Tesla Stock Is Closer Than Ever to Its ‘Mega’ Semi Truck Catalyst

The first week of 2022 is finally over. Tesla (NASDAQ:TSLA) CEO Elon Musk is probably glad. Despite a strong start to the year after reporting impressive fourth-quarter delivery statistics, the electric vehicle innovator has seen shares begin to fall 3% over the last 5 days. Investors have plenty of questions as the year ramps up. Thankfully, today brought some news that points toward a better future for Tesla stock as the company gears up for an exciting new development.

Tesla (TSLA) logo on city building at night

Source: Vitaliy Karimov / Shutterstock.com

What’s Happening With Tesla Stock

Tesla fans have been waiting for more details around the launch of its Semi truck, a compact truck powered by four motors. The model’s section of the company website offers consumers the option to reserve a Tesla Semi. Excited fans hope that the launch date may be close. And according to a recent report from InsideEVs, the company has begun installing the type of megacharger required to power such a vehicle.

This type of development is exactly what investors have been hoping for. Today saw Tesla stock fall throughout the afternoon, closing down 3.5%.

Why It Matters

There’s no question that Tesla is facing increasing competition from its rivals. This doesn’t just mean companies built to produce EVs — we’re also seeing pushes from legacy automakers such as Ford (NYSE:F) and Toyota (NYSE:TM) who are investing millions in EV production to compete with Tesla. While the four-door sedan section of the EV market is quickly becoming crowded, there has been less progress when it comes to trucks. Tesla seems to be further along on that front that its rivals. But the company has already pushed back the launch date once.

Now, it seems the megacharger installations suggest the launch is near.

If indeed it is, Tesla stock is likely to gain the type of momentum it needs to get back on top. Analysts predict that the EV sector is facing a year of slower growth than it saw in 2021, prompting companies to take action to ensure that they maintain their leadership. For Tesla to roll out a fleet of Semi trucks would help shine a positive light on the company, something it needs after the recent controversy over its construction of a showroom in China’s Xinjiang region.

What It Means

We won’t be able to get too excited until we see more concrete details from Tesla regarding the launch of its Semi. That said, just the momentum from a development like this could be enough to help drive Tesla stock up a bit, helping restore investor confidence in the short term.

Speculation alone is not enough to drive long-term growth for a stock like TSLA, but that doesn’t mean that investors shouldn’t be watching closely. Once these trucks are on the road, the EV race will have reached another key milestone.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/01/tesla-stock-is-closer-than-ever-to-its-mega-semi-truck-catalyst/.

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