Elon Musk Faces New Test of Expansion Capabilities

Elon Musk Faces New Test of Expansion Capabilities

After its stock has quintupled, Tesla collides with electric trucks

Elon Musk, founder of electric car manufacturer Tesla, appears to have won the bet against the effects of the coronavirus pandemic on his company, whose stock has soared and multiplied fivefold since the beginning of the year.

But Musk, who is about to close out a highly successful year, will face even greater challenges as he anticipates testing new electric vehicles in the medium-duty truck segment, according to the company's long-term plan.

 Having demonstrated that consumers will enthusiastically buy electric vehicles, Musk now wants to demonstrate that the trucking industry—a risk-averse, low-profit-margin business—will embrace battery-powered vehicles, according to the Wall Street Journal.

Tesla's anticipated semi-trailer truck is part of a vehicle production boom Musk has planned for next year. These plans include a new electric pickup truck, the start-up of factories in Berlin and Texas, and increased production at the company's Shanghai plant.

Tesla also aims to produce at least 68% of its inventory next year, Musk suggested, down from the 500,000 vehicles the company targeted for 2020. The company's stock has more than quintupled since the beginning of the year, buoyed by five consecutive quarters of profitable growth.

These gains could put the company on track for its first full year on the secondary market. The stock is trading at more than 16 times annual sales, significantly higher than its automakers, and is expected to be added to the S&P 500 index in December.