Tesla unveils electric truck amid 'hell' of making cheaper car

The prototype of an electric big-rig truck, dubbed the Tesla Semi, was unveiled on Thursday. Chief executive Elon Musk says the truck can go up to 800km at maximum weight at highway speed.
The prototype of an electric big-rig truck, dubbed the Tesla Semi, was unveiled on Thursday. Chief executive Elon Musk says the truck can go up to 800km at maximum weight at highway speed.PHOTO: REUTERS

Electric carmaker ventures into new market even as factory for Model 3 guzzles up cash

HAWTHORNE • Tesla has unveiled a prototype electric big-rig truck that it will start producing in 2019, throwing itself into a new market even as it struggles to roll out an affordable sedan on which the company's future depends.

Chief executive Elon Musk on Thursday unveiled the big rig, dubbed the Tesla Semi, by riding the truck into an airport hangar near Los Angeles in front of an invited crowd of what Tesla said were potential truck buyers and Tesla car owners.

Mr Musk has described electric trucks as Tesla's next effort to move the economy away from fossil fuels through projects, including electric cars, solar roofs and power storage.

Some analysts fear that the truck will be an expensive distraction for Tesla, which is burning cash, has never posted an annual profit and is in self-described "manufacturing hell" starting up production of the US$35,000 (S$47,446) Model 3 sedan.

Mr Musk did not give a price for the truck.

Tesla also has to convince the trucking community that it can build an affordable electric big rig with the range and cargo capacity to compete with relatively low-cost, time-tested diesel trucks. The heavy batteries eat into the weight of cargo an electric truck can haul.

The truck can go up to 800km at maximum weight at highway speed, Mr Musk said.

Some analysts fear that the truck will be an expensive distraction for Tesla, which is burning cash, has never posted an annual profit, and is in self-described "manufacturing hell" starting up production of the US$35,000 (S$47,446) Model 3 sedan.

Diesel trucks are capable of travelling up to 1,600km on a single tank of fuel. Mr Musk said diesel trucks were 20 per cent more expensive per mile to operate than his electric truck.

"I can drive this thing and I have no idea how to drive a semi," he joked.

The truck has Tesla's latest semi-autonomous driving system, designed to keep a vehicle in its lane without drifting, change lanes on command, and transition from one freeway to another with no human intervention.

Reuters reported in August that Tesla was discussing self-driving trucks with regulators in Nevada and California, but the company did not mention full autonomy in a release on the new vehicle.

Tesla faces a much more crowded field for electric trucks than it did when it introduced its electric cars.

Manufacturers such as Daimler, Navistar International and Volkswagen are joining a host of start-ups racing to overcome the challenges of substituting batteries for diesel engines as regulators crack down on carbon dioxide and soot pollution.

Tesla would need to invest substantially to create a factory for those trucks.

The company is currently spending about US$1 billion per quarter, largely to set up the Model 3 factory, and is contemplating a factory in China to build cars.

Charging and maintaining electric trucks that criss-cross the country could be expensive and complex. Tesla said the truck can be charged for 30 minutes and then travel 644km.

Shares in Tesla have risen 46 per cent this year to make the company the No. 2 US automaker by market value.

REUTERS

A version of this article appeared in the print edition of The Straits Times on November 18, 2017, with the headline 'Tesla unveils electric truck amid 'hell' of making cheaper car'. Print Edition | Subscribe