TLDR
- The electric vehicle manufacturer commenced large-scale Semi truck production at its newly constructed Nevada facility capable of building 50,000 units annually.
- ZET SCALE, a recently established freight coalition, selected Tesla as the primary supplier for a massive 2,500-vehicle electric truck order, with additional vehicles from PACCAR, Volvo, and RIDE.
- Additional commercial commitments feature 500 units from Einride and 370 from WattEV, demonstrating expanding fleet operator demand.
- Shares of TSLA have declined approximately 16% in 2025, while Wall Street consensus price targets suggest modest upside potential of around 3%.
- The company confronts emerging rivalry from BYD’s ETT 44 electric semi-truck in European markets, where Tesla’s Semi rollout is scheduled for next year.
Shares of Tesla are currently trading around $378 following a challenging period for the EV manufacturer, with the stock falling roughly 16% since the beginning of the year. This decline persists despite the company achieving a significant manufacturing breakthrough with its electric Semi truck program.
The automaker officially launched full-scale Semi manufacturing operations this week at its freshly built facility located in Sparks, Nevada. Chief Executive Elon Musk delivered the announcement via prerecorded video during the plant’s ceremonial opening on September 24.
Located adjacent to Tesla’s 4680 battery cell manufacturing lines at Gigafactory Nevada, the new facility encompasses 1.7 million square feet of production space. The plant’s ultimate capacity targets annual output of up to 50,000 Semi trucks.
The company originally revealed the Semi prototype in 2017. While restricted customer deliveries commenced in 2022, scaling up to volume manufacturing faced repeated delays stemming from supply chain disruptions and battery availability challenges.
Customer shipments are scheduled to commence this week. The company has not disclosed specific production volume figures at this stage.
Historic Fleet Order From Emerging Logistics Alliance
ZET SCALE, a recently launched freight coalition, has selected Tesla as the lead provider for an order encompassing 2,500 electric Class 8 trucks. This single procurement would effectively double the current population of battery-powered heavy-duty trucks operating across United States highways.
While Tesla anchors the agreement, the company won’t fulfill the entire order independently. PACCAR’s Kenworth division, RIDE, and Volvo Group’s Volvo brand are also designated as suppliers within the coalition framework.
Vehicle deployments will occur progressively over multiple years across 10 regional distribution centers, spanning Los Angeles, Houston, Chicago, Atlanta, and the greater New York metropolitan area. Even when divided among participating manufacturers, Tesla’s allocation should exceed its previous largest Semi commitments.
Earlier contracts include a 500-vehicle agreement with Swedish freight technology firm Einride announced in August and a 370-truck deal with WattEV finalized in May. Additionally, PepsiCo and Microsoft participate in a separate 2,500-truck procurement announced this week through transportation consortium Catalyst Mobility.
PepsiCo served as among Tesla’s earliest Semi adopters and currently operates the vehicles within its commercial fleet. DHL and US Foods also maintain active customer relationships.
International Rivals Emerge
Tesla’s value proposition emphasizes reduced operating expenses. Musk highlighted that electricity delivers lower per-mile costs compared to diesel fuel, which represents the primary consideration for fleet managers evaluating vehicle transitions.
The extended-range Semi achieves up to 500 miles per charge, while the base configuration delivers 325 miles. The company also intends to integrate its autonomous driving technology into the Semi platform in future iterations.
However, Tesla won’t dominate the European electric trucking sector unchallenged. During the IAA Transportation exhibition, BYD introduced the ETT 44, a 44-tonne electric tractor delivering up to 1,000 horsepower and approximately 372 miles of operating range.
Tesla’s European Semi introduction is planned for next year, though initially featuring only the standard-range configuration. This strategy could position Tesla at a range disadvantage relative to BYD’s European offering.
Financially, Tesla’s automotive gross margin excluding regulatory credit revenue decreased to 16.3% in the most recent quarter. Energy storage segment margins experienced substantial compression as well, contracting to 20.4% from 39.5% in the prior-year period.
Analysts assign TSLA a Moderate Buy consensus rating on TipRanks, derived from 11 Buy recommendations, 12 Hold ratings, and two Sell opinions. The consensus price target of $388.85 suggests approximately 3% appreciation potential from present trading levels
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
