Piper Jaffray analyst Alexander Potter's analysis suggests Tesla's (TSLA) electric trucks could generate payback times of less than two years, based primarily on fuel and maintenance cost savings relative to diesel trucks. While unanswered questions remain, Tesla is likely to succeed in electric semi trucks given its battery cost advantage, Potter tells investors in a research note. He admits that it's easy to see why many investors met Tesla's truck announcement with skepticism. Relative to consumers, fleets constitute a "less forgiving market segment" given the strict return-on-investment adherence, Potter writes. The analyst has an Overweight rating on Tesla with a $368 price target. He believes that outside of Wabco (WBC), most truck stocks "seem ripe for disruption." The analyst has Underweight ratings on Allison Transmission (ALSN) and Meritor (MTOR) and Neutral ratings on Cummins (CMI), Paccar (PCAR) and Navistar (NAV).

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Deutsche Bank analyst Emmanuel Rosner downgraded Tesla to Hold from Buy with a price target of $123, down from $189. The analyst cites the "high likelihood" of Model 2 push-out and the company's change of strategic priority to Robotaxi for the downgrade. Deutsche's Buy rating was predicated on Tesla's next-generation vehicle priced at $25,000 coming late next year, which would allow the company to reaccelerate volume, margins and free cash flow, and potentially come to dominate the Western electric vehicle market, the analyst tells investors in a research note. However, pushing out the Model 2 will create "significant" earnings and free cash flow pressure on 2026 and beyond estimates, and make the future of the company tied to Tesla "cracking the code on full driverless autonomy," which represents a "significant technological, regulatory and operational challenge," says Deutsche Bank. The firm views Tesla's shift to Robotaxi as "thesis-changing," and worries the stock will need to undergo a "potentially painful transition in ownership base," with investors previously focused on electric vehicle volumes and cost advantages potentially "throwing in the towel, and eventually replaced by AI/tech investors with considerably longer time horizon."

Allison Transmission partnered with SANY, a global heavy equipment manufacturer for the mining and construction markets, to integrate the Allison 4970 Specialty Series transmission into SANY's STC5000 500-ton all-terrain crane. These new cranes will be in operation in remote areas of China including the desert and mountain terrain. "Our off-highway vehicles require a powerful transmission designed to meet the challenge of navigating difficult terrain," said Du Jian, R&D Director of Crane Chassis, SANY. "We selected the Allison 4970 SP due to its proven ability to increase vehicle productivity and maneuverability." In addition to SANY's STC5000 crane, Allison is also the propulsion solution provider for the company's SAC600E 60-ton crane.

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