Tesla said its long-awaited Class 8 truck, the Tesla Semi, will begin volume production later this year, a milestone CEO Elon Musk framed as part of a broader manufacturing and AI investment cycle.
Speaking during Tesla’s Q1 earnings call, Musk said the company will “begin production of our semi-truck soon,” cautioning that output will ramp slowly at first before accelerating later in the year and into 2027.
The company reiterated in its shareholder update that both the Tesla Semi and its Cybercab robotaxi platform are “on schedule for volume production starting in 2026,” as Tesla expands manufacturing capacity and supply chains to support new products.
Austin, Texas-based Tesla (NASDAQ: TSLA) released its first-quarter earnings Wednesday and held a conference call with analysts after the market closed.
Financials beat on revenue growth, margins improve
Tesla reported Q1 revenue of $22.4 billion, up 16% year over year, driven by higher vehicle deliveries, stronger services revenue and improved pricing.
- Net income (GAAP): $477 million
- Operating income: $941 million
- Free cash flow: $1.4 billion
Operating margin came in at 4.2%, while adjusted EBITDA reached $3.7 billion, reflecting continued investment in AI, robotics and manufacturing capacity.
Tesla said profitability was boosted by higher vehicle pricing, lower material costs and growth in software-related revenue such as Full Self-Driving (FSD), though partially offset by rising operating expenses tied to AI development and new product launches.
Semi production tied to supply chain buildout
Tesla has been preparing its Nevada facility for Semi production while expanding battery, cathode and lithium supply chains—areas executives repeatedly flagged as critical constraints.
Musk emphasized that new products like the Semi will follow a typical “S-curve” ramp, with early production limited by supply chain complexity before scaling rapidly.
The company also highlighted deployment of Megachargers and heavy-duty charging infrastructure alongside the Semi rollout, signaling a broader push into commercial freight electrification.
Bigger bet on AI, autonomy and robotics
Beyond trucking, Tesla is doubling down on AI-driven revenue streams, including robotaxis and humanoid robots (Optimus), while expanding its training compute and chip design capabilities.
The company launched unsupervised robotaxi rides in Dallas and Houston in April and continues to scale its autonomous fleet, though executives said meaningful revenue contribution is more likely in 2027.
Tesla expects capital expenditures to surge to support six factories, AI infrastructure and new product lines, positioning the company for what Musk described as a “very significant increase in future revenue.”
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