Tesla (NASDAQ:TSLA) CEO Elon Musk revealed Tuesday that the electric vehicle giant production of its Class 8 EV semi-truck would be scaled back, citing concerns about supply chain issues. Musk explained, at an energy conference in Austin, Texas, that due to limitations in battery supply, Tesla's plan to increase production of its electric semi will be postponed until late 2024. The first trucks were delivered in December 2022, five years after the model was originally launched.
Musk previously said the Tesla Semi would reach an annual production of 50,000 units starting in 2024. Speaking on the Q3 2022 earnings call in October 2022, the billionaire said it would take about a year to ramp up Semi production. About a year from October 2022 would indicate late 2023-early 2024 as the start of the production ramp.
"So, we're tentatively aiming for 50,000 units in 2024 for Tesla Semi in North America. And obviously, we'll expand beyond North America," Musk said.
The CEO reaffirmed his devotion to EV trucks. He said that heavy trucks account for a significant share of vehicle emissions and thus the company plans to look at more sustainable energy options. Additionally, the CEO predicted a threefold increase in electricity demand by approximately 2045, as an increasing number of drivers opt for EVs, underscoring the need for sustainable transportation solutions.
"The future is not like the past. The future is a massive increase in electricity demand, and it's going to take everything that we've got to just keep up with it," Musk said.
Tesla currently manufactures the semi using a pilot production line located at Gigafactory Nevada. In mid-November 2022, the electric vehicle maker said it was targeting a production of 100 semis that year; a production target that equates to approximately 16 trucks per week.
Shares of TSLA are down 0.66% in early trading on Wednesday.