Tesla Semi Enters Production and Will Dominate
The Tesla Semi would be @Tesla's most important hardware product to date.
1. 4% of all vehicles but 30% of all emissions,
2. Poor 4-7 mpg efficiency.
3. Move 72% of all cargo by weight in the US,
4. >2m global unit sales by 2024,
5. Cost economics > brand loyalty. pic.twitter.com/HvsFyOPYXR
— Mayur मयूर Thaker ठाकर (@freshjiva) June 18, 2021
The semi trucking industry is ripe for disruption due to the economics of diesel fuel -vs- an electrically powered semi truck. This is yet another part of the Tesla master plan part 2 in which Elon Musk stated that Tesla will build a vehicle to address all major segments of which a Tesla semi truck is one (the Tesla "Model 2" is also another vehicle in that plan).
The world awaits the most important deflationary force we've seen in transportation since economies of scale for diesel fuel kept prices low while GDP compounded at 8% for decades.
Imagine the macro impact of a ~25% drop in cost for an industry that hauls 72.5% of all US cargo. https://t.co/XCHOHHE38J
— Mayur मयूर Thaker ठाकर (@freshjiva) July 20, 2021
The Tesla semi is going to be Tesla's most important vehicle in terms of profit and impact to the environment with clean energy.
Tesla Semi Production
Tesla is planning to produce 5 semi trucks per week to start with and will take place at a building near its Giga factory in Nevada. I believe Tesla will ramp to many more than this over time. Sources say that the final debugging is taking place which means production is just around the corner.
Elon Musk did a Tesla semi unveil back in 2017 and has reiterated the importance of bringing the Tesla semi into the world. Tesla will use its semi trucks for its own operations to starts and will then start producing them for other companies, like Pepsi Co.
Will Tesla Semi be Autonomous?
The Tesla Semi will be the best semi truck on the market and greatly reduce the cost of trucking just by being an efficient electric vehicle alone. But there is a hidden aspect to the Tesla semi that is even more important than the more efficient fuel and energy usage. It is autonomy - Tesla and its full self-driving system.
A Tesla Semi truck has to drive mostly in a straight line for most of its driving. Only a small part of its driving will be complicated when it has to go to its destination either in a city, or at a warehouse to deliver its goods. This means to me that a Tesla semi will be able to take advantage of autonomous driving sooner than Tesla releasing a level 5 autonomous robotaxi.
A full autonomous semi truck eliminates most of the $30,000 to $60,000 salary that truck drivers make. This money will instead be almost pure profit for Tesla. The cost of each Tesla semi is expected to be between $150,000 and $180,000. On the Tesla website, the Semi can be reserved with a $5,000 down payment and another $15,000 due 10 days after that.
When do you think the first Tesla semi trucks will be delivered to customers? Will this be Tesla's most profitable vehicle?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter, Facebook, LinkedIn and Instagram to stay in touch and follow his Tesla news coverage on Torque News.