The reintroduction of the heavy-duty, all-electric truck comes at an intriguing time for the industry - but it may not be enough to excite Tesla investors
The Tesla Semi appears to be in high demand. This week, a shipping collective said it would buy 2,500 of the trucks in what it called the largest electric-truck order ever in the U.S.
Tesla is set to reintroduce its all-electric, heavy-duty truck to investors on Thursday evening, nearly nine years after CEO Elon Musk first promised the vehicle.
At an event, the company plans to inaugurate the Sparks, Nev., factory dedicated to making its Semi truck. The "Semi Rollout" is scheduled to begin at 9 p.m. Eastern time Thursday. Unlike the Cybercab event that Tesla hosted in Texas earlier this month, it will be livestreamed.
Musk first introduced the Semi in November 2017, driving one of the trucks onto a stage in California in front of a crowd of excited Tesla employees and fans. High-volume production began this April following several years of delays.
Tesla plans to serve at least the U.S. and European markets with the Semi. It is striving to begin delivering vehicles to European customers by the end of 2027. In the U.S., Tesla aims to deliver up to 15,000 Semis in 2026, the Wall Street Journal reported earlier this year. Tesla has said the Semi factory can make up to 50,000 trucks a year.
The Semi comes in two trims, Standard Range and Long Range, with the latter capable of driving 500 miles before needing to recharge. The company has told customers the Long Range version will cost $290,000, according to Electrek.
Morgan Stanley analyst Andrew Percoco estimates that the Semi could eventually be a multibillion-dollar source of revenue for Tesla. Still, it's unclear how much investors care about the Semi. Experts say that big-ticket items like robotaxis are still at the front of Tesla investors' minds.
CFRA analyst Garrett Nelson previously told MarketWatch that he is "skeptical" that either the Semi or a planned showcase of Tesla's Roadster sports car next month "will do much to raise investor enthusiasm."
Musk, whose comments can often rally investors, will also likely be absent from the Semi event. He's expected to join a state dinner at the White House for Chinese President Xi Jinping alongside a slew of other top technology executives on Thursday.
Tesla shares (TSLA) were down less than 1% in recent action on Thursday. The stock is down 16% so far this year.
Still, demand appears to be booming for the Semi. The truck has been used in pilot programs with a number of customers, including Walmart (WMT) and PepsiCo (PEP). Drone footage of the Nevada factory posted on social media showed Semi trucks branded with several company logos, including DHL (XE:DHL) (DHLGY).
On Tuesday, a collective of shippers that aim to lower their carbon emissions announced an order for 2,500 Semi trucks, which the group intends to deploy through a fair market lease program. The group said it was the largest electric-truck order in the U.S. and would nearly double the country's fleet of electric Class 8 trucks.
In a statement, Dan Priestly, Tesla's director of the Semi program, touted the lower cost-per-mile of the Semi compared to diesel trucks. The Semi's launch comes as diesel prices have been on the rise, climbing to over $6.50 a gallon in the U.S., according to AAA.
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Morgan Stanley analysts see that as an opportunity for Tesla and other companies working on autonomous trucks, including Aurora Innovation (AUR). Percoco said in a recent note that driverless trucks can provide a 20% lower cost per mile than human-operated trucks.
Tesla plans to make its Semi driverless, while Aurora on Wednesday said it is on track to end the year with 200 driverless trucks in operation. By 2030, Aurora wants to put more than 30,000 trucks to work.
-William Gavin