Towing has become the battle cry against electric trucks, but is this issue as pertinent as it sounds?
With the release of electric trucks to the market (Rivian R1T, Hummer EV, F-150 Lighting), towing, in particular, has become the albatross around the necks of EV truck manufacturers. Is the issue accurately portrayed by angry Facebook commenters, journalists, and YouTubers alike? I’ll give you one guess.
To start, electric trucks offer an amazing set of benefits to recreational and commercial consumers alike. They offer supercar-like specifications, they offer new use cases to a utilitarian and active market segment, and they do both of these things while remaining cheap to operate. Yet, despite these advantages, there is no denying that EVs face a set of new and daunting challenges regarding towing.
First of all, towing is very energy intensive. There is a reason an MPG estimate isn’t placed on the window tag of a new F250, RAM2500, or Silverado 2500. Not only is the vehicle tasked with overcoming an added thousand pounds or more, but it must do so while also battling increased air resistance. EVs are not unique in this aspect, but they must also deal with both limited charging infrastructure in many rural areas, as well as decreased range compared to gas and diesel alternatives. Compounding this issue, available chargers are often not designed for trailer-mounted vehicles, sometimes forcing the driver to detach the trailer, charge, and reattach, a task not required for ICE-powered counterparts. This combined set of problems can mean that some areas of the country are unreachable by electric towing vehicles.
Rivian R1T’s first real-world towing test shows 62% range loss
Even electric truck manufacturers are acknowledging these issues. On Ford’s most recent earnings call, the company stated that they would continue to sell and develop new gas and diesel Super Duty vehicles; the vehicles often tasked with towing the largest trailers, boats, and the like.
The Fast Lane Truck did a fantastic video covering these exact issues with an F-150 Lightning, a test where they were only able to achieve a range of close to 100 miles and were not able to reach their intended destination due to lack of charging infrastructure.
However, and this is an important question, how important is this problem? This is not to say that people should not have the ability to tow, but perhaps towing can be more accurately placed on their list of needs/wants when deciding on a vehicle to own.
To start, according to a poll of 250,000 full-size truck owners conducted by Strategic Vision, only 75% of owners towed between 0 and 1 time per year, with only the remaining 25% towing more frequently than once per year. And while mileage and towing weight were not included in the poll, it seems as though there may be a vast contingent of truck owners who don’t tow at all.
Furthermore, there are many use cases of towing that would involve traveling less than 100miles; local carpenters and construction workers moving within city limits, a truck towing an incapacitated vehicle to the closest repair shop, or even people towing their boats to the local lake or waterway. These use cases would not only fit even the limited range of 100 miles, but each could find many benefits from unique features such as onboard generators offered on many electric trucks, running power tools, running appliances, etc.
Overall, consumers should be more mindful of their actual needs and more carefully weigh the countless benefits offered by new electric offerings. For many, the conclusion may be that they still need the range and capability of an ICE truck to best suit their leisure activities and/or their livelihoods, but to say that this group is more than a minority is, at least somewhat, a fallacy. For manufacturers and infrastructure planners, this should be a wake-up call; there is a contingent of people who, despite the amazing advances of EV technology, are unable to use them to achieve certain tasks. These should be some of the first things addressed in efforts to expand EV adoption.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
