It's Semi Time, Musk Says, Pushing Tesla's Stock Into the Ionosphere

Tesla’s valuation got a big boost on Wednesday after CNBC published the contents of a company memo. In it, CEO Elon Musk told employees that it’s time to get cracking on the electric semi truck he said would reach customers in 2019.

Could be, especially given the lengthy delay that followed his initial 2017 promise. The timing is even more suspect given this week’s proclamation by a would-be rival.

Tiny Nikola, which aims to build an electric semi truck of its own, as well as an electric pickup with the help of an undisclosed automaker, saw its market cap soar to $26 billion Tuesday just on the strength of that promise alone. Wall Street’s reaction was something we’ve seen with Tesla in the past, and indeed, the following day saw Tesla’s leaked memo do the same. Tesla’s stock rushed past $1,000 a share.

“It’s time to go all out and bring the Tesla Semi to volume production. It’s been in limited production so far, which has allowed us to improve many aspects of the design,” Musk said in the memo. “Production of the battery and powertrain would take place at Giga Nevada, with most of the other work probably occurring in other states.”

Musk confirmed the memo via Twitter, claiming he didn’t yet know where final assembly of the electric class 8 trucks would take place. Nor did he offer a timeline for a market entry.

Back in 2017, after Tesla revealed a semi concept to an unsuspecting public, Musk claimed the vehicle would reach customers in 2019. That date came and went with no ultra-green (and presumably ultra heavy) class 8 truck; at the time, Tesla was trying to get the Model 3 out the door. The Model Y crossover was to follow, lending the impression that Tesla, with only a single U.S. assembly plant to its name, was looking far down the road.

In an April 2020 earnings report, Tesla stated that production and deliveries of its semi truck would be delayed until 2021. With that year now only 6 months away and still no assembly site chosen, it’s probably understandable why Musk failed to provide a timeline. Seems unlike him, to be frank.

Then again, maybe the lack of clarity helped the company’s valuation. All investors heard was what they wanted to hear, and Tesla closed the day with a share price of $1,025.25 — its highest showing ever.

[Image: Tesla]