e25G Gear | Solectrac | Compact Electric Tractor

The e25G delivers maximum torque at zero RPM, surpassing diesel tractors, and with only one moving part in the motor, there’s up to 10x less maintenance than traditional tractors. No idling, no fuel to buy, no engine oil to replace, and no harmful exhaust or emissions to breathe in.

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Tesla's market cap is roughly $500 billion, and that's after a roughly 50% haircut since it topped $1 trillion in 2021. Monarch Tractor, which recently debuted another key electric vehicle born in the state of California — a driver-optional, all-electric tractor — valued by investors in the private market at $271 million.

But its CEO Praveen Penmetsa says there are several reasons to believe it's the next big thing in agtech, and its home base is the perfect place for agriculture and tech to finally come together in a business model that solves some of farming's biggest challenges.

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"We are turning Livermore into the center of agtech for the world over," Penmetsa told CNBC's Julia Boorstin from a local vineyard near its headquarters in California after it was named to the 2023 CNBC Disruptor 50 list on Tuesday, ranking No. 49.

The startup recently signed a deal with Constellation Brands, making the liquor giant the first company to put its MK-V tractors, which rolled off the production line in December, out in the fields.

Farmers are struggling with high labor costs and their diesel engine carbon footprint, while corporations are facing new sustainability costs. These are problems that Monarch Tractor can solve in combination.

"It's more efficient on the labor side but decreases the emissions and can power all the other equipment on the farm," Penmetsa said.

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