Tesla’s Service Raises Concerns In Wall Street Even As Upcoming Semi Truck Garners Interest

• The firm said that rising oil prices highlights the potential value of electrification and energy diversity.
• Melius Research has a ‘Buy’ rating and $590 price target on Tesla shares.
• Tesla Semi deliveries are slated to commence this year.

Tesla Inc. (TSLA) is reaping heightened attention in light of rising oil and diesel prices, but concerns pertaining to its service and parts distribution abilities persist, according to analysts at Melius Research.

The firm said that rising oil prices highlights the potential value of electrification and energy diversity. However, skepticism remains about the EV giant’s ability to compete in the trucking market without significant investments in post-delivery  service, Melius said, as per TheFly.

In comparison, players like Paccar (PCAR) and Caterpillar (CAT) deploy assets and staff far exceeding the manufacturers' own book value, making uptime a critical differentiator that Tesla currently lacks, the analyst said.

Melius Research has a ‘Buy’ rating and $590 price target on Tesla shares.

Tesla Semi

The Tesla Semi, as the name suggests, is a fully electric semi truck. The company unveiled the vehicle in November 2017 and promised a range of up to 500 miles on a single charge. Vehicle deliveries are now slated to commence this year, expanding Tesla’s lineup and offerings for commercial customers.

As per Tesla’s website, the vehicle will be available in two variants, namely standard range and long range. While standard range will offer about 325 miles of range, the long range variant will offer about 500 miles of range. Last month, Electrek reported that the company is quoting $290,000 for the 500-mile version of its Tesla Semi truck, before destination fees and taxes, higher than the price announced at the time of its unveiling, but below the industry average for a class 8 electric truck.

Tesla’s only other truck currently in production is the stainless steel Cybertruck, which has failed to reap as many deliveries as estimated by Tesla CEO and billionaire Elon Musk prior to the start of deliveries.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TSLA stock fell from ‘extremely bearish’ to ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

TSLA stock has gained 36% over the past 12 months.

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