Tesla’s truck and the road ahead for goods transport

Yes. Just this week, the maverick entrepreneur and founder of electric vehicle maker Tesla unveiled the Tesla Semi, an all-electric heavy-duty truck, which is, of course, a testing prototype, but could may enter mass-production mode. Tesla Semi, which Musk presented at the Hawthorne Municipal Airport Parking lot near his SpaceX headquarters, claims to sport a remarkable 500-mile (over 800-km) range in one charge and has no transmission, clutch, big engine or any such typical components one generally finds in a conventional truck. And the battery and motor can last up to one million miles. This is a first and epochal, to say the least.

Tesla says the Semi will run for a million miles without a breakdown. Musk has said it’s brake pads will last “forever” and the glass on the truck is “thermonuclear explosion-proof”. Tall claim, yes. But if you if you know the larger-than-life claims of Musk and Co you wouldn’t be surprised. This is someone who’s planning to colonise Mars and make inter-planetary travel a reality and has millions of dollars invested in the idea.

You said it. So now the question auto sector analysts, investors and even technology enthusiasts seem to be asking is: Does the Tesla Semi actually mean the road ahead for goods transport? Is it feasible? If not, how long will it take for such e-trucks to become commercially viable and if they do, how are they going to jell with or negotiate the existing ecosystem of goods transport?

Well, Tesla — which has a market capitalisation of $52.5 billion as we speak — says it has all the answers to our concerns. To start with, the Semi can hit 60 mph three times faster than a regular truck. Experts say the mileage can be around $1.26 a mile. That’s impressive, given that a regular diesel trucks takes $1.51 for the same distance. And a 30-minute charge can add 400 miles to the Tesla Semi. The Semi will enter production stables in 2019.

There you go! Musk didn’t reveal a price tag for the Semi. He says, “Tesla stuff is expensive.” But analysts estimate that an electric truck which can cover some 600 miles in one charge may cost $400,000, owing to the expensive batteries that power them. In comparison, a regular truck of the same metrics takes only $120,000.

True, but only for now. Some experts suggest that if an e-truck has to be economically viable it should run at least 1,000 miles in one charge. And the battery and motor should last double that of the current range of 1 million miles. But that could be a matter of time. And of course, there is the so-called economies of scale. No doubt, electric trucks could make a big difference in cleaning up the transportation sector which is a big contributor to greenhouse gas emissions. In the US itself, about 30 per cent of GHG emissions comes from transport and big trucks account for a significant chunk of it.

They are, already. Tesla’s claims maybe overblown for now, but the idea is a game-changer. And stakeholders are listening. China, has plans to phase out combustion engine-powered vehicles from 2020. Daimler has recently unveiled a few battery-powered prototypes this year. Premium truck maker Paccar is reportedly testing electric and hybrid models. So is Swedish giant Volvo. Which means, e-trucks are not going to stay in the realm of fantasy or prototype. The road ahead for goods transport must be clean and electric. Watch this space.

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