A Lot of Work Ahead for Tesla
Tesla is masterful at unveiling exciting products with top specifications, but the company has yet to actually make them perfectly in large volume.
After incorporating the semi truck and surprise second-generation roadster that
We found both the truck and the roadster very impressive and better than any equivalent electric vehicle available today. The truck starts production in 2019 and the roadster in 2020. CEO Elon Musk says the truck will have 500 miles of range at highway speeds with all-in weight of 80,000 pounds, though it’s not clear how much of that weight is payload versus the truck itself. The Mercedes-Benz Urban eTruck has range up to 124 miles and is due in 2020, and Daimler Trucks’ Mitsubishi Fuso group announced a 217-mile model in October called the Vision One that could be feasible by 2021. Tesla guarantees its semi will not break down for 1 million miles and claims a payback period versus a diesel of two years based on $2.50/gallon for diesel and $0.25 per mile saved versus a diesel truck. We think the Tesla semi will cost nearly $200,000.
Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.