Tesla to Unveil Electric Semi Truck: How’s the Stock Trading?



Tesla’s electric semi truck

Tesla Motors (TSLA), the popular US electric vehicle maker, is set to unveil its electric semi truck on November 16, 2017. The truck is expected to have autonomous capabilities along with other best-in-class features. The unveiling would mark the company’s entry into the commercial vehicle space, which tends to be more profitable for automakers than the small car segment.

More than a year ago, Tesla’s CEO (chief executive officer) Elon Musk revealed in Tesla’s 2016 master plan that the company intended to enter the commercial vehicle segment. Before we explore factors related to the Tesla electric semi truck, let’s take a quick look at how TSLA stock has been trading ahead of the unveiling event.

Tesla stock

Tesla stock began on a positive note in 2017. It posted a fresh all-time high of $389.61 on September 18, 2017. However, the stock lost its glitter in 4Q17, and as of November 10, 2017, it was trading at a loss of 11.2% QTD (quarter-to-date). The performance was worse than the 2.5% QTD rise in the S&P 500 benchmark (SPY) and the 5.5% QTD rise in the NASDAQ 100 (NDX).

Let’s look at the stocks of other US auto companies (IYK). General Motors (GM) and Ford (F) have risen 5.6% and 0.3%, respectively, in 4Q17 so far. In contrast, Italian luxury carmaker Ferrari (RACE) has fallen 0.8% QTD.

In 3Q17, Tesla produced only 260 units of its electric car Model 3, which was much lower than expectations of 1,500 units. Also, the company reported its worst quarterly loss in 3Q17, which added to the negative sentiments.

Series preview

In this series, we’ll see what investors can expect from Tesla’s electric semi truck unveiling event to be held on November 16, 2017. We’ll also see what Wall Street analysts are saying about Tesla’s decision to enter the commercial vehicle segment. Finally, we’ll take a look at analysts’ recommendations for Tesla stock ahead of the semi truck event.

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