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“This poses a threat to Truck OEMs worldwide,” wrote analysts at Morgan Stanley in a note. However, they see Volvo (OTC:VLVLY) as the best protected OEM in this segment.
Volvo began working on electric city buses more than a decade ago. Since then, the company has introduced electric offerings across product segments.
Tesla introduced an electric truck boasting superior efficiency (~1.7 kWh/mi) and an extended range of 500 miles, surpassing the current offerings of traditional OEMs. However, production setbacks and supply chain challenges have restricted its availability to pilot phases for the time being, with major customer PepsiCo (NASDAQ:PEP) and others acquiring a limited number of these trucks.
The price of the Semi is still uncertain, but early estimates suggest it could be around $250k. This is lower than what other companies charge for similar electric models, but it might only apply to the pilot versions.
Skeptics are uncertain whether Tesla will be able to bring a Semi with a 500-mile range and an efficiency of 1.7 kWh/mile or higher to market without significantly sacrificing carrying capacity. Analysts at Morgan Stanley expect Tesla’s edge in battery manufacturing to push them towards their goal.
Furthermore, the Tesla Semi is designed as a Battery Electric Vehicle (BEV) from the ground up, tailored for electrification rather than simply being fitted with an electric powertrain after the fact. A factor that improves efficiency and gives Tesla an advantage when designing their Semi for aerodynamics and electrification.
Shares of TSLA are up 2.59% in early trading on Friday.
