Tesla starts high-volume Semi production, launches Semi Charging for Business

Tesla announced that its Class 8 battery-electric Semi has begun high-volume production at Gigafactory Nevada. The company said the Gigafactory has the capacity to make 50,000 Semis a year, though The Wall Street Journal reported that for this initial year, the Sparks-based factory, which spans 5.4 million sq.ft., will produce 5,000 to 15,000 units.

The milestone begins to validate the “big scale” ambitions outlined by Tesla's Dan Priestly at ACT Expo 2024.

Tesla now offers a standard range version with a 325-mile range and long range that can drive 500 miles on a single charge. The latter adds more than 3,000 lbs. in curb weight, according to Tesla’s specs.

The company also launched Tesla Semi Charging for Business, a program that allows businesses to own and operate Tesla’s 1.2 MW Megacharger and/or 125-kW Basecharger. The Megacharger could return 60% of a Semi’s range in 30 minutes, while the Basecharger, ideal for regional haul where the trucks return to base, would take 4 hours. Tesla requires a minimum of two units and will install the units themselves or guide a preferred integrator. The company will also service and maintain the chargers.

Tesla’s Megachargers will be rolling out across Tesla’s network, including at certain Pilot Travel Centers along Interstates 5 and 10 towards the end of this summer.

PepsiCo has used the Semi in operations for more than three years, and third-party testing by North American Council for Freight Efficiency in 2023 found the use of opportunity charging could allow a Semi with nearly full load to travel over 1,000 miles in 24 hours. In NACFE’s most recent Run on Less — Messy Middle, a Tesla Semi traveled 465 miles between charges during slip-seat operations.

“And that was at 750 kilowatt,” noted NACFE Executive Director Mike Roeth. “And now they're launching the Semi at 1.2 megawatt.”

Roeth reiterated that the Semi can regain 400 miles of range in 30 minutes.

“A lot of people don't think that's real,” he said. “We're here to show it is real. The battery-electric trucks are getting better and coming quickly.”

Will demand be there?

Demand that stretches the Gigafactory’s limits is likely several years away, as the total number of all zero-emission commercial truck deployments in the U.S. (including yard tractors) reached 59,313 last June, according to CALSTART. That includes Classes 1 through 8.

The standard Tesla Semi has been reported to cost $260,000 and the long-range around $290,000. While considerably more than a standard diesel day cab, the volatile costs of diesel fuel and reduction in maintenance costs could make the total cost of ownership far more appealing. Like all BEVs, the Semi will benefit from lack of an engine and aftertreatment system to maintain, while the regenerative braking will reduce wear and tear on brakes. And even though it’s tempting to test the Semi’s launch speed—0 to 60 mph in 5 seconds unloaded; 20 seconds when fully loaded—drivers should ease into acceleration to prevent premature tire wear.

To truly capitalize on the Semi’s efficiency and range, a fleet would have to develop a model where depot charging is the primary source. The average fuel cost per mile in trucking as of 2024 was 48 cents, according to ATRI. Depot charging, while slower, could run about half that for a Semi, figuring depot electric costs at 10 to 20 cents /kWh. Public fast charging, meanwhile, costs an average of 49 cents/kWh, according to analysis firm Paren. The Semi uses 1.7 kWh per mile, so that could be about 83 cents per mile.

As more Semis enter the industry, the industry will have more clarity on where a fleet could see better returns with a Tesla Semi, and where diesel remains the best option.

For now, the Semi has re-energized the conversation around electric trucks.

“A lot of people like writing off BEVs right now, because you can't get the power, and this, that and the other,” Roeth said in March while revealing Run on Less data to the media. “I think quietly, there's a lot coming.”

He also cited Windrose electric truck, which crossed 400 miles during Run On Less using 68% of its battery. This truck, like the Tesla Semi, has an aerodynamic “bullet train” shape and centered steering wheel.

With BEV makers figuring out how to efficiently overcome wind resistance and electrical demands, Roeth said now that “Battery-electric trucks are a program management and supply chain challenge, not an engineering and technology challenge—and batteries are getting better and better and better.”

Meanwhile, due to regulations such as the upcoming low-NOx rule for MY2027 diesel trucks, the argument for BEVs improves.

“These diesel trucks are unbelievable, but they come with huge complexity and huge costs, and that's only going to get worse,” Roeth said. “And so we believe battery electric is our future.”