daily occupation entails analytic work at Piper Jaffray & Co. According to his finding, the jump to electric trucks can easier than anticipated.
The issue is people overestimating of the effect weight restrictions will impose. Potter claims there is a lot of legroom for heavier trucks powered by electric battery packs. Over 84 percent of Class 8 Trucks in America operate beneath 80,000 pounds, which is the legal cap. This suggests an overwhelming majority of fleet owners will be insensitive to the weight gain.
The real issue is how far the new trucks can go. Potter insists that potential buyers will see their range capabilities as a deal breaker. Although, Tesla, Inc. (NASDAQ:TSLA) is perhaps the most immune to range concerns. The energy tech corporation already has a widespread network of Supercharger facilities in the U.S. It is not unlikely for the company to offer fixed route trucks that are always within range of a charging station.
The weight? The Piper Jaffray analyst says that is small concern. He to a look at the additional weight likely to come with initial electric trucks. An additional 4,000 pounds will probably be the result of an electric powertrain equipped to a Class 8 truck. Potter says that his guess is on the conservative side, too. It is based on the assumption that truck fleet owners are not looking lighten the load of their haulers.
“We have concluded that making the transition to EVs will not be too heavy for most fleet owners to stomach.”
Weight is small fries for Tesla, Inc. And Cummins
Potter goes on, stating most fleets do not bother with weight concerns. This is because they never operate anywhere close to the legal limit. The reports claims the idea that owners fret about weight is a widespread misconception. There are major haulage companies that will of course disagree. However, Potter asserts that they will only make up 2 to 7 percent of the market. That’s the only portion of haulers looking at how much their vehicle weigh.
It is rare today to find fleet owners tying profits to the amount of goods they can carry. In fact, the majority of trucks run out of space long before they reach the 80,000 threshold. Most Class 8 trucks move below 70,000 pounds, which leave a great deal of room to absorb additional weight.
If class 8 and class 7 truck owners tied their revenues so closely to weight, therefore avidly keen on milking the most out of payloads, they would have opted for more lightweight haulers. Eighty percent of Class 8 trucks operate 10,000 pounds or less below the legal limit.
But of course, distance is the deal-breaker
Distance will be the only real deterrent. Tesla will have to at least be able to offer an electric truck that moves close to 700 miles on a single charge. That is range the bulk of Class 8 owners work within, Potter reported. He insist that Tesla, Inc. will derive significant rewards if it aims for the medium to long-range shippers.
Tesla, Inc. (NASDAQ:TSLA) shares spiked well over 5 percent toward the end of the trading week. Details about a semi truck reveal have investors taking in more NASDAQ:TSLA stock. Company shareholders are not the only ones who vouch the idea. This week’s news reports that the American Trucking Association (ATA) teamed up with Navistar. Both parties have an interest in paving the road to self-driving trucks as cleanly as possible.