An Update on the Tesla Semi and Other Strategic DevelopmentsAn Impressive Performance on the S&P 500Yesterday, Tesla recorded the second largest increase in the S&P 500 index with a jump of 6.66%. This performance coincides with the announcement of crucial updates regarding its electric semi-truck project, an initiative launched by Elon Musk in 2017 but faced with several delays.
Advances in the Tesla Semi Project
Despite these setbacks, Tesla reassured stakeholders that deliveries of the Tesla Semi are scheduled for 2026. The company revealed details about the truck’s range and payload capacity, highlighting impressive fast-charging capabilities. An executive announced that the factory under construction in Nevada should be operational by 2026, with a target production capacity of 50,000 units per year.
Pilot Tests and Truck Capabilities
Currently, the Tesla Semi is undergoing pilot tests with PepsiCo’s FritoLay division, which plans to add 50 more trucks to its fleet, in addition to the 35 trucks already being tested. The long-range Tesla Semi offers a range of 800 kilometers with a vehicle weight of 10.4 tons, while the standard range model can cover 482 kilometers with a vehicle weight of 9 tons. These trucks could cover over 1,600 kilometers in 24 hours thanks to fast-charging capabilities.
Strategic Changes and Cost Reduction
These announcements come amid strategic changes for Tesla, including a refocus on developing robotaxis, accelerating production of the low-cost Model 2, and implementing cost reduction measures in the Supercharger division. Meanwhile, shareholders are set to vote on a compensation package proposed for Elon Musk, valued at several tens of billions of dollars, at the annual general meeting on June 13.
Financial Performance and BYD Competition
Financially, Tesla remains overvalued with a P/E ratio of 47.68, well above the average for other automakers. Additionally, Tesla faces growing competition from BYD, which plans to launch an electric car priced under 20,000 euros in Europe next year, thus outpacing Tesla’s 20,000 euros model. This new competition increases pressure on European manufacturers in their transition to electric vehicles.
Threat from Chinese Electric Vehicles
This four-seat model will be offered at a significantly lower price than the small electric cars that Stellantis NV, Renault SA, and others rely on to achieve their energy transition. Its imminent launch puts additional pressure on European automakers in the race for supremacy in the post-combustion engine era. It is unlikely that a subsidy investigation by Brussels will eliminate this threat. “We are closely monitoring this model and others from Chinese EV manufacturers,” said Martin Sander, head of electric vehicles for Ford in Europe. “Of course, we are concerned about the arrival of new competition in the market.”
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