The EV maker currently markets four models but will add a fifth before the end of the year.
It’s a hectic week that is about to end for Elon Musk.
The charismatic and visionary CEO of Tesla (TSLA) – Get Tesla Inc. Report has been on all fronts.
He started the week by causing a big controversy by proposing a peace plan to end the Russian war in Ukraine.
This plan, perceived as pro-Russia, was widely criticized by the Ukrainian authorities and social networks. US senator Lindsey Graham called the plan “dumb.” For pro-Ukraine the Musk plan is a capitulation to Russia since it asks Ukraine to give Moscow regions of the country forcibly annexed by Russia.
The tycoon then put back on the table its $44 billion acquisition offer from Twitter three months after announcing that it was withdrawing it because Twitter had lied to it about spam bots, or fake accounts, on the platform.
Given market conditions, Musk is buying Twitter at an exorbitant price. According to the media, the billionaire sought to negotiate a discount but the social network refused.
Musk, who seems to want to avoid a trial, preferred to capitulate.
December 1st
The two parties who do not trust each other have until October 28 to find an agreement or there would be a trial.
The revival of Twitter’s takeover bid that could prompt Musk to sell additional Tesla shares to fund the deal has cast uncertainty on the automaker as the serial entrepreneur wants to use the social network to build a kind of “Super App” capable of competing with all social networks, Apple (AAPL) – Get Apple Inc. Report, Amazon (AMZNa) – Get Amazon.com Inc. Reportnd Uber (UBER) – Get Uber Technologies Inc. Report.
But Musk has just made an announcement that will reassure investors and Tesla fans. Tesla has started production of its truck, the Semi. The automaker will deliver the first units of this vehicle on December 1 to PepsiCo (PEP) – Get PepsiCo Inc. Report, Musk announced on October 6 on Twitter.
“Excited to announce start of production of Tesla Semi Truck with deliveries to @Pepsi on Dec 1st!” the billionaire announced on Twitter.
He did not give further details, for example on the number of copies that will be delivered to PepsiCo. Musk also did not say what the price of this vehicle was. It is currently not possible to reserve this vehicle.
Tesla and Musk are thus keeping their promise made during the summer. On August 10, the billionaire took the automotive sector by surprise by saying that: “Tesla 500 mile range Semi Truck starts shipping this year.”
First New Vehicle Since 2020
Tesla Semi will enable the firm to enter a lucrative new market at a time when the logistics industry is struggling with rising energy costs and continued supply chain disruptions. Tesla could thus capture a good market share.
The Semi is Tesla’s first new vehicle in more than two years. Indeed, the company has not delivered a new vehicle since the Model Y SUV/crossover, the first units of which were delivered to customers in March 2020.
The Tesla Semi is a 100% electric truck that was unveiled in fall 2017. The automaker promised to start production in 2019, postponed this deadline to 2021, then 2022 and 2023.
Thanks to its battery capacity of 500 kWh, made up of Tesla’s new 4680 cells, its announced consumption is less than 2 kWh/mile, creating a range of 300 to 500 miles depending on the version.
The base price is $150,000 (300-mile range) and $180,000 (500-mile range).
The Semi has competitors: Nikola Motors (NKLA) – Get Nikola Corporation Report is developing three semi-truck models: Tre Bev, Tre Fcev and Two Fcev.
A Lucrative Product
The vehicle is already shaping up to be a potential source of strong revenue for Tesla.
When the company launched the Semi in 2017, it asked interested customers to put down a $5,000 deposit, which the manufacturer then increased to $20,000 for the base version.
This sum is two parts: a $5,000 credit-card payment at the time of reservation on the Tesla website dedicated to the Semi, and then a wire transfer of $15,000 within 10 days of the reservation.
Those who have reserved more than one unit must make a $20,000 wire transfer for each additional vehicle.
For customers interested in the limited Founders Series version, they must make a deposit of $200,000 — the total cost of the truck.
Apart from Pepsico, the automaker has already received orders from many companies, including Walmart (WMT) – Get Walmart Inc. Report and UPS (UPS) – Get United Parcel Service Inc. Report.
