Tesla Begins Semitruck Deliveries Amid Slowing EV Sales. What It Means for TSLA Stock.
In 2017, Tesla (TSLA) CEO Elon Musk unveiled an electric big rig designed to compete with diesel trucks. Production was supposed to start in 2019, but it was delayed by almost a decade.
Deadlines got pushed and rivals piled in. Then a reversal in U.S. electric vehicle policy raised fresh doubts about demand. The truck is finally rolling out to customers, and it lands at a moment when truckers and Tesla investors are both paying close attention.
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Diesel prices in the U.S. have soared to record highs, Reuters reported. Meanwhile, Tesla is betting big on businesses that go well beyond its familiar sedans and SUVs.
Tesla Stock Leans on Bigger Bets
Tesla is still best known for selling cars. But the company is clearly reshaping itself and diversifying its revenue base.
In its second-quarter update to shareholders, Tesla said revenue topped $100 billion over the past 12 months for the first time. It also posted record second-quarter vehicle deliveries.
Tesla noted that deliveries depend on overall demand for its products. Put simply, bigger factories only help if enough buyers show up. Presently, the company says battery pack capacity is the main limit on building more vehicles.
So, Tesla is spreading its bets.
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It started producing Cybercab, its dedicated vehicle for its Robotaxi fleet.
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Robotaxi service is now live in seven major U.S. metros.
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Tesla even shut down its Model S and Model X lines at its Fremont factory to make room for Optimus humanoid robots.
The company calls this its “largest and most exciting period of investment,” and the Semi fits right into that plan.
Semi Deliveries Finally Begin
Tesla is delivering Semi trucks to a first set of customers, executives said at the company’s plant in Sparks, Reuters reported. The news came at a webcast event late Thursday. Customers including PepsiCo (PEP), DHL (DHLGY), and US Foods (USFD) were invited on stage.
Musk skipped the event. Instead, he sent a recorded video message. “I’d recommend placing more orders if you haven’t already, but the waiting list is already pretty significant,” Musk said.
Tesla didn’t reveal pricing or near-term production volume. It repeated its goal of building 50,000 Semis a year at the Nevada plant. Tesla began limited deliveries to customers such as PepsiCo in late 2022. The first truck rolled off the high-volume production line in April.
In its shareholder update, Tesla said Semi production remains on schedule to start in 2026. It’s also ramping up output of its 4680 battery cells to support the truck.
Last week, a coalition of some of the world’s largest shippers, including Microsoft (MSFT) and PepsiCo, ordered 2,500 Semis, Reuters reported, citing clean transportation nonprofit Catalyst Mobility.
To put that in perspective, the nonprofit said that single order is nearly twice the size of every electric Class 8 truck now on U.S. roads. Class 8 covers the heaviest trucks, the big rigs that haul freight across the country. Last month, Swedish freight technology company Einride AB also announced a deal to add 500 Semis to its fleet.
Truckers care about two things: how far a rig can go and what it costs to run.
The long-range Semi can travel 500 miles on one charge while fully loaded. Dan Priestley, Tesla’s director of Semi-truck engineering, said that figure reflects actual driving. “Our customers have validated it,” he said, according to Reuters. A standard version offers 325 miles.
Tesla’s Megacharger can add up to 60% of range in 30 minutes, according to Tesla’s website. On a 500-mile truck, that’s up to about 300 miles during a half-hour break. The slower Basecharger, built for overnight depot stops, adds the same 60% in about four hours.
Tesla also argues the Semi can cost less to own than a diesel truck over time. The company says electricity typically costs less than diesel. And with no diesel engine, transmission, or exhaust system, there are fewer parts to fix.
There’s an environmental angle, too. Combination trucks account for 16% of U.S. vehicle emissions, according to Tesla.
What’s Next for TSLA Stock?
The Semi won’t erase EV demand worries overnight. Tesla hasn’t shared pricing or near-term volume, so the revenue impact remains unclear. But the story has changed. For years, the Semi was a promise. Now it’s a product with a growing customer base.
With diesel prices at record highs, the timing may finally be working in Tesla’s favor. The next test is whether Nevada can build trucks as fast as shippers want them.
Out of the 41 analysts covering TSLA stock, 15 recommend “Strong Buy,” two recommend “Moderate Buy,” 20 recommend “Hold,” and four recommend “Strong Sell.” The average TSLA price target is $406.09, above the current price of about $360.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com