In a notable shift from its traditional focus, Tesla is positioning itself as a leader in robotics and autonomous vehicles, with CEO Elon Musk aiming for an ambitious $20 trillion valuation. However, the company’s recent event in Sparks, Nevada, centered on a more conventional product: the Tesla Semi, an electric vehicle that has been anticipated for nearly a decade.
The Tesla Semi first appeared on the scene in late 2017, and its official high-volume production launch was marked by a private event at Tesla’s factory. The gathering catered to a specific group—managers of large trucking fleets—who were recognized for their orders amid a techno beat. “It’s going to be, really, a driver’s truck. It’s like a sports car in truck form,” Musk said in a pre-recorded message, as he missed his second consecutive vehicle debut to attend a White House dinner with President Xi Jinping of China.
According to Tesla’s vice president of Vehicle Engineering, Lars Moravy, the long-range version of the Semi is expected to travel approximately 500 miles per charge, aligning with the daily range of US long-haul truckers. The standard model is estimated to reach 325 miles per charge. In comparison, other electric vehicle competitors offer ranges between 155 and 430 miles.
Challenges and Market Dynamics
The Tesla Semi is entering a challenging market. In China, nearly 30 percent of heavy-duty truck sales are electrics, but in the US, the adoption has been sluggish. This is due, in part, to the higher upfront costs—two to three times that of diesel trucks—and the need for a widespread network of megawatt chargers capable of charging large batteries in a few hours. Currently, Tesla operates two public chargers in the Los Angeles area, with plans to increase this number to 30 by year-end, according to Dan Priestley, head of Tesla’s Semi program.
The electric truck industry also faces political hurdles. Federal support for electric vehicles was reduced last year, and there is a push to lower fuel economy standards for truck engines, which could have set tougher climate goals. Heavy trucks are responsible for about 7 percent of US greenhouse gas emissions.
Despite these challenges, the market conditions could favor EV makers. US diesel prices have surged due to the ongoing Iran War, which has disrupted oil production and shipping. Musk pointed out that the economic advantage of electricity over diesel makes the Tesla Semi a viable option during these “crazy times.”
Recently, a coalition of shippers, including Microsoft and PepsiCo, ordered 2,500 Tesla Semis, a move that could almost double the number of electric heavy-duty trucks on US roads. Meena Bibra from the Smart Freight Centre explained that the decision was based on “assessing price, performance, production capability, and service support.” Even so, buyers might still opt for electric trucks from other manufacturers like Kenworth, Ride, and Volvo if those options better suit their needs.
The demand from multiple carriers helped lower the prices of the electric trucks, the group reported. However, Tesla’s Full Self-Driving feature, promised in the future, is not yet available for the Semi. Enhanced Autopilot was mentioned during the initial rollout in 2017, but its successor technology is still pending release.
Original Story at www.wired.com