Tesla has provided a major update on its long-standing project to develop electric semitrucks, which has faced multiple delays since CEO Elon Musk first introduced the rig back in 2017.
The company confirmed that its Tesla Semi is on schedule for production-spec deliveries to customers by 2026 while also sharing more details on the EV truck's range and payload capacity. Dan Priestley, the senior executive overseeing the Semi truck’s engineering, revealed in Las Vegas that the new vehicle could travel 1,000 miles in 24 hours thanks to Tesla’s latest charging technology. This guidance surprised investors who had expected lower performance.
Tesla stock popped nearly 6% after the new details about the Semi truck were announced.
During his presentation, Priestley stated that the company's long-range Semi would have a range of up to 500 miles and a vehicle weight of 23,000 lbs. The standard-range truck would be capable of 300-mile trips and have an unladen vehicle weight of 20,000 lbs.
Additionally, he revealed that the company is ramping up production at its gigafactory in Nevada. Tesla plans to produce 50,000 units annually and begin delivering semi-trucks from its Nevada factory in 2026.
It seems that investors were relieved by the recent update on the Tesla Semi’s progress. The electric truck, first unveiled in 2017 with a promised 2019 launch, has faced delays ever since. Tesla finally started production in late 2022, but at a very slow pace.
The truck was initially tested by PepsiCo’s Frito-Lay unit in California. Eventually, several companies, including food distributor Sysco (SYY) and logistics service provider Martin Brower, reported using it. It was also recently spotted at the facilities of Walmart (WMT) and Costco (COST).
Thus, the company’s commitment to begin deliveries soon and its investments to boost production capacity are encouraging.
Is Tesla a buy or sell?
Tesla shares have been on an upward trend over the past month, adding more than 30% to the stock’s valuation. This rise has helped erase a significant portion of the electric car giant’s year-to-date decline, reducing it from over 40% to 25% since early January. More recently, Tesla jumped 15% in a day after Elon Musk struck a deal with China to roll out the self-driving technology “Full Self-Driving.”
