Tesla Makes Its Biggest Semi Push Yet. Nevada Factory Opens With 50,000-Truck Annual Goal.

Tesla is moving its long-delayed electric Semi into a new phase, opening its first factory designed for high-volume production of the heavy-duty truck as the automaker seeks a bigger role in the commercial freight market.

The company inaugurated the facility in Sparks, Nevada, on Thursday, nearly nine years after CEO Elon Musk first unveiled the Semi in 2017. Tesla began delivering a limited number of the electric trucks to customers, including PepsiCo, in late 2022, but the new plant gives the company dedicated capacity to significantly increase production.

Tesla plans for the Nevada facility to eventually produce 50,000 Semis annually, or roughly 1,000 trucks per week. The figure represents the plant's planned capacity rather than its current production rate, which Tesla has not disclosed. The company also expects the production ramp to create more than 3,000 jobs in Nevada.

Musk did not attend the factory opening in person, instead appearing in a prerecorded video in which he described the Semi as a "breakthrough product for heavy shipping." "It's almost like a sports car in truck form," Musk said.

The expansion comes at a critical time for Tesla as the company's traditional electric vehicle business is facing increasingly intense global competition, while the Semi gives Tesla access to the massive commercial trucking industry. High diesel prices could also strengthen the economic argument for fleet operators considering electric alternatives.

ZET SCALE, a freight purchasing alliance backed by major shippers including Microsoft and PepsiCo, this week selected Tesla as the lead supplier for an initial purchase of 2,500 battery-electric Class 8 trucks. Organizers say the program ultimately aims to acquire at least 10,000 electric trucks from multiple manufacturers.

Swedish freight technology company Einride has separately announced plans to add 500 Tesla Semis to its fleet, providing another potentially significant source of demand as Tesla increases output.

The Semi's arrival at scale would mark a major shift from Tesla's years of limited production. The truck was originally expected to enter production years earlier, but its rollout faced repeated delays. The first vehicle from the new high-volume production line was completed in April, according to Reuters.

Tesla says the long-range Semi can travel about 500 miles on a full charge, while a standard-range version is rated at about 325 miles. The company is also building a specialized service network for Semi customers, including mobile technicians that can perform repairs in the field.

Dan Priestley, Tesla's director of Semi engineering, said trucks already operating in fleets have demonstrated 98% uptime, an important metric for commercial customers whose profitability depends heavily on keeping vehicles on the road.

Autonomous driving is another part of Tesla's longer-term pitch. Musk said during Tesla's July earnings call that the company expects to eventually bring its Full Self-Driving technology to the Semi, arguing that autonomous trucks could help address the industry's shortage of drivers.

He suggested the technology could reach the Semi around the end of 2026 or early 2027, although Tesla has repeatedly missed Musk's previous timelines for fully autonomous vehicles.

Competitors are moving quickly as well. Companies including Aurora Innovation and Kodiak AI are already testing driverless heavy trucks and hauling commercial freight, while established manufacturers such as Volvo and Daimler Truck have battery-electric trucks on the market.