• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Tesla Semi Skepticism Lingers Months After Musk’s First Delivery

Tesla Semi Skepticism Lingers Months After Musk’s First Delivery

TESLA SEMI TRUCK-Bloomberg.jpg
A worker cleans a Tesla Semi electric truck parked outside the Frito-Lay manufacturing facility in Modesto, California, US, on Wednesday, Jan. 18, 2023. PepsiCo...s Frito-Lay is replacing its diesel-powered freight equipment with zero-emission trucks, solar panels and energy-storage systems at it's Modesto plant. Photographer: Benjamin Fanjoy/Bloomberg
February 10, 2023
Bloomberg

Elon Musk has long relished trolling those who’ve doubted him and Tesla. In 2018, he vowed to send “short shorts” to hedge fund manager David Einhorn, who’d been betting against Tesla’s stock. A couple years later, the company actually listed satin trunks as a gag gift for sale on its website.

Musk heard “various forms of ‘you’re a fraud,’” he told the crowd at Tesla’s Model Y unveiling in 2019. His defiant retort: “You can drive that fraud!”

The Tesla chief executive officer’s latest reveling had to do with the Semi, the heavy-duty truck that took five years to go from prototype to production. “Some people have said this was impossible,” Musk said during a Semi manufacturing event in Nevada in January. “But, uh, you can drive it.”

The reasons for this proverbial victory lap were clear. Weeks earlier, Tesla handed off its first Semis to PepsiCo, which took delivery of 15 of the big rigs for its massive Frito-Lay facility in Modesto, California. The purpose of the late January event in Nevada was to announce a $3.6 billion investment to expand the use of Tesla’s existing factory near Reno to build more battery cells, as well as Semi trucks.

While those were causes for celebration — something Musk can afford to do again, the way Tesla shares have soared this year — there’s still a lot of uncertainty as to just how meaningful the Semi will be to Tesla’s business. I had a lot of questions for the company when I drove out to Modesto to see the trucks in person in January. While I was able to climb into the Semi’s spacious cab and its centered driver’s seat, test drives were off limits.

Tesla staffers on site didn't comment. PepsiCo representatives confirmed they’d taken delivery of all 15 trucks ordered as part of a $30.8 million project I wrote about in November — the one for which California’s Air Resources Board picked up half the check — but had little else to share about the product.

It remains unclear how much the Semi costs, or whether any other customers who ordered trucks from Tesla a half decade ago have managed to get their hands on them. Tesla didn’t mention the model in its quarterly production and deliveries release in January, then referred to the Semi being in pilot production in its earnings deck. While Musk offered an update during the earnings call on when he expects Tesla to be making Cybertrucks in volume — not until next year — he didn’t have anything to say about the Semi.

Sightings of Semis on the side of the road in Sacramento and getting towed from a Nevada highway have lit up the message boards and social media networks where pro- and anti-Tesla flame wars have been fought for years.

Even before those incidents, there were still vestiges of doubt about the Semi that Musk had yet to vanquish. Analysts at RBC Capital Markets who have the equivalent of a buy rating on Tesla stock cautioned in December that the CEO may be getting ahead of himself in aiming to make 50,000 trucks in 2024. RBC was modeling for more like 4,000.

This much is for certain: there’s an urgent need for Tesla and other manufacturers to electrify big trucks. The city of Modesto has long struggled with poor air quality and high asthma rates. PepsiCo’s Frito-Lay facility spans 500,000 square feet, and the food giant’s ambition is for it to be a showcase in sustainable manufacturing, warehousing and distribution.

We should hear more about how Tesla plans to help companies like PepsiCo and cities beyond Modesto decarbonize on March 1. Musk has said the master plan he’ll deliver will chart “the path to a fully sustainable energy future for Earth.”

    RELATED CONTENT

    RELATED VIDEOS

    Technology Automotive High-Tech/Electronics
    • Related Articles

      Most Supply Chains Are Not Ready for Due Diligence Compliance

    Bloomberg

    Biden Called to Intervene as Labor Dispute Disrupts West Coast Ports

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Popular Stories

    • A CONTAINER SHIP PLIES THE OCEAN, SILHOUETTED BY DRAMATIC CLOUDS

      Flurry of FMC Complaints Reveals Widespread Accusations of Ocean Carrier Profiteering

      Ocean Transportation
    • A CITY SCENE AT NIGHT, WITH MANY LINES OF LIGHT RISING FROM THE GROUND

      Welcome to the World of ‘Ambient’ IoT

      Data Management (Big Data/IoT/Blockchain)
    • A WOMAN'S HANDS ARE HOLDING A PILE OF SOIL ABOVE THE GROUND WITH A SMALL PLANT GROWING OUT OF IT.

      Three Developments in ESG That Will Impact Supply Chains 2023

      Regulation & Compliance
    • A GRAPHIC SHOWING AN AERIAL VIEW OF A FOREST WITH THE SHAPE OF A TRUCK CUT OUT IN SPACES

      Seven Ways That Companies Can Make Real Progress Toward Sustainability

      Quality & Metrics
    • A LARGE WHITE WALMART TRACTOR TRAILER IS DRIVING ON A FREEWAY BEHIND A PICK-UP TRUCK ONE LANE OVER.

      Walmart Unveils New Sustainability and Waste Reduction Measures

      Supply Chain Planning & Optimization

    Digital Edition

    Scb may 2023 lg

    2023 Supply Chain ESG Guide

    VIEW THE LATEST ISSUE

    Case Studies

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

    • Convenience Store Client Maximizes Profit and Improves Customer Service

    • A Digitally Native Footwear Brand Finds Rapid Fulfillment

    Visit Our Sponsors

    Antuit Zebra Anvyl Brother
    Cleo Data Capture E2open
    Eva Air Enveyo GAINSystems
    Generix Geodis GEP
    GreyOrange Here Holman Logistics
    Infor Inmar Kinaxis
    Locus Robotics Logility LogistiVIEW
    Lucas Systems MCA Connect MPO
    Old Dominion OneRail Overhaul
    PartnerLinQ (Visionet) Port of Virginia Ryder E-commerce by Whiplash
    Saddle Creek Logistics SAP Shyft
    Sourcemap Tecsys TGW Systems
    Verusen Workshop
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Your Subscription
      • Newsletters
    • Resources
      • Events Calendar
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing