Will Tesla Own the Electric Truck Market Too?

That Tesla (TSLA) is pointing a way forward for electric cars is well known and accepted, even if you wouldn't consider buying its shares. But Tesla's ability to expand into the truck market has been given less credence--and that could be a mistake, according to a new Deutsche Bank report.

Remember, back in July 2016, Tesla released its so-called master plan, one that included plans for an electric semi-truck. And while the Model 3 has gotten all the attention, analysts have been less concerned about what a Tesla truck--or business model--could look like, although at least one warned that truck makers "would be wise to stymie their laughter."

Now, Deustche Bank's Rod Lache and team argued that "disruption to this market may come sooner, and Tesla may play a larger role than is widely expected." They explain why:

We expect Tesla’s Electric Trucks to come soon, with SOP in late 2018 based on plans to utilize slightly less vertical integration (Tesla does not see any reason to make their own Cabs or Gliders), and common sourcing with Tesla’s light vehicles (uniquely possible for EV’s). Tesla’s leadership in AI/Autonomous Driving could also represent a significant advantage in the eyes of fleet operators. We believe that Autonomous Vehicles will be deployed sooner than expected. And we do not believe that there are significant regulatory obstacles (Autonomous Cars/Trucks are allowed as long as they comply with Federal Motor Vehicle Safety Standards —i.e. they must have steering wheels, brakes, etc., even if there is no driver).

Shares of Tesla have fallen 0.6% to $353.25 at 10:01 a.m. today.

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