Image source: Car Scoops
On Thursday, amid the Twitter fiasco, Tesla CEO Elon Musk announced the start of production of the long-awaited Semi truck.
While it may seem like something to be excited about, the Tesla Semi truck will only be delivered to one customer in December: Pepsi.
Statement
In a statement on Friday, Pepsi said the trucks will support the Frito-Lay plant in Modesto, California, and the Pepsi beverage plant in Sacramento.
Discussing the company’s sustainability efforts, PepsiCo spokeswoman Andrea Foote said:
“We are looking forward to this next step in our PepsiCo Positive journey and will provide more details once we have taken delivery.”
However, neither Musk nor Pepsi specified how many trucks would be delivered.
Production
In November 2017, Tesla made its first announcement of the Semi, saying production would begin in 2019.
Many companies have claimed to have made reservations, including Anheuser-Busch, City Furniture, FedEx, J.B. Hunt Transport Services, and Walmart, just to name a few.
For a company like Tesla, production delays will be inevitable.
Cybertruck’s production was announced in 2021, but was subsequently moved to the following year.
Meanwhile, the second-generation Tesla Roadster, announced at the same event as the Semi, will go into production in 2020.
Instead, it was pushed further back, with 2023 being the earliest date.
Read also: Optimus takes its first untethered steps during Tesla’s AI Day last Friday
The Semi
On Thursday, Elon Musk pointed out that the Semi truck would have a range of 500 miles.
The electric trucks are suitable for certain routes.
However, the heavy weight of trucks compared to diesel and fuel cell trucks could force companies to forego heavy loads.
The announcement coincided with news of Musk’s renewed interest in buying Twitter for its initial $44 billion proposal on Tuesday.
Read also: Acquisition dispute between Elon Musk and Twitter ordered to be halted
Tesla stock and Twitter
In September, Musk tried to end the deal, claiming the social media platform violated their agreement.
The Tesla CEO has accused Twitter of misrepresenting the number of spam and fake bot accounts on the platform.
In 2022, Elon Musk sold more than $15 billion worth of Tesla stock, but it’s unclear if he has enough liquid funds to complete the Twitter deal.
Although he has received debt and equity financing commitments, Musk may need to sell additional shares of Tesla to fund the purchase.
His other options include selling SpaceX stock, raising money from other investors, or borrowing against his holdings in Tesla or SpaceX.
Rising interest rates will have made loans to finance the deal more expensive.
Elon Musk’s text messages revealed earlier this year showed requests to raise billions from his wealthy contacts.
Reference:
Tesla set to deliver long-delayed electric trucks to Pepsi in December
