How “Tesla Semi” is Offering savings of more than $200,000?

We frequently hear the automobile manufacturers coming up with sports car that can pick speed from zero-to-60 execution however less regularly for a truck. But on November 16, 2017, Tesla came up with something different!

Key Takeaways:

• Tesla heavy duty all electric truck known as "Tesla Semi", can go up to 500 miles on a single charge and can go 0-60 in just 5 seconds.
• The production of Tesla Semi will start in 2019.
• You can save a total of $200,000 through a two-year payback period, and it costs $5,000 to put a reservation now.
• Walmart is already standing in a queue to get deliveries of Tesla Semi.

                                                                                                                                

In a nutshell:

•           On November 16, 2017, Tesla unveiled a heavy duty all electric truck known as "Tesla Semi", which can go up to 500 miles on a single charge.  The company is offering 300- mile version as well.
•            Tesla Semi will go 0-60 in 5 seconds, 20 seconds with max load weight of 80,000 pounds
•            Semi-Truck has no gear stick. Drivers sit down, put their seatbelt on, and push down on the accelerator and relax.
•           The Tesla Semi don’t just have self-driving feature in it, but they'll also be associated electronically to a fleet management system. Moreover, in the future where driverless vehicles are legitimate out and about - a company of Tesla trucks could travel together with maybe just a single driver in the number one spot truck.

Features of Tesla Semi

•           Safety features include lane autopilot feature, Lane Departure Warning, Automatic Emergency Braking, Automatic Lane Keeping and nuclear explosion-proof glass for the windshield.
•           In the centre of the cab there is the seat for the drivers for maximum control and visibility
•           The Semi offers smooth acceleration and regenerative braking that recovers 98 percent of kinetic energy to the battery.
•          Throughout the truck, the cameras are installed to enhance safety by giving the driver a wide view of surroundings.
•          Talking about the battery, it is powered with a giant battery, this battery can power four independent electric motors. Tesla currently didn’t want to release the battery pack specifications, but a rough capacity of 1,000 kWh if we take Tesla’s <2 kWh per mile of energy consumption times 500 miles of range at highway speed.

The technology has moved from now to next. But, how much “Tesla Semi” is going to cost you?

The definite price of the truck is not made public yet, but it’s obvious that the price of Tesla’s truck could be way higher than the usual diesel models.

But, at the time of the launching the company claims that the Semi will have the most reduced cost of maintenance for vehicle in its class. The Semi will cost, by and large, 20 percent less per mile than a diesel truck from the very beginning, with more savings for operatives with multiple trucks in service and greater savings in the future with more developments.

Moreover, the Semi's landing page claims it will give proprietors fuel and maintain savings of more than $200,000 through a two-year payback period, and it costs $5,000 to put a reservation now.

But How Tesla is claiming for cost saving of $2,00,000?

According to the company’s cost analysis, to get the vehicle to approximate 3,00,000 miles, the consumer on an average will spend a combined maintenance and fuel cost of $2,50,000 which will be saved due to electrification. Electricity is easily available at a less than half price as compare to fuel and due to lesser components in electric vehicles, the maintenance cost comes out to be very less as compared to diesel engines. The cost came to almost savings of around $2,00,000 straight forward.

But who knows the truth even we are waiting for this truck to run on roads and let’s see the actual savings Tesla Semi is providing.

Walmart, the retail giant is very excited about the deliveries of its Tesla Semi. Yes, you heard it right, Walmart has Pre-Order Tesla’s Semi.

Walmart, the retail giant, has pre-ordered 15 Tesla Semis. The company said that it is going to test five trucks in U.S. and another 10 in Canada. The company have a long history of testing new technology & innovation including alternate fuel trucks.

Walmart joined a list of other big businesses that have pre-ordered the electric trucks, which includes Michigan-based grocery chain Meijer, which has pre-ordered four of the vehicles and J.B. Hunt Transport Services, the company is ready to buy an unspecified number.

When you can buy?

The production will start in 2019. But based on Tesla’s deliveries record with Model 3, we can assume the deliveries in early 2020. But till that time Tesla will not only be the manufacturer of electric vehicle, many other players are still waiting in the queue. Only by launching electric truck at first, Tesla can brag the first orders from business giants which can help Tesla to grow and set trends for others.

Will this launch affect the global connected truck market?

This latest innovation in technology by Tesla is pushing big companies to order these types of trucks which will help their business to grow by reducing cost and time of their supply chain. The companies are looking for fleet management systems in their vehicles and truck like Tesla’s Semi is fulfilling all the demands in a long run. According to the recently published report by TechSci Research, “Global Connected Truck Market, By Vehicle Type, By Communication, Competition Forecast & Opportunities, 2012-2022”, the market for connected trucks is expected to grow at a CAGR of over 15% over the next five years. With the growing demand for smart cities or connected vehicles, the demand for V2V communication is also projected to dominate the connected truck market.

The global market for connected car devices, by communication type:

                                                                                                                   Source: Techsci Research                                                                                                       

Are commercial vehicles fully ready to enter the Indian Market also?

As Tesla claims that the truck is all electric which will not use fuels at all for its operation and will emit zero carbon emissions and will be cost less maintenance as compared to diesel vehicle, the government of India is looking for these types of vehicles in India over the next five years. The Government of India launched the National Electric Mobility Mission Plan (NEMMP) 2020 in 2013. It aims to achieve national fuel security by promoting hybrid and electric vehicles in the country. Through this plan, it is expected to save 9500 Million Litres of crude oil.

Growing vehicle emissions and government regulations for electric vehicles in India, the demand of commercial vehicles is going to increase. Moreover, state governments in India are focusing on environment-friendly electric vehicles and are developing new industrial policies which will further boost the demand of electric vehicles across the country during the forecast period. According to the recently published report by TechSci Research, “India Electric Vehicle Market, By Vehicle Type, By Drivetrain Technology, By Charging Infrastructure Trends, Competition Forecast & Opportunities, 2012-2022”, the market for electric vehicles in India is expected to grow at a CAGR of over 100% over the next five years.

Conclusion: Elon Musk is certainly garnering some pre-bookings for these trucks. Yet we can question that whether these bookings will last and move toward becoming requests once Tesla starts distributions? Let’s wait for it…

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