Market Overview

The Tesla Semi: Citigroup's First Impression

The Tesla Semi: Citigroup's First Impression

Tesla Inc (NASDAQ: TSLA) revealed its semi-truck Thursday, and while parts of the big rig remain in shadow, its capacity for disruption is clear.

Wall Street sees few positives for truck manufacturing rivals.

The Rating

Citigroup reiterated a Hold rating last week with with a $367 price target.

The Thesis

Citigroup analyst Timothy Thein said the Tesla Semi's price, back-end support, battery capacity, recharging infrastructure and maintenance availability remain unknowns.

Even some of the details Tesla explicitly outlined are uncertain, including its intended ability to charge for 7 cents per kilowatt-hour and to launch production in 2019, Thein said. 

“Given start-up issues with certain of its (less complex) car models, we question if that timeline slips." 

The Class 8 truck has “solid performance potential," such as a 500-mile range and quick acceleration ability, Thein said. 

Fellow Citigroup analyst Christian Wetherbee said widespread adoption of electric semi-trucks such as Tesla's is still far off. 

“Given the fragmentation of TL, we believe initial adoption could yield a margin advantage in certain lanes (drayage and other short haul applications), but if the technology was more widespread, we struggle to see the market maintaining price discipline and believe operators with lower cost bases would likely pass that along to shippers to drive market share,” Wetherbee said. 

Price Action

At the time of publication, Tesla was trading down 3.1 percent at a rate of $306.66.

Related Links:
Merrill Lynch: Tesla Semi Announcement Could Be A Reason To Buy Allison Transmission
Analyst: WABCO Could Get A Boost From Tesla’s Semi

Photo courtesy of Tesla. 

Latest Ratings for TSLA

Dec 2019MaintainsEqual-Weight
Dec 2019MaintainsSell
Dec 2019MaintainsOverweight

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Christian Wetherbee Citigroup Itay Michaeli Timothy TheinAnalyst Color Analyst Ratings Best of Benzinga


Related Articles (TSLA)

View Comments and Join the Discussion!

Latest Ratings

INFYBank of AmericaUpgrades
BRMKPrescience PointInitiates Coverage On15.3
DENNSunTrust Robinson HumphreyInitiates Coverage On21.0
DINSunTrust Robinson HumphreyInitiates Coverage On111.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

8 Semiconductor Stocks That Could Be Acquisition Targets

Pershing's Bill Ackman: 'Herbalife's Business Will Ultimately Fail'