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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.
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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.
Photo credit: Deutsche Post
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.
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Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
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SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
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Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX reports beat in first earnings while minimizing losses
