Tesla (TSLA) unveiled the Tesla semi-truck at an event in California last night.
Chief Executive Elon Musk said it will have a range of at least 500 miles, surpassing most expectations. He said there was a one-million-mile guarantee and that all-in, it would be cheaper than a traditional diesel truck.
Production won't start until 2019 but Wal-Mart (WMT) and JB Hunt (JBHT) already said they were on board today.
Mr. Musk also surprisingly unveiled a new Tesla Roadster. A roadster was the first electric vehicle Tesla made (to fund the Model S). The new one will go 0-60 mph in a staggering 1.9 seconds and boast a 620 mile range. It would be the fastest production car ever made. The target date is 2020.
Tesla skeptics would argue that this event is just another distraction, but Tesla's +$50 billion market cap is predicated on further disruption in the transportation sector.
First and foremost, the company needs to execute on the Model 3 that has hundreds of thousands of orders and is already about three months behind production schedule. If we have learned anything about Tesla, it's that missing production targets will not deter the Bulls. Tesla missed production targets for the Model S and the Model X, but the stock has defied gravity ever since the insatiable demand for Tesla electric vehicles became apparent.
The Tesla story remains the same -- grand plans fueled by dilutive capital raises amid feverish demand and supply constraints.
Elon Musk has an impressive slate of disruptive EVs in the backlog -- the Model Y mass market SUV, the Semi and a new roadster. Still, the company is likely dependent on the capital markets given the company's tepid balance sheet.
The next update we may get from the company will be the fourth quarter deliveries and possibly an update on Model 3 production in early January.