Tesla Inc. TSLA has announced plans for the first units of its Semi truck to start production by the end of this year.

Production Insights: According to Dan Priestley, head of Tesla’s Semi Program, the Nevada Gigafactory will be capable of producing 50,000 units annually. Priestley commented, “First units are set to be on the line by the end of this year, and we’ll be ramping the factory throughout 2026,” as reported by Reuters.

Significance: This production update comes after previous setbacks in scaling the truck’s manufacturing due to tariffs imposed by U.S. President Donald Trump on China. Initially, Tesla was prepared to manage costs when tariffs reached 34%, but the situation changed dramatically with tariffs now at 145% on Chinese imports, complicating the company’s plans.

Tesla is also focused on fulfilling its commitment to deliver Semi trucks to PepsiCo Inc. PEP, having delivered over 50 units last year.

In other developments, Elon Musk confirmed that the company remains on track to launch its robotaxi service, which leverages Tesla’s Full Self-Driving technology, in June. The service is currently undergoing a limited rollout for employees in Austin and the San Francisco Bay Area, having already completed 1,500 trips.

Tesla’s stock demonstrates solid momentum and quality metrics, with satisfactory growth. However, performance on the value metric remains weak.

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