By Rebecca Elliott
AUSTIN, Texas -- Tesla Chief Executive Elon Musk said the company doesn't expect to begin producing its new electric semitrailer truck in larger volumes until the end of next year, citing battery-supply constraints.
Tesla began delivering its first trucks in December, five years after it revealed the model. The semi, originally due out in 2019, is the first new model Tesla has put in customers hands since early 2020.
Speaking Tuesday at an energy conference in Austin, Texas, Musk didn't elaborate on how he defines higher-volume production. While a niche product for Tesla, Musk has said the semitrailer truck is crucial to accelerating the company's transition to more sustainable energy, noting that heavy trucks account for an outsize share of vehicle emissions.
Musk, on stage before a room of utility executives, also called on the nation's largest energy providers to invest in more power generation, forecasting electricity demand would triple by around 2045 as more drivers turn to electric vehicles.
"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.
His comments come as Tesla is pushing to boost sales of its own EVs and expand access of its Supercharger network to non-Tesla drivers. By 2030, Tesla aims to sell 20 million EVs annually, up from 1.3 million last year.
Automakers more broadly are hurrying to boost battery production as concerns about looming shortages of key materials such as lithium and nickel mount. Many drivers also remain reticent to make the switch to EVs, fretting there won't be enough places to plug in.
Tesla shares have rallied in recent weeks as the company has said it would open some of its fast-charging network to General Motors and Ford Motor customers. The company's stock closed Monday at $249.83, roughly double its value at year-end 2022.
Tesla's network of fast-charging stations, or Superchargers, has long been a selling point for many EV buyers and has given Tesla an advantage over rivals that have largely opted to forgo direct investment into public charging.
Musk, on Tuesday, said Tesla's decision to expand access to its network was "morally right."
"But whether it's financially smart remains to be seen," he added.
Tesla's network, with more than 19,000 fast chargers in the U.S., according to federal data, is the nation's largest fast-charging network and widely regarded as the most reliable. Outside of it, the nation's charging infrastructure is largely a patchwork of different operators and many drivers are challenged to find working equipment.
Opening the charging network could help boost Tesla's charging-business revenue but also increase use of what was long an exclusive network, fueling concerns among Tesla drivers that it could lead to crowding and long wait times.
"It might be actually a competitive disadvantage," Musk said. "But the purpose of Tesla from the beginning has been to accelerate the advent of sustainable energy."
Write to Rebecca Elliott at rebecca.elliott@wsj.com
(END) Dow Jones Newswires
June 13, 2023 14:00 ET (18:00 GMT)
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