It is impossible to doubt the influence Tesla Inc. (NASDAQ: TSLA) has had on the EV and tech industry in recent years. Besides pushing the capability of batteries beyond what was believed to be possible as little as 10 years ago, the EV auto maker has initiated a market frenzy to bring out the best, most affordable electric vehicle to the market as soon as possible – a goal which CEO Elon Musk has touted as his primary goal with launching Tesla.
Promises that Tesla’s new semi truck will be able to haul 80,000 pounds for 500 miles on a single charge and be able to recharge to a 400 mile range within 30 minutes have drawn the eye of many in the trucking industry, as this claim would undoubtedly make electric semis a viable alternative to traditional diesel trucks which have dominated the industry for decades. That said, speculation from some analysts that these promises may be too difficult to live up to have begun to arise, given the most powerful current battery charging technology available.
Musk would need to produce a supercharger which is 10 times more powerful than its current charging technology, something which the company asserts will be viable within a few years; holding nothing back from the innovation Tesla has continued to provide the EV market, such a goal remains an aggressive one, and is likely to require significant investment over and above the level many believe the company can handle, given its current production problems with its Model 3 sedans.
The question of how successful Tesla will be in delivering on its promises is something the market will continue to debate for some time – I suggest investors focus their attention on the products at hand, as the Model 3 is likely to drive the company’s stock price in the coming quarters.
Invest wisely, my friends.
