The tax reform act has passed the House and cleared a Senate committee where it will now go the Senate floor for a vote although I don’t have a date estimate for the vote. Doubts about how this will play out cast a shadow over stocks today and at the close the Dow fell 100 points to 23,358 on heavier trading volume. For the week the Dow had a net loss of 64 points or roughly 0.27%.
Disruption is coming to the trucking business! Shares of Renton based Paccar, the third largest truck maker in the world, and Cummins diesel both declined over 4% today in part due to the unveiling by Tesla of its potential game changing electric semi truck. Tesla hopes to have these in production by 2019 and the stats are impressive. The truck is projected to have a range of 600 miles fully loaded and will be operated at a cost of $1.26/mile vs $1.51/mile for a diesel. The Tesla truck can charge to 400 miles in a half hour. It will have regenerative braking and futuristic safety features but my concern is what happens when you are chugging up from Seattle to Snoqualmie Pass on a half charge during a snow storm? Watch the Tesla Truck launch video here. Amazing!
On a side note the growing EV car and truck markets might take my grandpa’s stogy old electric utility portfolio and transform it into the growth stock portfolio it used to be back when Thomas Edison and the electric lightbulb came into existence in the late 1800’s and early 1900’s. Oil has had a monopoly on transportation but it looks like Elon Musk is going to crack that monopoly in the years ahead. If this happens then electic utilities could potentially play a central roll in energy delivery for the US transportation system.