Tesla’s Semi Truck Strategy in North America, 2017–2025

Tesla’s Semi Truck Strategy in North America, 2017–2025

Tesla’s Semi to Act as a Springboard for Battery Electric Technology in Long Haul Trucking, with the Company Estimated to Achieve a Share of 40–54% in the NA HD Electric Truck Market by 2025

RELEASE DATE
24-Jan-2019
REGION
North America
Research Code: K24E-01-00-00-00
SKU: AU01783-NA-MR_22802

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Description

Commercial vehicles, particularly Class 8 heavy duty (HD) trucks, are a major source of greenhouse gas emissions. According to the US Department of Energy, Class 8 trucks transport 80% of all goods in the United States and account for 22% of total energy use in transportation, burning through 28 billion gallons of fuel each year across 2.5 million trucks, each one racking up about a million miles annually. Around the world, these HD trucks account for 7% of greenhouse gas emissions and guzzle 17 million barrels of oil per day, with the demand growing by 1.9% per year, according to the International Energy Agency. Alternate fuel technology, either hybrids or complete electrification, is thus seen as a priority for trucks. Electrification goes a step further in significantly decreasing the total cost of ownership by drastically reducing fuel (energy) costs and cutting down on the maintenance costs associated with a diesel powertrain (as there are minimal moving parts in an electric powertrain).

The trucking industry, unlike the passenger vehicles industry, is slow to adopt innovative ideas and advanced technologies and is averse to change unless mandated by regulation or really appealing for the bottom line of fleets. Tesla is entering the HD electric truck space at a time when traditional OEMs that have been dominating the market are still toying with the idea of prototypes and product launches. Tesla’s Semi truck has always been in the pipeline and part of its Master Plan, Part Deux that also includes light trucks and passenger shuttles, all of which are expected to be zero-emission with autonomous driving capability.

An industry that has its own challenges such as low driver retention, high fuel costs, and a growing cost of ownership seems like a market that could test Tesla to the maximum. Tesla also faces stiff competition from established and experienced truck manufacturers as well as their loyal customers that are resistant to change. Whilst Tesla is convinced that fully battery electric vehicle (BEV) technology is mature enough to propel the Class 8 electric trucks market, other players such as Toyota and Kenworth and start-ups such as Nikola Motor Company are working on Class 8 electric truck prototypes running entirely on fuel cell (FCEV). Amongst traditional OEMs, Daimler, Peterbilt, and Volvo have already showcased electric trucks and are confident to face competition from new players looking to disrupt the market.


Research Highlights

Tesla’s Semi claims to offer the highest driving range, 300–500 miles, amongst battery electric trucks in the market. Other competitive differentiators for the Semi are its acceleration, speed, connectivity, and advanced safety features (most likely be autonomous-ready). If Tesla manages to keep the promise of offering the Semi at an attractive price point of $180,000 without compromising on the payload and performance, the trucking industry will most likely undergo a tectonic shift. However, to achieve this, Tesla will have to manufacture batteries that cost 30–35% less and are more energy-dense than any other battery in the market by 2020. By establishing megacharger corridors with power derived from solar fields, Tesla can not only reduce the charging time for a 500 kWh battery to just half an hour (helping fleets improve their asset productivity), but also reduce energy costs. According to Frost & Sullivan, Tesla is estimated to achieve a market share of 40.2% to 54.1% in the North American heavy duty (HD) electric truck market. After its product launch, Tesla is expected to move towards more service-based offerings such as app-based solutions, digital retailing, leasing to make financing easier, and platooning through targeted acquisitions or partnerships.

This research report includes following segments:

  • North American Heavy Duty Truck Segment
  • Electric Truck Segment

Key Features

  • We provide the longest market segmentation chain in this industry.
  • We provide 10% customization. Our customization will ensure that you necessarily get the market intelligence you are looking for and we get a loyal customer.
  • We conduct detailed market positioning, product positioning, and competitive positioning. Entry strategies, gaps and opportunities are identified for all stakeholders.

Key Issues Addressed

  • How Tesla plans to make a sustainable business case for its electric trucks?
  • The Semi’s feasibility in terms of weight and price?
  • Return on Investment (ROI) offered by the Semi to its customers?
  • Tesla’s growth scenario and its estimated market size and share in the future?
  • Tesla’s prospective plans for the commercial vehicle industry through other segments and services?

Author: Vineeth Purushotham


Table of Contents

Key Findings

Key Success Factors

Competition Benchmarking

Future Market Penetration—Tesla

Tesla’s Semi Truck Strategy—Current and Future Outlook

Research Scope

Research Aims and Objectives

Research Methodology

Definitions

Company Profile

Truck Architecture

Truck Specifications

Key Success Factors

Battery Technology

Sourcing of Battery

Charging Infrastructure

After Sales and Customers

Competitive Landscape

Launch Roadmap

Competition Benchmarking

Weight Feasibility

Price Feasibility

Tesla TCO Comparison—Assumptions

Break-even Point for Tesla Semi

Technology Road Map for Electric Powertrain Systems

North American Electric HD Truck Market—Sales Outlook

Future Market Penetration—Tesla

Attractive Segments

Future Service and Business Model

Maximum Revenue Opportunity

Growth Opportunities—Disruptive Applications and Future Success

Strategic Imperatives for Success and Growth

Key Conclusions and Future Outlook

The Last Word—3 Big Predictions

Legal Disclaimer

Market Engineering Methodology

Abbreviations and Acronyms Used

List of Exhibits

List of Figures
  • 1. Tesla’s Semi Truck Strategy: Competition Benchmarking—Electric HD Trucks, North America, 2017
  • 2. Tesla’s Semi Truck Strategy: Current and Future Outlook, North America, 2017 and 2025
  • 3. Tesla’s Semi Truck Strategy: Companies Analysed in the Study, North America, 2017
  • 4. Tesla’s Semi Truck Strategy: Average Cost and Energy Density of Li-Ion Batteries, North America, 2017
  • 5. Tesla’s Semi Truck Strategy: Launch Road Map—Electric HD Trucks, North America, 2017
  • 6. Tesla’s Semi Truck Strategy: Competition Benchmarking—Electric HD Trucks, North America, 2017
  • 7. Tesla’s Semi Truck Strategy: Weight Feasibility, North America, 2017
  • 8. Tesla’s Semi Truck Strategy: Price Feasibility, North America, 2017
  • 9. Tesla’s Semi Truck Strategy: Tesla TCO, North America, 2017
  • 10. Tesla’s Semi Truck Strategy: Attractive Segments, North America, 2017–2025
  • 11. Tesla’s Semi Truck Strategy: Maximum Revenue Opportunity for Tesla, North America, 2025
List of Charts
  • 1. Tesla’s Semi Truck Strategy: Key Findings, North America, 2017
  • 2. Tesla’s Semi Truck Strategy: Critical Success Factors, North America, 2017
  • 3. Tesla’s Semi Truck Strategy: Tesla Motor Unit Sales Forecast Scenario Analysis in HD Electric Truck Market, North America, 2017–2025
  • 4. Tesla’s Semi Truck Strategy: Company Profile, North America, 2017
  • 5. Tesla’s Semi Truck Strategy: Truck Architecture, North America, 2017
  • 6. Tesla’s Semi Truck Strategy: Truck Specifications, North America, 2017
  • 7. Tesla’s Semi Truck Strategy: Critical Success Factors, North America, 2017
  • 8. Tesla’s Semi Truck Strategy: Battery Sourcing, North America, 2017
  • 9. Tesla’s Semi Truck Strategy: Charging Infrastructure, North America, 2017
  • 10. Tesla’s Semi Truck Strategy: Aftersales and Customers, North America, 2017
  • 11. Tesla’s Semi Truck Strategy: Competitive Landscape—Electric-Hybrid HD Trucks, North America, 2017
  • 12. Tesla’s Semi Truck Strategy: Break-even Point of Battery, North America, 2017–2025
  • 13. Tesla’s Semi Truck Strategy: Electric Truck Technology Road Map, North America, 2015–2030
  • 14. Tesla’s Semi Truck Strategy: HD Truck Sales and Electric Penetration Forecast, North America, 2017–2025
  • 15. Tesla’s Semi Truck Strategy: Tesla Motor Unit Sales Forecast Scenario Analysis in the HD Electric Truck Market, North America, 2017–2025
  • 16. Tesla’s Semi Truck Strategy: Future Service and Business Model, North America, 2017–2025
  • 17. Tesla’s Semi Truck Strategy: Key Conclusions and Future Outlook, North America, 2017–2025
Related Research
Commercial vehicles, particularly Class 8 heavy duty (HD) trucks, are a major source of greenhouse gas emissions. According to the US Department of Energy, Class 8 trucks transport 80% of all goods in the United States and account for 22% of total energy use in transportation, burning through 28 billion gallons of fuel each year across 2.5 million trucks, each one racking up about a million miles annually. Around the world, these HD trucks account for 7% of greenhouse gas emissions and guzzle 17 million barrels of oil per day, with the demand growing by 1.9% per year, according to the International Energy Agency. Alternate fuel technology, either hybrids or complete electrification, is thus seen as a priority for trucks. Electrification goes a step further in significantly decreasing the total cost of ownership by drastically reducing fuel (energy) costs and cutting down on the maintenance costs associated with a diesel powertrain (as there are minimal moving parts in an electric powertrain). The trucking industry, unlike the passenger vehicles industry, is slow to adopt innovative ideas and advanced technologies and is averse to change unless mandated by regulation or really appealing for the bottom line of fleets. Tesla is entering the HD electric truck space at a time when traditional OEMs that have been dominating the market are still toying with the idea of prototypes and product launches. Tesla’s Semi truck has always been in the pipeline and part of its Master Plan, Part Deux that also includes light trucks and passenger shuttles, all of which are expected to be zero-emission with autonomous driving capability. An industry that has its own challenges such as low driver retention, high fuel costs, and a growing cost of ownership seems like a market that could test Tesla to the maximum. Tesla also faces stiff competition from established and experienced truck manufacturers as well as their loyal customers that are resistant to change. Whilst Tesla is convinced that fully battery electric vehicle (BEV) technology is mature enough to propel the Class 8 electric trucks market, other players such as Toyota and Kenworth and start-ups such as Nikola Motor Company are working on Class 8 electric truck prototypes running entirely on fuel cell (FCEV). Amongst traditional OEMs, Daimler, Peterbilt, and Volvo have already showcased electric trucks and are confident to face competition from new players looking to disrupt the market.--BEGIN PROMO--

Research Highlights

Tesla’s Semi claims to offer the highest driving range, 300–500 miles, amongst battery electric trucks in the market. Other competitive differentiators for the Semi are its acceleration, speed, connectivity, and advanced safety features (most likely be autonomous-ready). If Tesla manages to keep the promise of offering the Semi at an attractive price point of $180,000 without compromising on the payload and performance, the trucking industry will most likely undergo a tectonic shift. However, to achieve this, Tesla will have to manufacture batteries that cost 30–35% less and are more energy-dense than any other battery in the market by 2020. By establishing megacharger corridors with power derived from solar fields, Tesla can not only reduce the charging time for a 500 kWh battery to just half an hour (helping fleets improve their asset productivity), but also reduce energy costs. According to Frost & Sullivan, Tesla is estimated to achieve a market share of 40.2% to 54.1% in the North American heavy duty (HD) electric truck market. After its product launch, Tesla is expected to move towards more service-based offerings such as app-based solutions, digital retailing, leasing to make financing easier, and platooning through targeted acquisitions or partnerships.

This research report includes following segments:

  • North American Heavy Duty Truck Segment
  • Electric Truck Segment
More Information
No Index No
Podcast No
Table of Contents | Executive Summary~ || Key Findings~ || Key Success Factors~ || Competition Benchmarking~ || Future Market Penetration—Tesla~ || Tesla’s Semi Truck Strategy—Current and Future Outlook~ | Research Scope, Aim, Objectives, and Methodology~ || Research Scope~ || Research Aims and Objectives~ || Research Methodology~ || Definitions~ | Company Profile~ || Company Profile~ || Truck Architecture~ || Truck Specifications~ | Tesla Success Factors~ || Key Success Factors~ || Battery Technology~ || Sourcing of Battery~ || Charging Infrastructure~ || After Sales and Customers~ | Competition Scenario~ || Competitive Landscape~ || Launch Roadmap~ || Competition Benchmarking~ | Tesla Feasibility~ || Weight Feasibility~ || Price Feasibility~ || Tesla TCO Comparison—Assumptions~ || Break-even Point for Tesla Semi~ | Tesla Market Presence~ || Technology Road Map for Electric Powertrain Systems~ || North American Electric HD Truck Market—Sales Outlook~ || Future Market Penetration—Tesla~ | Way Ahead for Tesla~ || Attractive Segments~ || Future Service and Business Model~ || Maximum Revenue Opportunity~ | Growth Opportunities and Companies to Action~ || Growth Opportunities—Disruptive Applications and Future Success~ || Strategic Imperatives for Success and Growth~ | Key Conclusions and Future Outlook~ || Key Conclusions and Future Outlook~ || The Last Word—3 Big Predictions~ || Legal Disclaimer~ | Appendix~ || Market Engineering Methodology~ || Abbreviations and Acronyms Used~ || List of Exhibits~
List of Charts and Figures 1. Tesla’s Semi Truck Strategy: Competition Benchmarking—Electric HD Trucks, North America, 2017~ 2. Tesla’s Semi Truck Strategy: Current and Future Outlook, North America, 2017 and 2025~ 3. Tesla’s Semi Truck Strategy: Companies Analysed in the Study, North America, 2017~ 4. Tesla’s Semi Truck Strategy: Average Cost and Energy Density of Li-Ion Batteries, North America, 2017~ 5. Tesla’s Semi Truck Strategy: Launch Road Map—Electric HD Trucks, North America, 2017~ 6. Tesla’s Semi Truck Strategy: Competition Benchmarking—Electric HD Trucks, North America, 2017~ 7. Tesla’s Semi Truck Strategy: Weight Feasibility, North America, 2017~ 8. Tesla’s Semi Truck Strategy: Price Feasibility, North America, 2017~ 9. Tesla’s Semi Truck Strategy: Tesla TCO, North America, 2017~ 10. Tesla’s Semi Truck Strategy: Attractive Segments, North America, 2017–2025~ 11. Tesla’s Semi Truck Strategy: Maximum Revenue Opportunity for Tesla, North America, 2025~| 1. Tesla’s Semi Truck Strategy: Key Findings, North America, 2017~ 2. Tesla’s Semi Truck Strategy: Critical Success Factors, North America, 2017~ 3. Tesla’s Semi Truck Strategy: Tesla Motor Unit Sales Forecast Scenario Analysis in HD Electric Truck Market, North America, 2017–2025~ 4. Tesla’s Semi Truck Strategy: Company Profile, North America, 2017~ 5. Tesla’s Semi Truck Strategy: Truck Architecture, North America, 2017~ 6. Tesla’s Semi Truck Strategy: Truck Specifications, North America, 2017~ 7. Tesla’s Semi Truck Strategy: Critical Success Factors, North America, 2017~ 8. Tesla’s Semi Truck Strategy: Battery Sourcing, North America, 2017~ 9. Tesla’s Semi Truck Strategy: Charging Infrastructure, North America, 2017~ 10. Tesla’s Semi Truck Strategy: Aftersales and Customers, North America, 2017~ 11. Tesla’s Semi Truck Strategy: Competitive Landscape—Electric-Hybrid HD Trucks, North America, 2017~ 12. Tesla’s Semi Truck Strategy: Break-even Point of Battery, North America, 2017–2025~ 13. Tesla’s Semi Truck Strategy: Electric Truck Technology Road Map, North America, 2015–2030~ 14. Tesla’s Semi Truck Strategy: HD Truck Sales and Electric Penetration Forecast, North America, 2017–2025~ 15. Tesla’s Semi Truck Strategy: Tesla Motor Unit Sales Forecast Scenario Analysis in the HD Electric Truck Market, North America, 2017–2025~ 16. Tesla’s Semi Truck Strategy: Future Service and Business Model, North America, 2017–2025~ 17. Tesla’s Semi Truck Strategy: Key Conclusions and Future Outlook, North America, 2017–2025~ 18.
Author Marshall Martin
Industries Automotive
WIP Number K24E-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9813-A6,9B01-A6,9963-A6,9882-A6,9AF6-A6