Reuters/Noah Berger
- Tesla announced that it will reveal a big-rig semi-truck trailer in Los Angeles next week.
- The new vehicle could help place it ahead of its competitors, RBC Capital Markets said.
- View Tesla's stock price movements in real time here.
Tesla's planned unveiling of its new line of semi-trucks may be an easy way for it to leverage its existing technology and capital and give it an edge over the competition, Joseph Spak, an analyst at RBC Capital Markets, said.
The commercial vehicle (CV) could give Tesla the "biggest bang for their buck" because the company need only tap into their Model 3 sedan's prototype, and recreate that for a bigger vehicle, Spak said, in order to deliver lower costs and higher reliability for the commercial truck driver. This also helps the company get closer to its mission of reducing emissions.
"For CVs, the decision tends to be purely economic," in terms of cost of ownership and utilization, Spak wrote in a note.
Electronic trucks could cost less in terms of maintenance, as well as cost savings in fuel, he said. The biggest things to look out for at Tesla's November 16 event are the semi-truck's range, costs, weight and towing capacity, and its autonomous capabilities, Spak notes. He also said that its target for delivering the vehicles, as well as the associated costs, could play a large part in the truck's reception.
This is welcome news for the company after the first half of the year has been marred by production delays of its Model 3 sedan, which has sent its shares on a roller coaster ride.
"While we don't have meaningful reason to doubt that Tesla can eventually achieve its targets, doing so in a timely manner without some growing pains could prove challenging," Spak said.
He added that while the company's long-term prospects may not be impacted, the company's failure to hit its near-term targets could "hold back the stock" or offer a "more favorable risk/reward entry point."
Shares of Tesla are up 46.92% this year.
