Tesla Semi Delayed to 2022, Cybertruck Production Prioritized

Tesla Semi and Cybertruck Production Updates

Tesla has announced a postponement of its Semi electric truck launch until 2022. This delay is attributed to ongoing challenges within the supply chain and limitations in the availability of battery cells, as detailed in the company’s second-quarter earnings report released on Monday.

Battery Supply Concerns

Elon Musk, CEO of Tesla, has previously highlighted potential constraints related to battery supply. These concerns directly impact the production timeline for the Tesla Semi, initially presented as a prototype in November 2017.

Earlier in January, Musk indicated that the engineering phase of the Semi was finalized, with deliveries anticipated within the current year. However, he also cautioned that battery cell availability could restrict the company’s production capacity.

This earlier prediction has now proven accurate, as evidenced by information contained within the shareholder letter published following the market closure.

Executive Departure and its Impact

The delay coincides with the departure of Jerome Guillen, a key executive instrumental in the development and planned production of the Tesla Semi. Guillen resigned in June.

His resignation occurred shortly after a shift in his role, moving him from president of automotive – a position overseeing the Semi project – to a less influential role focused on heavy-duty trucking. Guillen had previously managed Tesla’s entire automotive operations from September 2018 to March 2021.

Cybertruck Production Timeline

Similarly, the production of the Cybertruck, originally slated for late 2021, is also facing potential delays. Indications suggest a possible shift to a 2022 launch.

Comments made by Musk and Lars Moravy, Tesla VP of engineering, during the earnings call point towards this revised timeline.

Currently, the Cybertruck is undergoing alpha prototyping, with the fundamental engineering and architectural design completed. While the Model Y remains the priority, the company intends to transition to a beta phase for the Cybertruck later this year, according to Moravy.

“Production will be ramped up in Texas following the successful launch of the Model Y,” he stated.

Challenges in Cybertruck Manufacturing

Musk emphasized the inherent difficulties in manufacturing the Cybertruck, potentially managing expectations regarding its 2021 arrival.

“The Cybertruck production ramp will be challenging due to its entirely new architecture,” Musk explained. “It promises to be an exceptional product, possibly our best yet, but it incorporates numerous fundamentally innovative design concepts.”

He reiterated a point he’s made previously regarding the complexities of scaling production:

“Manufacturing, despite seeming straightforward, presents significant hurdles. Creating prototypes or small production runs is relatively simple, but achieving high-volume production – which is the true measure of success – is constrained by the speed of the slowest process among approximately 10,000 unique parts and procedures.”