Tesla, which is just getting back into the swing of things by building cars at its massive plant in Fremont, is reportedly about to ramp up production of the largest vehicle in its catalog, the Tesla Semi truck.
Tesla Chief Executive Elon Musk said in an email to employees that now is the "time to go all out and bring the Tesla Semi to volume production," according to Reuters, which said it had obtained a copy of Musk's note. Musk said Tesla would build batteries and powertrains for the Semi at its Gigafactory in Nevada, with the rest of the truck's components being built elsewhere in the United States.
Musk didn't say where in the U.S. Tesla would build the remainder of the Semi. In addition to its factories in Fremont and Nevada, Tesla has a plant in Buffalo, N.Y., where it builds batteries and solar panel products. The company is also scouting sites in the U.S. for its next domestic Gigafactory, with Texas and Oklahoma reportedly on the short list of locations for the plant.
Tesla spokespeople didn't return a request for comment about the company's semi truck plans. Tesla introduced the truck in 2017, but has produced only a small number of the vehicles. In April, Tesla said it would halt production on the Semi until 2021.
"The Semi production news is another shot in the arm (for Tesla)," said Dan Ives, managing director of Wedbush Securities. "This semi truck market was the missing piece in the puzzle for the (company's) 2021 growth story."
Investors used the report about Tesla's semi truck plans as an impetus to get behind the company's stock on Wall Street, and sent Tesla's shares up by more than 8%, to as high as $1,019.86. It was the first time Tesla's stock price had ever climbed above $1,000 a share. Ives said the company's share gains show "the confidence the Street has in Musk and company over the next year to further penetrate the massive electric vehicle opportunity despite COVID-19 headwinds."
