Tesla Inc.

stated that the production schedule for the new electric trailer remains tight due to the lack of the special battery cells needed to operate the large truck.

The Silicon Valley automaker said this week that it plans to deliver the first Tesla Semi by the end of the year. Expanding production to meet this goal will test Tesla’s ability to adapt and fulfill its promise to fleet owners in an industry more focused on cost and performance than the typical Tesla customer.

It is very difficult to spread production, General Manager.

Elon Musk

Wednesday’s paycheck indicated. A big part of the reason – the main reason we haven’t released new products faster is Tesla Semi, for example – is that we just don’t have enough cells to do it.

The semi-finished product, which was unveiled in 2017, was originally supposed to be in the hands of buyers in 2019. Since then, its arrival has been delayed by two years – delays that Mr Musk has repeatedly blamed on battery shortages.

Musk said Tesla was very confident in its ability to produce battery-powered trucks for long distances. The company said the Semi will have a range of up to 500 miles and use five times more battery power than Tesla cars.

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But it won’t sell for five times the price of the car, Musk said. So it makes no sense to do that halfway now, but it would make perfect sense once we have solved the problem of limiting cell production.

Tesla did not immediately respond Thursday to a request for details on when trailer production will begin and how many vehicles will be delivered by the end of the year.

The company said the electric truck will be built at its new plant in Austin, Texas, its fourth auto assembly plant, which is expected to begin delivering vehicles later this year. companies, including

Walmart Inc,

FedEx Corp.


United Parcel Service Inc,

Ryder System Inc.


J.B. Hunt Transport Services Inc.

has reserved a table on the floor.

We have a lot of fleets placing orders, and they’ve been waiting a long time, said Tim Denoyer, Vice President and Senior Analyst at ACT Research, a provider of transportation industry data. Even if they cannot do so profitably, there is certainly pressure to increase production by the end of the year.

Tesla said the truck would cost between $150,000 and $200,000. A new Class 8 tractor with a diesel engine sells for an average of $110,000 to $130,000.

However, Mr Denoyer said Tesla should have a cost advantage over other car makers developing heavy electric trucks because it makes its own batteries. Most OEMs [original equipment manufacturers] will be forced to outsource batteries to other suppliers, he said. Most people won’t be able to afford Tesla’s costs.

Email Jennifer Smith at [email protected] and Paul Page at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the print edition of 29. January 2021: production of Tesla trucks with battery cells.

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