Why Tesla Semi Faces an Uphill Battle

Tesla (NASDAQ: TSLA) has built a business on creating products its customers are eager to buy. There's no financial justification for someone to purchase a $100,000 Model S over a less expensive gasoline powered vehicle or EV, but that's not the point -- Teslas are sold because they're desirable in a very intangible way.

That intangible value is why Tesla will have a hard time moving into the semi truck market. Tesla Semi has to compete on a dollar for dollar basis with not only diesel trucks but all-electric semis from powerhouses like Daimler's Freightliner, Volvo (NASDAQOTH: VOLVY), and Paccar's (NASDAQ: PCAR) Peterbilt and Kenworth lines. That may be harder than Elon Musk thinks.

Image source: Tesla.

Source: Fool.com