Homepage / Technology / Electric trucks could sell faster than cars, but Tesla may be aiming at wrong end of the market
Google and Facebook are watching our every move online. It's time to make them stop Daymond John tells shy airline passenger: You should have talked to me on the plane South Korea says it has no plans to shut down cryptocurrency trading AMD shares surge as Wall Street analysts say the chipmaker is ‘executing on all fronts’ James Altucher, the face of bitcoin, says he’s happy about Facebook’s cryptocurrency ad ban Pending home sales eke out 0.5 percent gain in December as supply shrinks to record low Uber is testing bike sharing in San Francisco The real source of the internet's problems might be the advertising business Game publisher EA's sales forecast tops estimates, sending shares higher GE will likely be dropped from the Dow, Deutsche Bank predicts Samsung surpasses Intel as world's biggest chipmaker for the first time Apple could be the best of the bunch in this tech earnings avalanche The 9-year stock rally still has 'years left,' says one of Wall Street's most bullish strategists Apple: We would never degrade the iPhone experience to get users to buy new phones Bitcoin headed for biggest monthly drop since January 2015 with nearly $60 billion of value wiped off ADP boosts forecast as new tax law spurs demand China 'will open even wider to the UK,' says Prime Minister Li Keqiang Big market swings are something you’re going to have to get used to, says Wells Fargo The dollar keeps weakening. Is that good news for the world? Apple downgraded by BMO, expects iPhone maker to slash revenue forecast this week SoftBank buys majority stake in Japanese messaging giant Line’s mobile division Rising interest rates cause a 2.6% pullback in weekly mortgage applications Trump's State of the Union address 'less hard' than first feared in Asia Trump vows to protect US intellectual property, without naming China Blockchain technology to boost Microsoft earnings, trader says Fujifilm to take over Xerox and combine it into the joint venture Fuji Xerox Samsung is making chips designed to mine cryptocurrencies like bitcoin There’s a risk of market turbulence, but it’s unlikely to hit until 2019, says Santander chairman We'll see up to a 15 percent correction in 2018, Swiss bank CEO says Japan's biggest messaging app Line is planning to launch a cryptocurrency exchange Quicksilver surfwear CEO missing at sea off the coast of France Venezuela says will pre-sell 'petro' cryptocurrency on Feb. 20 Nintendo ups its Switch sales expectations to 15 million units after profits rise 261% European markets seen mixed amid earnings and economic data The UK wants free trade with China. Beijing has its own goals Santander fourth-quarter net profit down 4 percent on US impairments The man who almost became ambassador to South Korea just warned about US plans for North Korea China's Leshi Internet flags $1.8 billion loss for 2017, citing conglomerate cash crunch South Korea says it uncovered about $600 million in cryptocurrency crimes Asia became less democratic in 2017 Al Gore's investment firm backs start-up created by Facebook co-founder Theresa May says she wants a free trade deal with China Chinese manufacturing weaker than expected in January Webpass is leaving Boston in latest sign of Google Fiber’s shrinking ambitions Samsung posts record fourth-quarter profit Asian shares look set for more declines as Wall Street sells off for a second day Don't count insurers out yet after Amazon-Berkshire-JP Morgan move Amazon's health care move could be a big win for consumer health start-ups Red Hat buys CoreOS, a start-up that sold tech developed by Google Here’s what Amazon told employees today about its landmark deal to deliver better health care Top official resigns after false missile alert in Hawaii Crazy odds: These online traders bet on the chaos of Washington and the Trump administration AMD falls despite beating Q4 estimates Facebook ban on bitcoin ads latest in very bad day for cryptocurrencies Indian man dies after being sucked into an MRI machine while carrying an oxygen cylinder Advice for Jeff Bezos, Warren Buffett and Jamie Dimon from a failed effort to control health costs Toys R Us poor holiday sales cast doubts on its future and could force renegotiation of loan terms The Apple sell-off is a buying opportunity into earnings, says trader Google partnership on mobile cloud services drives up MobileIron shares Facebook is banning all ads promoting cryptocurrencies — including bitcoin and ICOs Amazon's moves in health care over the last year are finally starting to make sense Buffett is getting a second chance to partner with Bezos after missing on Amazon as an investment How Pencils of Promise got a $1 million donation from an anonymous bitcoin multi-millionaire Amazon's home devices could be a key to cheaper health care, tech investor Roger McNamee says Two ex-Google engineers built an entirely different kind of self-driving car Cryptocurrencies join the global financial market sell-off as bitcoin drops 7% A travel agent is trying to charge fees for sunbeds Most of the tax cut windfall will boost buybacks and dividends, not workers' pockets, survey predicts The professor who wrote the book on making addictive technology is having second thoughts Trump's immigration policies are 'economic poison' that will cost taxpayers billions Airbnb trolls President Trump ahead of the State of the Union The iPhone X's $1,000 price tag scared everyone away Drop, a rewards app start-up, snags Airbnb's former head of engineering SEC halts one of the largest 'ICOs' ever as it wades deeper into the murky world of cryptocurrency offerings Passing on sanctions, Trump goes even softer on Russia than expected Buy insurers on dip as new initiative from Amazon, Berkshire and JP Morgan is ‘more bark than bite’: Analyst High schools stock up on Narcan to combat teen opioid crisis in US Apple will finally replace the fax machine in health care Apple is reportedly delaying new iOS features until next year because of quality problems Bond expert predicts a ‘wall of buying’ in Treasurys will protect the stock market Home prices surge to new high, up 6.2% in November Noted tech investor says the sector is not the best place to invest right now Sterling predicted to hit pre-Brexit vote level before the end of 2018 Stocks making the biggest moves premarket: AMZN, BRKB, JPM, AAPL, BX, TSLA & more Bitcoin boom to give AMD earnings a boost, says MKM Partners Apple shares fall again on another report of fading iPhone X demand Trump advisor Cohn: President to focus on $1.5 trillion infrastructure plan in State of the Union Why don't foreign investors take fright more often? The dollar is doing something it hasn’t done since 1987 UnitedHealth, CVS plunge on Bezos, Buffett and Dimon plan to improve U.S. health care Amazon, Berkshire and JPMorgan Chase to team in landmark new health care company Can earnings afford to slow down? 'Enemies of the USA': Russia slams America's list of oligarchs with ties to Putin The app that exposed the location of military bases with a heat map is reviewing its features For his next act, former Amex CEO Ken Chenault turns his focus on Silicon Valley Child experts: Just say ‘no’ to Facebook’s kids app Ryanair agrees to recognize British pilots union for first time Arab states are 'determined' to stick with reforms despite deepening 'frustration', IMF says The US 'oligarch list' is strikingly similar to Forbes’ richest Russians ranking Indian ride-hailing firm Ola expands to Australia to take on Uber


Electric trucks could sell faster than cars, but Tesla may be aiming at wrong end of the market

Electric trucks could sell faster than cars, but Tesla may be aiming at wrong end of the heavy duty truck market, says a new report.

Mounting regulatory pressure and future policy changes may push freight carriers to adopt lower emission power trains in their vehicles, said Barclays analyst Michael Cohen in a note sent Monday.

But Tesla’s recently unveiled semitrailer might be aimed at the segment of the market that will likely be the slowest to transition to electric drivetrains. Constraints on price, range, and payload capacity suggest the long-haul market may be the last to embrace electric trucks, after urban freight and other shorter range, lighter duty vehicle markets.

Overall, heavy duty trucks are big polluters. Though they only make up 10 percent of all vehicles on the road and 20 percent of all miles driven, freight trucks emit about 40 percent of all vehicle emissions, Cohen said. This makes the sector difficult to ignore for politicians seeking to reduce emissions.

Indeed, more than 200 cities have some kind of emissions regulation, and major cities such as Madrid, Paris, London and Mexico City have already announced bans on diesel engines, which could rapidly accelerate interest in electrics, Cohen said.

Also, U.S. regulations are set to improve fuel efficiency for tractors by 25 percent through 2027. Starting in 2019, China will begin tightening fuel consumption limits for heavy duty trucks by almost 15 percent. The European Union plans to develop a carbon dioxide standard for heavy duty vehicles in the first half of 2018.

All of these are signs that policy changes may matter more in the adoption of electric vehicles in freight than they will in the widespread adoption of electric cars.

“In our view, greater attention should be paid to developments in the freight sector than to those in the personal vehicle sector, for two reasons: policy could drive the adoption tipping point for freight vehicles more quickly than for personal vehicles, and the total cost of ownership and a faster turnover rate could drive freight truck fleet owners to adopt EVs more quickly than passenger vehicle owners,” Cohen said.

Tesla’s own entry “creates much optimism for EV adoption,” Cohen said, “but displacing oil in long-haul trucking has the most daunting cost and technological challenges of all segments. Due to weight and range constraints, EVs will likely enter the light/medium weight and urban/regional markets first, and the heavy, long-haul sector (including semi trucks) last.”

Some other companies in this area are focusing on these other markets, fitting electric motors and batteries into garbage trucks and city buses, rather than long-haul trucks. Industry veteran and Tesla co-founder Ian Wright told CNBC long-haul trucking is a tougher market for electric than shorter range, light and medium duty trucking.

“I was a little surprised they were targeting long-haul trucks, because that is the worst thing you can do with a battery electric,” Wright said. Wright is now founder and CEO of Wrightspeed, a company that makes very low emission power trains that blend electric motors and batteries with a small, highly efficient diesel generator.

Tesla was not immediately available for comment.

One of the problems with using electric for longer range is that as range climbs, so does the size of the battery. This in turn increases the truck’s weight and lessens the amount of cargo the truck can handle.

Wrightspeed’s own customers tend to operate fleets of lighter, smaller trucks that work more on a local level. For example the company has made powertrains for FedEx, and garbage trucks in at least two counties in northern California.

Tesla did not disclose the total weight of its truck, which is a key piece of information, said Stifel analyst Michael Baudendistel in a note sent Sunday.

“Disclosing the vehicle range without the weight really tells us very little,” Baudendistel said. “We think it is reasonable to believe there may be a 10,000-pound battery pack in the Tesla tractor with a 500-mile range, or a 700 kWh battery pack.”

While removing the diesel engine could go some way to offsetting battery weight, “a battery pack of that size would almost certainly cut into the payload capacity of the truck,” he said.

Source: Tech CNBC
Electric trucks could sell faster than cars, but Tesla may be aiming at wrong end of the market

Comments are closed.