Although shares of
Tesla Motors (
have slumped in recent sessions, investor interest in the stock
remains sky-high. And thanks to the latest comments from Tesla's
CEO Elon Musk, we could see even more demand for TSLA shares by
This is because at a
Business Insider IGNITION event in New York City on
, Musk declared that Tesla was planning on making a truck modeled
ultra-popular F-Series. In order words, Musk and Tesla are looking
at getting into pickup trucks for one of the next rounds of growth
for this impressive company.
The comment came after Elon
was asked a question
regarding whether Tesla would someday make an electric fleet of
vehicles for major delivery companies. Elon rejected this notion,
declaring that the market was too small and that the focus would be
on pickup trucks instead.
The first Tesla Pickup is likely still at least five years away
based on Musk's own admission in the interview. However, this is
truly a huge market and the potential for an electric truck is
After all, many trucks get little in gas mileage so an electric
vehicle could produce plenty of savings from this look. Current
F-150s have a combined MPG of between 13-17, producing an average
fuel cost of between $2,900-$3,800 year, according to
Lithium-ion batteries are still quite expensive though, so it
appears unlikely that Tesla will be able to compete with lower-end
versions of the F-150 for this huge market. Current MSRPs for the '
limited' edition of the F-150
are coming in above $50,000 though, so Tesla might be able to gain
some market share in this segment down the road.
Obviously, it will depend on pricing and if a pickup can attract
the same level of fan interest that we have seen in the car market
for Tesla products. Also, it is important to remember that this may
be quite a ways in the future, and that Tesla might focus on
cheaper cars before pivoting to the pickup truck market later.
While this is pretty much just initial speculation, the preliminary
discussion of a Tesla Pickup could be very exciting for the long
term. Investors and customers have already shown an incredible
level of interest in the company, and it stands to reason that a
pickup truck might be another great market for TSLA to tap into in
the near future.
In terms of an investment right now, TSLA has a Zacks Rank #3
(Hold), while Ford has a top Zacks Rank of 1. Additionally, the
is ranked in the top five percent right now, so this could be an
interesting time to scoop up some automotive shares, or to take
another look at TSLA following this announcement while it is still
well-off from recent highs.
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