Homepage / Technology / Electric trucks could sell faster than cars, but Tesla may be aiming at wrong end of the market
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Technology

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.