Tesla Inc. (NASDAQ: TSLA) plans to produce five Semi electric trucks per week at a new production line near its Gigafactory Nevada plant, Electrek reported Tuesday, citing sources familiar with the matter.
What Happened: Tesla is currently building a low-volume Tesla Semi production line in a new building in the industrial park where the Nevada Gigafactory is located, as per the report. On completion of the production line, Tesla reportedly expect a production capacity of five Semi electric trucks per week.
However, the company is still planning for volume production of the trucks to happen at the Gigafactory in Austin once it is able to ramp up battery cell production there, according to Electrek.
Tesla CEO Elon Musk also confirmed on Twitter that while demand for the Semi was not an issue, the near-term cell supply was making it harder to ramp up production of the trucks. The entrepreneur added that the limitation will be “less onerous next year.”
See Also, Rumor: Tesla’s Cybertruck Could Begin Production In June
Why It Matters: It was reported on Monday that Tesla won a new order for 10 of its Semi trucks and two Megachargers with nearly $2 million in federal government support.
MHX Leasing LLC, a California-based logistics company, was awarded $1.9 million by the Mobile Source Air Pollution Reduction Review Committee for the deployment of 10 Tesla Semi Class 8 semis, and $560,000 for the deployment of two overhead electric cranes, as per Electrek. Megachargers are a new type of charging solution from Tesla, with a capacity of over 1MW.
Tesla first unveiled the all-electric Semi truck in November of 2017. Companies including PepsiCo Inc. (NASDAQ: PEP) and Anheuser-Busck InBev SA (NYSE: BUD) have ordered the Semi trucks from Tesla.
The truck was previously rumored to start production in July and a prototype was spotted on a test track this month. The truck reportedly has multiple prototypes. It has been speculated that Tesla could make up to 2,500 Semis this year.
Price Action: Tesla shares closed about 4% higher on Tuesday at $635.62.
Read Next: Tesla Q1 Deliveries To Beat Street Estimates, Says Wedbush
Photo: Courtesy of Tesla
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