Tesla Inc. says its production plan for its new semi-heavy electric truck remains in low gear because the special battery cells that the large platform needs are missing.
The Silicon Valley carmaker said this week that it plans to deliver “our first Tesla Semi by the end of the year”. Increasing production to meet this target will test Tesla’s TSLA,
ability to scale and deliver on fleet owners’ promises in an industry more focused on cost and performance than the typical Tesla buyer.
“Scaling production is very difficult,” said Chief Executive Elon Musk in a earnings conference call on Wednesday. “So a big part of the reason – the main reason we didn’t accelerate new products is – like, for example, Tesla Semi – is that we just don’t have enough cells for it.”
Unveiled in 2017, the Semi was initially promised to be in the hands of customers in 2019. Its arrival has been delayed for two years, delays that Musk has repeatedly attributed to battery cell supply restrictions.
Musk said Tesla is “extremely confident” in its ability to produce long-range trucks with batteries. The company said the Semi will have a range of up to 500 miles and will use about five times as many battery cells as Tesla passenger cars.
An expanded version of this report appears on WSJ.com.
Also popular on WSJ.com:
The founder of WallStreetBets assesses the legacy amid the stock market frenzy.
Pizza Hut launches ‘Detroit style’ pizza and America says ‘Huh?’