Tesla will launch its first high-capacity Semi electric heavy truck factory in Sparks, Nevada, USA, indicating that the company is taking its commercial truck business to the next level. For Tesla, this is not only an expansion of production for new models but also a step to find additional growth in the context of intensifying competition in the passenger vehicle market.
The factory's production is aimed at increasing capacity next year.
Tesla Semi was first released in 2017, and in 2022, it began to be delivered in small quantities to early customers such as PepsiCo. With the launch of the new factory now, this means that the production of this model will shift from small-scale trial production to a higher volume stage. According to Tesla, the company hopes to increase the production of Semi to a higher level by next year.
Currently, Tesla's traditional electric vehicle business is facing more intense competition globally, and the rising fuel costs in the commercial transportation sector have also provided an entry point for electric heavy trucks. In contrast, the market advancement of Cybertruck after its launch has not been smooth, which is why Semi is seen as another path for Tesla to expand its product line.
Orders start to increase.
Recently, orders for commercial vehicles have provided additional support for the expansion of production at Semi.
- Industry alliance ZET SCALE indicates that Tesla has been selected as the main vehicle manufacturer for the first batch of 2,500 electric truck orders.
- The long-term goal of this alliance is to purchase over 10,000 electric trucks from multiple suppliers.
- The logistics company Einride has also agreed to order 500 units of Tesla Semi for its fleet, with some vehicles planned to be deployed this month.
These orders are not yet sufficient to indicate that the market has fully opened up, but they do at least show that Tesla's progress among fleet customers is accelerating.
Autonomous driving remains a key focus in the future.
During the July earnings call, Musk stated that Tesla's FSD, which is the "full autonomous driving" system, will be used in Semi in the future, but no specific date was given. He mentioned at the time that there is a shortage of drivers in the trucking industry, and autonomous driving is very important for this market.
According to Musk's latest statements, Tesla expects to make the autonomous driving feature of Semi available by the end of this year or early next year. However, Musk has delayed the timeline for autonomous driving on multiple occasions in the past, so this progress still needs to be realized in the future.
Meanwhile, Aurora Innovation and Kodiak AI are advancing the testing of driverless trucks and transporting goods for their partners. In contrast, Tesla's main selling points for Semi currently remain range and the charging network.
- Long-range version Semi: Estimated range of 500 miles per charge
- The standard version is expected to have a range of about 325 miles.
The European market is also within the plan.
Tesla also plans to introduce Semi to the European market. Local competitors Volvo and Daimler Truck are already selling battery-powered heavy truck products. If Tesla wants to increase its market share, in addition to increasing production, it also needs to make further progress in delivery timing, charging infrastructure, and autonomous driving capabilities.
The International Council on Clean Transportation previously noted that trucks and buses account for less than 10% of road vehicles globally, yet they contribute nearly half of air pollution related to transportation. For fleet operators, the attractiveness of zero-emission commercial vehicles will further increase if they can reduce operating costs.
