News
Tesla Semi faces new wave of skepticism from diesel veterans
There is very little doubt that the Model S, Model X, and Model 3 have disrupted their respective segments since they were released. Tesla aims to accomplish the same thing with its all-electric Semi truck, but the vehicle’s target is a lot more ambitious — it aims to disrupt the trucking industry.
The trucking industry is vast, and it is still growing. Long-haul trucking stands is the lifeblood of the US economy, handling the transportation of up to 71% of food, retail goods, construction supplies, and other cargo delivered every day. The American Trucking Associations’ American Trucking Trends 2018 report revealed that the US trucking industry generated $700.3 billion in economic activity in 2017, representing a 3.5% increase compared to 2016 when the trucking market generated $676.6 billion. This is the market that Tesla is aiming to tap into with the Semi.
One of the Tesla Semi’s main selling points is that it’s an environmentally-friendly vehicle. Being all-electric, the Semi is a zero-emissions truck. This is an advantage over conventional diesel trucks, which are a significant source of air pollution in the United States. According to the Environmental Protection Agency, greenhouse gases from medium and heavy-duty trucks were found to have increased by 85% between 1990 to 2016, accounting for about 23% of carbon emissions from transportation in 2016. This is despite the fact that diesel engines are getting steadily cleaner. The EPA estimates that emissions from current engines are about 85% lower than before 2007 when the US rolled out new standards.
The Tesla Semi has several features that make it a viable alternative to diesel-powered long-haulers, from its four Model 3-derived electric motors, its comparable Class 8 hauling capacity, and its superior speed. That said, it appears that America’s diesel veterans would not give up without a fight. In a statement to Bloomberg, Jon Mills, a spokesman for engine maker Cummins Inc. noted that electric trucks have a long way to go before they could be considered competition for diesel trucks.
“Right now, we don’t think it’s viable. Electric trucks are more viable where you have shorter routes, less loads and you’re able to recharge,” he said.
Cummins Inc. is one of America’s premier engine-makers, supplying engines for consumer trucks, fire engines, and heavy-duty long-haulers. Most of the company’s engines run on diesel, though they are also making some that operate on natural gas. Mills noted that Cummins is developing electric motors as well, but the company does not expect a lot of demand for them anytime soon.
Mills did admit that electric trucks would contribute to reducing pollution. Nevertheless, the Cummins Inc. spokesman noted that the trucking industry is likely not ready to switch to electric, mainly since vehicles like the Tesla Semi have limited range. Considering that some truck drivers are paid by the mile, they would likely lose money while waiting for their vehicles’ batteries to recharge.
“Diesel will be the primary option for heavy duty trucking markets, long haul especially, for a decade or more,” Mills said.
Elon Musk wants to initiate the transition sooner. When unveiling the Tesla Semi’s specs, Musk noted that the electric long-hauler would be cheaper to operate than comparable diesel-powered trucks. Musk noted that the Semi could cost operators $1.26 per mile to run, less than the standard $1.51 per mile that diesel-powered vehicles cost. That said, Allen Schaeffer, executive director of the Diesel Technology Forum trade group, is skeptical of Musk’s claims, noting that there is little need for a new entrant in the shipping industry.
“It’s easy if you’re just coming into this market to say ‘they’re $1.50 per mile and we can do it for $1.20. But where’s the proof? I haven’t seen it. Diesel is the benchmark for energy efficiency. Diesel dominates the entire sector,” he said.
Amidst continued reservations from veterans in the trucking industry, Tesla is nonetheless pushing through with further development of the Semi. The company has been conducting real-world tests of the Semi since the vehicle was unveiled, and during the Q2 2018 earnings call, Elon Musk noted that improvements to the truck are being made. Thus, when the Tesla Semi enters production, the long-hauler would be an even more viable alternative to diesel-powered trucks.
“We’ve made significant improvements to the design since the unveiling that we had, and it’s really even better than what we talked about,” Musk said.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
News
Tesla Model Y L is gaining momentum in China’s premium segment
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla’s domestic sales in China held steady in November with around 73,000 units delivered, but a closer look at the Model Y L’s numbers hints at an emerging shift towards pricier variants that could very well be boosting average selling prices and margins.
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla China’s November domestic numbers
Data from the a Passenger Car Association (CPCA) indicated that Tesla China saw domestic deliveries of about 73,000 vehicles in November 2025. This number included 34,000 standard Model Y units, 26,000 Model 3 units, and 13,000 Model Y L units, as per industry watchers.
This means that the Model Y L accounted for roughly 27% of Tesla China’s total Model Y sales, despite the variant carrying a ~28% premium over the base RWD Model Y that is estimated to have dominated last year’s mix.
As per industry watcher @TSLAFanMtl, this suggests that Tesla China’s sales have moved towards more premium variants this year. Thus, direct year-over-year sales comparisons might miss the bigger picture. This is true even for the regular Model Y, as another premium trim, the Long Range RWD variant, was also added to the lineup this 2025.
November 2025 momentum
While Tesla China’s overall sales this year have seen challenges, the Model Y and Model 3 have remained strong sellers in the country. This is especially impressive as the Model Y and Model 3 are premium-priced vehicles, and they compete in the world’s most competitive electric vehicle market. Tesla China is also yet to roll out the latest capabilities of FSD in China, which means that its vehicles in the country could not tap into their latest capabilities yet.
Aggregated results from November suggest that the Tesla Model Y took the crown as China’s #1 best-selling SUV during the month, with roughly 34,000 deliveries. With the Model Y L, this number is even higher. The Tesla Model 3 also had a stellar month, seeing 25,700 deliveries during November 2025.
Cybertruck
Tesla Cybertruck earns IIHS Top Safety Pick+ award
To commemorate the accolade, the official Cybertruck account celebrated the milestone on X.
The Tesla Cybertruck has achieved the Insurance Institute for Highway Safety’s (IIHS) highest honor, earning a Top Safety Pick+ rating for 2025 models built after April 2025.
The full-size electric pickup truck’s safety rating is partly due to the vehicle’s strong performance in updated crash tests, superior front crash prevention, and effective headlights, among other factors. To commemorate the accolade, the official Cybertruck account celebrated the milestone on X.
Cybertruck’s IIHS rating
As per the IIHS, beginning with 2025 Cybertruck models built after April 2025, changes were made to the front underbody structure and footwell to improve occupant safety in driver-side and passenger-side small overlap front crashes. The moderate overlap front test earned a good rating, and the updated side impact test also received stellar marks.
The Cybertruck’s front crash prevention earned a good rating in pedestrian scenarios, with the standard Collision Avoidance Assist avoiding collisions in day and night tests across child, adult crossing, and parallel paths. Headlights with high-beam assist compensated for limitations, contributing to the top award.
Safest and most autonomous pickup
The Cybertruck is one of only two full-size pickups to receive the IIHS’ Top Safety Pick + rating. It is also the only one equipped with advanced self-driving features via Tesla’s Full Self-Driving (Supervised) system. Thanks to FSD, the Cybertruck can navigate inner city streets and highways on its own with minimal supervision, adding a layer of safety beyond passive crash protection.
Community reactions poured in, with users praising the vehicle’s safety rating amidst skepticism from critics. Tesla itself highlighted this by starting its X post with a short clip of a Cybertruck critic who predicted that the vehicle will likely not pass safety tests. The only question now is, of course, if the vehicle’s Top Safety Pick+ rating from the IIHS will help the Cybertruck improve its sales.
Tesla gets bold Robotaxi prediction from Wall Street firm
Tesla Model Y L is gaining momentum in China’s premium segment
