Tesla Semi offers superior economics over diesel trucks through lower fuel and maintenance costs, driving industry disruption and strong commercial adoption.

It's been a long and arduous road, but the Tesla Semi truck has finally arrived on the market. For those who have n't followed Tesla news closely over the past decade, you may not know that they first revealed their initial truck design in 2017.

This means that this massive innovation took most of the past decade to reach the markets.

But now that people can get their hands on a Tesla Semi truck, the game has changed. The Tesla Semi truck is coming to change the face of the entire industry.

Surprisingly, there is a lot of coverage of this , not only in the financial media, but also in some popular podcasts.

Elon Musk posts a video in which he says: "Hello, look at the newest Semi truck." Nine years ago, he said this would happen. And here she is, finally. "You have to see what it looks like."

Welcome to the Tesla Semi event. We're incredibly excited to begin production of the Tesla Semi , and this is going to be a truly revolutionary truck, capable of carrying the heaviest payloads over very long distances, with easy recharging thanks to a massive megawatt charger.

This is going to be an exceptional truck, and it's also going to be a great truck for drivers. Drivers are going to love driving this truck because it has incredible acceleration.

It's almost like a sports car in a truck body. So, it's going to be the most fun truck to drive.

In the very near future, we're going to add self-driving features. These features are going to be critical for safety. So, if someone is on a long journey, they can activate Tesla's self-driving capabilities and greatly improve the safety and comfort of the ride .

This way, the driver arrives at their destination still feeling refreshed.

So, this truck is going to be a real game-changer, and it's also going to make great economic sense because the cost of electricity per mile is much lower than the cost of diesel, especially in these challenging times.

So, I think this is going to be something A success on every level. As you know, I recommend placing more orders if you haven't already . But the waiting list is already long, and this is going to be a truly revolutionary product for heavy-duty shipping.

The Tesla Semi, from a business perspective, is a no-brainer. The ongoing running costs are a fraction of the cost of a diesel truck. This is very important.

If you are a business owner, own a fleet of trucks, or are an independent driver/ owner, unless you're a lunatic , you will want to replace your diesel trucks with Tesla Semi electric trucks. This is very important to understand.

I'm no trucking expert, but I researched this in great detail when Tesla first announced the Semi.

Electric vehicles, including the Tesla Semi, have far fewer moving parts than conventional diesel trucks with internal combustion engines. This means fewer parts that are prone to wear and tear , breakage, or need replacing and repair.

Significantly lower repair and maintenance costs . Then, the extremely low cost of energy—fuel, but in this case, we're talking about electricity versus diesel.

The bottom line is that Tesla Semi trucks will pay for themselves in just a few years. Tesla Semi trucks will sell for themselves. When I say it's a no-brainer, I mean it literally. Unless you're completely out of your mind .

If you're a company or individual in the shipping industry, one look at the ongoing cost of ownership to realize that it makes no sense in a world where you can buy, operate, and drive Tesla Semi trucks and not replace them. Diesel trucks are at it immediately.

These are estimates of the cost of ownership over 10 years. A diesel truck at moderate fuel prices versus a diesel truck at $6.50 per gallon, which is the current price, versus a Tesla Semi.

One assumption here is some major repairs for diesel trucks once during that period , and for the Tesla Semi, there's the assumption of a battery pack replacement, which might not be necessary, but adds a cost of $120,000 over 10 years.

However, the bottom line here is , look at this. The Tesla Semi is $750,000 without a battery pack replacement and $ 870,000 with one, versus the diesel truck. Even with moderate fuel prices , that's $1.105 million , or with current diesel prices, $1.485 million, which is roughly $1.5 million.

The Tesla Semi costs about half that. Over the course of 10 years.

So, I repeat, are you crazy? If you're not, replace your diesel trucks with Tesla Semi trucks ASAP. A Tesla truck can go up to 500 miles fully loaded, okay? It uses about 1.7 kilowatts per mile and recovers roughly 60% of its range in 30 minutes of charging.

So, the big fleet operators are the most excited about this. You've got Walmart, DHL, PepsiCo, and some of those companies. A freight consortium recently selected Tesla as a primary supplier for an order— ready?—and they ordered 2,500 Series 8 electric trucks. 2,500 trucks they ordered.

DHL's reaction is particularly significant because they've already tested them. So , they're the ones who are really excited about this. Fleet finance directors, when diesel is expensive, sit there saying, "Are you kidding me?"

"I'm paying ," Axios reported, citing a Tesla comparison, "because diesel fuel recently cost about 80 cents per mile compared to 20-30 cents per mile for electric.

So, these people, the financial managers, are excited. The drivers who have actually driven them are sitting and saying, 'Does that mean I can take a nap, relax, and watch a movie while this truck drives itself?'" "Yes.

Now, the question is, who's worried? Tom, I'll ask you that . Trucking station operators . That's scary. Trucking station operators and freight infrastructure companies. Think about where you're going .

That's a business in itself, isn't it? So, they're worried about what's going to happen to them.

Small freight companies. Big companies can build their own charging stations . Pepsi can say, 'We're going to install chargers at our distribution center .' Small freight companies can't do that. They don't have that kind of resources.

And long-haul operators. 500 miles seems like a huge distance until you compare it to diesel. A Series 8 diesel truck can often go well over a thousand miles between fill-ups. So, 500 miles isn't as long as you think.

But, here's the thing. How many bladders on the planet can last more than 500 miles of continuous driving without needing a break? Almost zero. Now, someone's going to interrupt me and say, 'Hey, don't you know you can pee in a bottle , buddy?'"

Ha, I've trapped you, haven't I ? "Ah, yes, but you forgot something else. How many truck drivers are legally allowed to drive for more than a certain number of hours without taking a mandatory break of a certain number of minutes?

Ah, you didn't think of that, did you, you idiot ?

The point is, a 500- mile range is more than enough for more than 80 to 90 percent of usage scenarios. And the speed at which Tesla's superchargers can add range to a vehicle means you really don't need to worry about: 'Oh, no, it only goes 500 miles on one charge.'

What should I do? "The bottom line is, this isn't a problem. 500 miles is more than enough. Compared to others.

Now , of course, the comfort— instead of just relaxing and taking a nap, you can make up for a lot of time there. That's some of the exciting stuff in this business .

I like the fact that he said he was going to do this and he actually did it. Of course, anything big you try to do in your life is going to be ten times harder than you think, and it's going to take ten times as long as you expected.

Well, I think this is a game-changer. And it's also an opportunity. If you were in the trucking business and this was going to be your truck and you had foresight, you'd say, 'Look, I have to partner with others.'

Smaller truck owners are going to have to partner with larger companies, and that's going to lead to some mergers and consolidations.

$550 diesel is putting economic pressure on the market. So, I think this is coming at just the right time , you know, for Elon to bring this product on. He's bringing it on at the right time .

But yeah, look at this. From $6 to $10 , that's a 66% increase. By the way, One user wrote in a "Super Chat" message: "Nobody wants electric cars or a vote for this junk. This is Lance Dooley."

Gasoline and diesel are the best. "Well, Lance , with all due respect, you can say that, but the market is talking.

PBD confronted him with the facts and shut him up. The market, for example, the big companies that are buying these trucks, like Walmart, PepsiCo , FedEx, companies that are putting their money on the line, placing actual commercial orders, seem to be going against your opinion.

Good job by PBD. This is quite funny. And again, this is my broader point. These are n't vehicles that consumers are buying to fill a gap or to tell the world that they're a certain type of person who drives this type of vehicle because they've been brainwashed by advertising to think so.

These are business decisions made by people whose job it is to save or make money for their companies.

The market is talking, and it's shouting very loudly that Tesla Semi trucks make very good financial sense. The market is placing orders for thousands of these vehicles." Electric. They tell you they want it.

Now, whether it works or not, we'll find out in 6, 12, or 24 months. But the fact is, he said he's going to do it; and if you're going to invest in this, knowing that it will eventually happen, you'd better believe that there's a market for it.

No one launches a product, and by the way, this product might fail. It might not work , but the market has been excited about it for a while. So, we'll see what happens.

Yeah, look, Tom said the magic word, and that's "disruption." And there's disruption happening in a lot of different industries. This could be the biggest one.

I see Waymos driving around without drivers. And now, Elon is offering trucks that can basically drive themselves. Disruption is coming, like in Game of Thrones, they say, 'Winter is coming.'

Winter is coming for the trucking industry and the driving industry.

So, whether you're driving, or working in any vehicles, or any kind of transportation, or any kind of shipping, don't get too cocky . I know Pat has been critical of people who've become too cocky and comfortable around debates and elections.

Don't get cocky if you're in the driving business. I'm telling you now, disruption is coming.

And there, amazingly, Adam is absolutely right, and I totally agree with every single thing he said . I think there are 4 million professional drivers, 2 million of whom drive big trucks, and 2 million who drive..."

Other types of vehicles. You might not have a job much longer than that. That's what I mean.

Because in addition to trucks and electric cars and everything, SpaceX's Starship rocket successfully reached orbit, deploying third-generation Starlink satellites for the first time, making it the first official profitable Starship flight .

And that's a big deal for him . So, Pat, besides the cars, and besides this , and besides Neuralink, he's been launching satellites for about an hour . Look at that. Boom.

I love the P. Peter P. podcast, and the well-deserved respect they have for Musk and what he's doing. It's nice to see that.

Okay. I saw this on Freightwaves today. I'm guessing it's some kind of truck-building podcast, and it's discussing the Tesla Semi. The title really caught my eye . Driving a Tesla Semi is like a dream.

And it seems These are the impressions of a seasoned truck driver after driving a Tesla Semi.

I think it was Yoda who said, "Do or don't." "There's no trying." I haven't seen this yet. It's a fairly long clip, but hopefully we'll hear from an actual truck driver, probably with decades of experience , about his take on the Tesla Semi.

I think the title "Driving a Tesla Semi Like a Dream" might tell the story.

Speaking of recurring themes, nothing has been more recurring since 2017 when Elon Musk went on stage and promised us the Tesla Semi, and that he'd have over 200,000 Tesla Semi trucks by 2022.

We haven't reached that point . We're not even close, but we're making progress.

No one should bet against Elon Musk's long-term predictions. Perhaps it's the timing of when he expects things to happen. As a founder, I can appreciate that. You tell yourself, "We're going to do this," and then you realize that reality sort of pushes through.

Speaking of his experience, the person who was cynical or Very skeptical, depending on your perspective, about the Tesla electric truck is our colleague Adam Wingfield. He got the chance to drive it for the first time.

For those of you ... oh, that's going to be awesome. I don't know if Adam is the veteran trucker we're talking about, but we just heard that's been set up for him. This guy was very skeptical and now he's had the chance to experience the Tesla Semi himself.

Who doesn't know, Adam has a Commercial Driver's License (CDL), he's been a long-haul truck driver, he's worked for Schneider and other companies, he has an appreciation for what drivers go through.

Adam, you've driven the Tesla Semi, tell us about the experience.

Yes, I've had the chance to do it both ways. I drove it initially as a standalone truck unit because I really wanted to

Well, there are two sides to this. The thing I loved when we visited the facility was that they had kept the first-generation Tesla Semi, so you can actually see what the first generation was like.

And what you're seeing on your screen now is the final, actual version. They've had the opportunity to test both models, and they've made significant changes compared to the first generation.

When we looked at the first generation and had the chance to see that, the next thing that really impressed me was their 1.7 million square meter facility." Square foot, capable of producing 1,000 trucks a week, and that's their next goal.

It's full of automation and robots. They're really capable of scaling up that production very quickly. But let me tell you something. I'll tell you this. I think they hit the nail on the head with all the changes they've made to that truck from the first generation to what it is now.

And I'm sure we'll see even more when it's applied more broadly . They've taken the feedback they got from their early customers, you know.

And by the way, Adam seems very impressed. This guy's never ridden in an electric car before , so you can guess . He was initially very skeptical, and by his own admission, negative about the Tesla truck.

But regarding his point about the first generation of the Tesla truck, for those who know, Tesla actually produced and delivered them to a number of commercial customers. I think PepsiCo was one of them, and Walmart another.

Some of the first generations of the Tesla truck to work with them on improving the product. And now they've reached a point where they've incorporated customer feedback after actual use in real-world situations and commercial operation.

And Adam points out Until they improved the product tremendously. From Pepsi and those who were giving them instant feedback. And they implemented a lot of those things, and what I'll also tell you, Craig, is that I truly believe the Tesla truck is going to change the course of this industry.

Was sitting in the middle a bit odd, Adam ? At first, it was. At first, it was, and that was one of the... well. I think someone interrupted him, but he was just saying that the Tesla truck is going to change the industry.

Mark my words. My brother is clearly impressed, and he's right . To remind you what we're watching now, this is " Freight Waves Today," which appears to be a freight and transportation podcast.

We hear from a former truck driver, who was very negative and skeptical about electric trucks (period), and who just made this statement after sharing why he was blown away by the acceleration and everything, that this particular product, not electric trucks, is going to change the entire industry.

Not only that , but he was confident enough to say, "Mark my words ." Despite his apparent calmness, Adam is completely impressed after trying the Tesla truck himself.

The things I didn't like were what I saw online. But when I sat inside and drove a mile or two, and after a few miles, I thought to myself, you know what, it's not that bad. There are cameras everywhere.

So, what you're seeing now are some of the cameras I managed to adjust . But there are cameras everywhere. So, there aren't those blind spots I'm used to. And yes, I'm using my cell phone while driving here.

Sorry. Oh, I was hoping you'd say it's Meta glasses or something and that you're not wearing Meta glasses. Yeah. Oh, we can see your cell phone in the shot though. Come on, man.

Sorry, but you get the point. But yes , the center view really made me feel like I was in the cockpit of a machine. It's something you have to get used to, of course, because you're not steered left or right .

But I'll tell you where I really tested that center view setting: when I was reversing the trailer. And I thought to myself, you know? Reversing the trailer is going to be really weird from the middle.

But it was super easy with the cameras. I mean, it was like driving a diesel truck from the other side. Pretty cool. What other changes did you mention between the original and this model?

What other changes did you notice that you liked or maybe did n't like? One thing is that it didn't have a window. So the two side windows don't open and close. It's kind of weird to say, but they don't .

So what they did was add a small window to them. That way, you could stick a bill of lading out of the window for a security check or maybe to scan an ID card or something . So they took that away .

They made those changes. They also made some changes inside the screens and the information on the screen. The one thing they believe in is that they think the best part is having no part.

So there are only three buttons in the whole truck. So when you look at your screen, I mean what you're looking at right now, you see two screens and that's it . You have three buttons and that's it.

So they took away a lot of things that could go wrong and that could break. Obviously, maintenance is one of the biggest things. The truck can go 250,000 miles before any of the oil needs changing.

They went from three oils in the original model. They had axle oil, regular engine oil , and some other oils. They made it just one. It also does n't have any belts or hoses or things like that could break and fail during travel.

So I have to give Adam credit here. He obviously had deep discussions and ongoing communication with Tesla, with the engineers and those responsible for manufacturing and design, to truly understand the product, not just in terms of user experience, but also in terms of what it includes .

The fact that he understands Tesla's philosophy, which is "the best part is no part," and in this case, the best oil is no oil, or one oil instead of three. He really has a good grasp of the concept .

And again, going back to my earlier points about maintenance, these things might not seem obvious. In fact, they are n't entirely clear, but if there are no belts to break, and if there's no part to begin with, then that part can't wear out or break, and it doesn't need replacing.

Or repairs, right? And electric vehicles in general don't just have slightly fewer parts than internal combustion engines or diesel vehicles. They have a very small fraction of those parts.

So, the ongoing repair and maintenance costs alone, aside from fuel, will be significantly lower for a Tesla Semi truck. The fact that Adam realizes this is truly impressive. They really, really focus on minimizing the number of parts in the truck compared to conventional models.

And because they minimize the number of parts , these trucks can run indefinitely without the usual maintenance you typically see. Then, you don't have a differential. So, when torque is applied, you don't experience what I call " tractor head lift," because you don't have a differential connected to the rear axles that creates torque to lift the front of the tractor or anything like that .

It's 100% seamless. It's truly a dream to drive, and I encourage anyone who was skeptical like me, before even considering it, to give it a proper try and experience it first before judging, because I really... yes, your opinion has completely changed.

I'm a true believer now. Now. Was there...is there still ...where do your remaining doubts lie ? Do you still have some reservations? Your only doubts still relate to range, don't you ?

So, when I spoke to the actual developer and person in charge of Tesla Semi and said to him, " Man, we're talking about long-range applications." "This truck won't perform well in those ranges."

He replied, "Okay, I'll tell you." When you increase the range, you increase the weight. "When you increase the weight, you reduce the payload and the overall capabilities of the truck."

They feel that a 500- mile range is the ideal point. I feel this will change the industry's view of the trucking sector in the long run. We may no longer need drivers for long-distance journeys of up to 1,000 miles.

Part of this is probably due to what Aurora is doing in the field of automation. You automate long-distance routes, and then we shorten those 500-mile routes for drivers. So, I think this will change the perception of the industry, and I'm really excited to see this progress.

Yes, absolutely. And as the infrastructure improves over time, which is something they mentioned at the Tesla event, they already have plans and partnerships with companies like Pilot Flying G to install more charging stations across the country.

As these things expand, yes, diesel will still be king

Even if the electric vehicle only has a range of 500 miles. Tesla's Full Self-Driving system doesn't get tired, it doesn't need rest periods, it does n't need to sleep. So, literally, you'll be miles ahead, even if you don't have a 1,000-mile range.

You might have to stop two or three more times to charge, but you can practically be on the road 24 hours a day, excluding charging times. You'll be unrivaled .

Drivers really want to drive the truck; those who have tried the Tesla Semi or heard about it want to drive it. The actual perspective is what makes the Tesla Semi different to me, because now, and back then , there are a lot of things that go into the actual architecture of the driver experience in the Tesla Semi .

So, being at the facility, talking to the people on the production lines, talking to the engineers, made me realize that they want to make this truck a driver-centric piece of equipment , and the driver will definitely love driving it, and I think that's a competitive advantage for Tesla.

If you want to see some of the conditions that most conventional diesel truck drivers have to deal with today, and what long-haul driving is like, the driver comfort alone will be a huge selling point for the Tesla Semi.

After almost 10 years From the ground up, the Tesla Semi has finally hit the market, and this product will deeply impact the trucking industry. Everyone in the industry will want a Tesla Semi.

It's a no-brainer financial choice. Driver convenience is a huge bonus, but it's unnecessary. Better for the driver, better for the owner/operator, significantly lower ongoing operating costs (electric versus diesel), plus much lower repair and maintenance costs .

That's the bottom line. When the Tesla Semi finishes its radical transformation of the trucking industry, it will never be the same again . Wait, did I say "the same again" ? I meant freight.

The freight industry will never be the same again .