Tesla Inc (NASDAQ:TSLA) is almost ready to hit the road with the first Tesla semi truck.
Elon Musk, CEO of Tesla, says that a prototype version of the semi truck will be ready next month. This will allow the company to show off the vehicle to potential buyers. However, there are a few hurdles that the Tesla semi truck will have to overcome.
The biggest concerns for a Tesla semi truck are range and price. Reports claim that TSLA’s semi truck will have a range between 200 miles and 300 miles with a full load. This will put it on the low end of the “long-haul” category and will likely limit it to regional deliveries.
When it comes to cost, the Tesla semi truck is most likely going to carry a steep entry price. Estimates claim that just the battery will cost the same as a normal semi truck. However, hauling companies claim that they’ll save more on fuel and repairs, as well as avoiding stricter regulations, by switching to electric trucks, reports Reuters.
Musk is hoping for large-scale production of the Tesla semi trucks in the next couple of years. The current range of the vehicle accounts for about 30% of all deliveries, but normal semi trucks can go roughly 1,000 miles before refueling. To match this, the battery on the electric semi truck would take up most of the cargo space. Musk will have to overcome this issue if he wants his trucks to reach a broader market.
While Musk is dealing with how to overcome the restraints of the Tesla semi truck, rival General Motors Company (NYSE:GM) is having its own electric issues. This includes problems with early production Chevy Bolts. The issue has to do with faulty cells in the electric vehicles’ batteries.
TSLA stock was down slightly as of Friday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
