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

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

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

And it could prove a windfall for WABCO Holdings Inc. 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 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.