Word on Wall Street: What Analysts Say about Tesla’s Semi Truck
Tesla’s electric semi truck
In the previous part of this series, we saw how investors might be focused on a Model 3 update during Tesla Motors’ (TSLA) semi truck unveiling event on November 16, 2017. Model 3 is considered critical for Tesla’s future success since it could help the company expand its consumer base. Undoubtedly, it’s very important for Tesla to resolve its production-related issues to ensure timely deliveries and better availability of its Model 3. This is not the first time Tesla has faced production issues. There were production challenges with the Model S and the Model X.
According to many Wall Street analysts, Tesla’s successful entry into the commercial vehicle space with the unveiling of its electric semi truck could reflect the company’s future growth potential. Let’s take a look at what analysts are saying about the truck.
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The biggest catalyst in trucking in decades
According to a report by Electrek, Morgan Stanley analyst Adam Jonas is very positive about Tesla’s electric semi truck. Jonas has called Tesla’s entry into the commercial truck segment “the biggest catalyst in trucking in decades.”
Jonas and Ravi Shanker, another Morgan Stanley analyst, expect Tesla’s semi truck to be available in the market by 2020 and come with a price tag of “$100k if separately leasing batteries.” When Jonas was asked about the truck’s cost-effectiveness, he said the truck “can be up to 70% cheaper to operate than a regular truck.”
These analysts also expect Tesla’s semi truck to “have a range of 200-300 miles” per charge.
Possible impact on the industry
When Tesla announced its plan to unveil its mass-market electric car Model 3, it attracted the attention of several legacy automakers (IYK). General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) decided to speed up the development of their electric cars and make investments in the segment.
Could we see other auto companies gearing up to compete with Tesla’s semi truck? We’ll have to wait and see.
In the next part of this series, we’ll take a look at Tesla’s valuation multiples before it unveils its electric semi truck.