Tesla grabs headlines with semi-truck, but challenges remain (TSLA)

pulse

November 20, 2017 2:56 PM

The vehicle, which will be released in 2019, is designed to run for up to 500 miles on a single charge

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Tesla unveiled its long-awaited electric, semi-autonomous semi-truck designed for long-haul shipments of goods, at an event held at the company’s Hawthorne, California facility.

The vehicle, which will be released in 2019, is designed to run for up to 500 miles on a single charge. In addition, it will be capable of platooning, a tactic where semi-autonomous trucks automatically follow a lead truck driven by a human in a convoy to increase fuel or battery efficiency.

The vehicles are equipped with two touchscreens on either side of the steering wheel, which drivers can use to monitor the trucks while they’re platooning. However, Tesla CEO Elon Musk didn’t specify what the vehicle will cost.

It’s unclear whether the trucks will be affordable for truck operators and logistics providers, but early indications suggest interest will be positive.

While Musk didn’t disclose the truck’s price, it’ll likely be hundreds of thousands of dollars.
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But that hasn’t deterred Walmart and trucking company JB Hunt from placing preorders of the vehicles.
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Additionally, the Tesla semi-truck’s low per-mile operating costs could persuade other companies to purchase it.

However, Tesla’s long history of missing production deadlines raises questions about whether it can produce the vehicles at scale. For example, the company badly missed its production targets for the Model 3 sedan, largely because of an inability to quickly manufacture its electric batteries. That's been particularly problematic for Tesla, as the Model 3 is the lynchpin in the company’s strategy to become a mass-market automaker. And while it has been actively working to resolve these production bottlenecks, notably through its acquisition of automated manufacturing company Perbix, it remains to be seen whether these efforts will be successful. Given that this will be the company’s first attempt at building a semi-truck, it's highly likely that Tesla’s history of missed deadlines could continue with these vehicles.

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