Tesla Wins Major Semi Order and That Might Not Even Be the Best Part
The ZET SCALE sales agreement removes one of the biggest obstacles to Tesla heavy truck demand.
Overview
It sure is an interesting time to be a Tesla (NASDAQ: TSLA) investor. There's no shortage of intriguing things in the works as the electric vehicle (EV) maker gears up for its long-awaited Roadster unveiling in October, wins a huge order for its electric Semi truck, and slowly moves forward with its Cybercab robotaxi rollout, all with an eye on a future that might revolve entirely around artificial intelligence (AI), humanoid robots, and driverless vehicles. Tesla just landed a historic order as the primary manufacturer for a 2,500-unit order from ZET SCALE. But there's even more insight to glean from this unique order, and it's good news for investors and Tesla.
Tesla winning a 2,500-unit order from ZET SCALE is great news, as it's the largest electric heavy commercial truck order in U.S. history. That order alone would nearly double the number of big electric trucks on U.S. roads, and ZET SCALE is aiming to put more than 10,000 on the roads over time. Now, to be fair, it isn't yet clear if these will all be Tesla Semis, as the company is named the primary supplier, along with three other manufacturers as secondary suppliers. Still, the 2,500-vehicle order already dwarfs Tesla's Einride 500-truck deal, which was previously the largest Tesla Semi order. But the most intriguing thing might not be Tesla winning the order.
Details
A financing unit, ZET Financial, is the entity placing the purchase orders and it runs a leasing program. To put it concisely, the finance arm's entire goal is to take the residual-value risk from fleet operators. But let's break that down and explain what that means, and why it's so important for Tesla. When a fleet or company buys a traditional diesel semitruck, the company does so with decades of history and data that can project fairly closely what the truck will be worth in five to 10 years. That knowledge enables the company to confidently put the future resale value, or its residual value, on its balance sheet.
Source
Originally published at www.fool.com.