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Electric trucks from large to small vital to Tesla’s Master Plan
It all goes back to Elon Musk’s original secret Master Plan from 2006, when the billionaire entrepreneur issued his famous vision of the future: “[T]he overarching purpose of Tesla Motors (and the reason I am funding the company) is to help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy, which I believe to be the primary, but not exclusive, sustainable solution.”
Musk made an executive decision right from the beginning to target customers whose opinions influence others by building premium electric cars that would make people sit up and take notice. Until Tesla came along, electric cars were little more than glorified golf carts. But if Tesla is going to make significant progress toward its ultimate goal, it is going to have to make electric trucks as well as passenger cars. Trucks are responsible for about 50% of all emissions created by the transportation sector according to the EPA. It’s no wonder Musk’s follow up plan calls for a zero emissions Tesla targeted at the mid to heavy duty truck segment.
The Tesla Plan
“In addition to consumer vehicles, there are two other types of electric vehicle needed: heavy-duty trucks and high passenger-density urban transport. Both are in the early stages of development at Tesla and should be ready for unveiling next year,” outlines Musk in his Master Plan Part Deux.
Aaron Turpen previously gave us an excellent analysis of what characteristics a Tesla pickup would need to have in order to be successful. He set out in detail what Tesla would need to do to build such a truck.
- V8-like performance including roughly 400 hp and 380 lb-ft
- Extended and four-door cab offerings
- Cargo bed size of 5.5 feet with option for 7 feet
- Towing capacity of about 10,000 pounds
- Payload capacity of 1/2 ton to 3,000 pounds
- 4×4 capability
- Driving range, under load, of at least 150 miles
- Conventional styling and appeal
How is Tesla going to make batteries with the energy and power needed to move such heavy vehicles? The Powerwall may offer clues. Just one year after it was introduced, Tesla brought its second generation version to market with roughly double the capacity of the original. Tesla doesn’t reveal very much about its ongoing battery research programs, other than to say that improvements of between 5 and 7 percent a year are anticipated as it ramps up production at the Gigafactory.
One assumption is that batteries for trucks will be significantly different from those used on its passenger cars, with more focus on energy and less focus on power. While a Tesla pickup that breaks the 3 second 0-60 barrier would be very cool, that sort of acceleration would have little relevance to how a truck gets used in daily driving.
When it comes to trucks that haul freight, it’s possible that the company has some sort of battery swapping plan in mind at truck stops along major transportation routes. Another approach would be to simply swap tractors at designated service areas much the way Formula E drivers swap cars during a race. Tesla could own the trucks and lease them to freight companies. The idea is as old as the Pony Express.
What About The Competition?
While Tesla is busy planning its truck strategy, other companies are chasing the same low emissions dream. Most of them rely on some form of range extender engine to build a truck that has low emissions but is cost competitive. The most promising of those ventures may be from Workhorse, which claims it will have a full size plug-in hybrid pickup truck with dual motors on the market by 2018. It uses the two cylinder range extender engine from the BMW i3 REx to provide electricity to the battery when needed. A rendering of the truck by Australia’s Motoring shows a truck that is purposeful rather than svelte in its design.
Delivery and cargo vans are another target market. Four large cities — Mexico City, Paris, Madrid, and Athens — announced their intention to ban all diesel powered vehicles from their streets by 2025. Many of the medium duty trucks used to deliver food and consumer goods to city dwellers are powered by diesel engines, especially in Europe.
Deutsche Post, known globally as DHL, is one of the largest parcel delivery companies in the world. It is working hard to reduce its carbon footprint but could not find an all electric van suitable for its needs. So it built its own. “We designed it as a tool. So the fit and finish does not need to be as good as in a passenger car,” Win Neidlinger, director of business development at Deutsche Post tells Fortune. “It did not cost billions to develop and produce. You will not believe how cheap it is to make.” The company now plans to become a manufacturer and start selling the vans, which it calls StreetScooters, to customers in 2017.
UPS is also in the delivery business and is a world leader in testing alternative fuels and alternative powertrains in its trucks. It has invested more than $750 million in alternative fuel and advanced technology vehicles since 2009. UPS now has 7,700 low emission vehicles in its “rolling laboratory” test fleet and is evaluating vehicles that run on natural gas, renewable natural gas, and propane according to Electric Cars Report.
It also is using electric powertrains in some of its vehicles. A version of the Workhorse plug-in hybrid range extender system is being tested in several of its delivery vans. It is also thinking small when it comes to what is known in the industry as the “last mile” conundrum. How do companies like UPS create nimble, zero emissions vehicles that can access congested urban areas? One solution being tried in Hamburg, Germany and Portland, Oregon is a hybrid electric tricycle called the eBike. It has a battery and electric motor and can move using pedal power, electric power, or a combination of both.

Photo credit: UPS
Some of the biggest polluters are garbage and trash hauling trucks. Because the stop and start hundreds of times a day, their diesel engines are constant spewing toxic pollutants into the atmosphere. While their total numbers are small, they discharge a disproportionate amount of emissions to the atmosphere. Taming the emissions from beasts would be an important step forward.
Ian Wright, a Tesla co-founder and former board member, thinks he has a solution. His company, Wrightspeed, builds heavy trucks powered solely by electricity but with a twist. Wright and his engineering staff have invented a small natural gas powered turbine that acts as a range extender engine. He claims his turbine operates so cleanly, it does not require a catalytic converter to meet California’s strict tailpipe emissions laws.
Salt Lake City start-up Nikola Motors recently revealed its idea for a 1000 HP low emissions electric truck called the Nikola One. Sleek and futuristic, it relies on battery power to turn its six electric motors but also has an onboard hydrogen fuel cell that is says will give the tractor a range of 800 to 1000 miles. The company says it has over a billion dollars worth of reservations in hand. While it did present a full size prototype at the reveal, many are taking a wait and see attitude toward Nikola Motors, which has no factory at the present time but claims it will begin production in 2018.
Summary
Trucks will play an important role in reducing global emissions from the transportation sector. A recent report from Navigant Research predicts annual sales of electric trucks — including hybrids and plug-in hybrids — will increase by a factor of ten over the next decade. From 31,000 worldwide today, Navigant says more than 332,000 electric trucks will be sold annually by 2026. That’s a big market for manufacturers to target.
Tesla has refused to consider any sort of range extender device for its cars, but solving the problems of building low emissions trucks for delivering freight and cargo across long distances may make such things a necessity. The need is great and the time is short. If hybrid trucks are what are needed, even as a stop gap measure while battery technology catches up with energy and cost constraints, that would be important for a world struggling to limit carbon emissions.
Cybertruck
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
Elon Musk
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Elon Musk
Tesla hits major milestone with Full Self-Driving subscriptions
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.


