Tesla Semi production is due to begin in 2021 at the company's new factory in Texas, which is currently under construction. Companies are eagerly awaiting the start of sales as electric trucks must help them meet their CO2 reduction targets. Semi will be the force behind Tesla's 40-fold increase by 2030, says the analyst.
"We're very bullish on the Semi," said Garrett Nelson, a senior equities research analyst with the investment research firm CFRA. This year's "meteoric" stock run-up provided Tesla with the capital necessary to accelerate growth, he said, "and the Semi truck is an important part of that," Benzinga reports.
With 2,100 acres near Austin, Texas, Tesla is building the most advanced factory where it will be producing Model Y, Cybertruck, and Semi starting in 2021. "Tesla certainly has plenty of land to really expand their production and broaden their vehicle offerings," Nelson said.
Brands and logistics companies have already ordered hundreds of the electric freight truck, and are continuing to increase their orders. In November, logistics company Pride Group Enterprises placed an order for 150 Semis and said it plans to increase it to 500 units.
Another 125 trucks were ordered by UPS. "We have a good working relationship with Tesla, and they have been talking to us routinely about their plans," the UPS statement said. "We look forward to receiving the Semis we've ordered."
Walmart Canada currently has a total of 130 orders for Tesla Semi, and another 100 units have been ordered by PepsiCo. Leading companies are creating strong demand for electric trucks.
In 2017, Tesla CEO Elon Musk said their battery-powered truck would be 20% cheaper to operate than diesel trucks, and more profitable to use than trains. Considering the company's new developments in batteries, it is to be expected that the performance will be even better.
In November, Musk announced that Tesla would use a new 4,680 cell design and new battery architecture to produce the Semi, unveiled at the Battery Day event in September. He indicated that Tesla Semi achieving a range of 800 kilometers (500 miles) and 1,000 kilometers (621 miles) shouldn't be a problem.
While other manufacturers are planning their own versions of Class 8 electric trucks, Tesla's breathtaking rise in market capitalization has given the company a huge competitive edge that will help its leadership.
Nelson is confident that Tesla will sell about half a million vehicles this year. He points out that the company has also set a target to sell 20 million vehicles a year by 2030, and believes Semi will help Tesla achieve that goal. "That's a 40-fold increase," he said. "The Semi will help them get there."
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.