Analyst: WABCO Could Get A Boost From Tesla's Semi

Tesla Inc (NASDAQ: TSLA)’s Class 8 semi rollout is the bane of the trucking industry.

With early orders from the likes of Wal-Mart Stores Inc (NYSE: WMT) and J B Hunt Transport Services Inc (NASDAQ: JBHT), the automaker stands to poach market share from PACCAR Inc (NASDAQ: PCAR), Navistar International Corp (NYSE: NAV), Daimler AG, and Volvo AB ADR.

And it could prove a windfall for WABCO Holdings Inc. (NYSE: WBC), according to one analyst.

“It is unclear how some of the different component suppliers will fair from this announcement, but we think WABCO could be a potential winner if Tesla sources its ‘enhanced autopilot’ components from a third party,” Buckingham Research analyst Neil Frohnapple said in a Friday note.

Enhanced autopilot will be the standard in Tesla Semis and will include automatic emergency braking, lane keeping and collision warning — WABCO’s expertise. Tesla may call on the technology manufacturer as a supplier.

Tesla's transmission-less vehicle is seen to have no effect on Allison Transmission Holdings Inc (NYSE: ALSN), as it targets linehaul applications to which Allison has no exposure, Frohnapple said. (See Frohnapple's track record here.) 

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Photo courtesy of Tesla.