TLDR
- Tesla began high-volume production of its Semi electric truck at a new Nevada factory built for up to 50,000 units a year.
- A new freight coalition called ZET SCALE picked Tesla to lead a 2,500-truck order, with PACCAR, Volvo and RIDE also supplying vehicles.
- Other recent orders include 500 trucks from Einride and 370 from WattEV, showing growing commercial interest.
- TSLA stock is down about 16% year-to-date, and the average analyst price target implies roughly 3% upside.
- Tesla faces new competition from BYD’s ETT 44 electric truck in Europe, where the Semi launches next year.
Tesla stock sits near $378 after a rough year for the electric vehicle maker, down about 16% since January. The drop comes even as the company hits a real production milestone with its Semi truck.
Tesla officially started high-volume Semi production this week at its new factory in Sparks, Nevada. CEO Elon Musk announced the news in a prerecorded message tied to the plant’s formal opening on September 24.
The Nevada facility sits next to Tesla’s 4680 battery cell lines at Gigafactory Nevada. It spans 1.7 million square feet and is designed to eventually produce up to 50,000 Semis a year.
Semi is here
Today, we're launching high volume production pic.twitter.com/QQjYDmcPsf
— Tesla Semi (@tesla_semi) September 25, 2026
Tesla first unveiled the Semi back in 2017. Limited deliveries began in 2022, but a full production ramp kept getting pushed back due to supply chain issues and battery constraints.
Deliveries to customers are set to begin this week. Tesla has not said what its current production rate actually is.
A Record Order From a New Coalition
A newly formed freight group called ZET SCALE has chosen Tesla to lead a 2,500-truck order of electric Class 8 vehicles. The deal would roughly double the number of battery-electric heavy trucks currently on U.S. roads.
Tesla leads the order but will not fill it alone. PACCAR’s Kenworth brand, RIDE and Volvo Group’s Volvo unit are also named suppliers for the coalition.
Deliveries will roll out over several years to 10 regional hubs, including Los Angeles, Houston, Chicago, Atlanta and the New York area. Even split across suppliers, Tesla’s portion should top its previous largest Semi orders.
Those earlier deals include 500 trucks from Swedish freight tech company Einride in August and 370 from WattEV in May. PepsiCo and Microsoft are also part of a separate 2,500-truck order placed this week through transportation group Catalyst Mobility.
PepsiCo was one of Tesla’s first Semi customers and already runs the trucks in its fleet. DHL and US Foods are also current customers.
Competition Builds Overseas
Tesla’s pitch centers on lower running costs. Musk said electricity costs less per mile than diesel, which is the main factor fleet operators weigh when switching vehicle types.
The long-range Semi travels up to 500 miles on a full charge, while the standard version covers 325 miles. Tesla also plans to add its autonomous-driving software to the Semi down the road.
But Tesla will not have the electric trucking market to itself in Europe. At the IAA Transportation show, BYD unveiled the ETT 44, a 44-tonne electric tractor with up to 1,000 horsepower and about 372 miles of range.
Tesla plans to bring the Semi to Europe next year, but only the standard-range version at first. That could put Tesla behind on range compared to BYD’s offering there.
On the financial side, Tesla’s automotive gross margin excluding regulatory credits fell to 16.3% last quarter. Energy storage margins dropped sharply too, falling to 20.4% from 39.5% a year earlier.
TSLA carries a Moderate Buy consensus rating on TipRanks, based on 11 Buy, 12 Hold and two Sell ratings. The average price target of $388.85 implies about 3% upside from current levels
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