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Tesla Semi will be incredibly affordable with US’ revamped EV tax credit

Credit: Tesla Inc.

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Long-range all-electric trucks like the Tesla Semi will not come cheap. Battery costs are declining quickly, but even Tesla still lists its 300-mile Semi variant with an estimated starting price of $150,000. That’s higher than the cost of a comparable diesel-powered Class 8 truck, so the Tesla Semi would have to be very compelling to convince drivers and fleet owners to make the switch to electric.

With the Schumer-Manchin reconciliation bill or the Inflation Reduction Act of 2022, vehicles like the Tesla Semi will have more than a fighting chance in the market. The bill allocates $369 billion for programs that help fight climate change and preserve the environment, and it also includes a number of revamped EV tax credits.

While the bill’s extension of the $7,500 tax credit for consumer electric vehicles may be compelling, it is still important to note that heavy-duty commercial vehicles also stand to gain from the Inflation Reduction Act of 2022. As per the bill, commercial vehicles that weigh over 14,000 pounds are eligible for a $40,000 tax credit or an incentive worth 30% of the cost of the vehicle, whichever one is less. The Tesla Semi would likely qualify for these incentives.

Granted, the Tesla Semi has been delayed for several years now, though Elon Musk has previously noted that he believes the all-electric Class 8 truck will finally enter production sometime next year. This should go in line with Tesla’s ramp of its 4680 cells, which are expected to help the company reduce its vehicle production costs.

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Tesla’s official website for the Semi indicates that the expected base price of the vehicle’s 300-mile variant is $150,000. With a $40,000 incentive, the Tesla Semi could be purchased at a price that is more affordable than a Tesla Model S and Model X Plaid without incentives. That’s a very good deal for an all-electric truck that comes with Autopilot as standard and which consumes less than 2 kWh per mile.

Interestingly enough, some states already have generous incentives for battery-electric Class 8 trucks. California, for example, offers the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which features incentives of up to $120,000 for Class 8 sustainable vehicles. With the Inflation Reduction Act of 2022’s $40,000 incentive, the Tesla Semi would be more than affordable in states like California.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk estimates Tesla Semi could reach Europe next year

“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” Musk said.

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Credit: Tesla

Tesla is preparing to expand its all-electric Semi truck program to Europe, with CEO Elon Musk indicating that the Class 8 vehicle could arrive in the region 2027.

Musk shared his update during an interview about Giga Berlin with plant manager André Thierig, which was posted on X by the official Tesla Manufacturing account.

“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” he said.

Tesla has already begun limited production and customer deployments of the Tesla Semi in the United States, with the company working to scale output through the Semi factory near Giga Nevada. Considering Musk’s comments, it appears that a European rollout would be the next phase of the vehicle’s expansion beyond North America.

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Musk’s use of the word “hopefully” leaves room for flexibility, but the remark signals that Europe is next in Tesla’s commercial expansion plans.

Musk has consistently argued that electrification should extend beyond passenger vehicles. During the same interview, he reiterated his view that “all ground transport should be electric,” adding that ships, and eventually aircraft, would follow.

The Semi plays a central role in that strategy. Heavy-duty freight remains one of the most emissions-intensive segments of road transport, and European regulators have increasingly pushed for lower-emission commercial fleets. 

Tesla recently refreshed the Semi lineup on its official website, listing two variants: Standard and Long Range. The Standard trim offers up to 325 miles of range with an energy consumption rating of 1.7 kWh per mile, while the Long Range version provides up to 500 miles, which should be more than ample for European routes.

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Elon Musk

Tesla Cybercab coming next to Giga Berlin, Optimus possibly after

“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said.

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Credit: Cybercab

Tesla could add the Cybercab and Optimus humanoid robot to the production lineup at Giga Berlin, as per recent comments from CEO Elon Musk. 

During a recent interview with Giga Berlin plant manager André Thierig, Musk identified the Cybercab as the most likely next major product for the German factory, with Optimus potentially following after.

“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said. He added that there are also “possibilities of Tesla Optimus” being produced in the facility.

Tesla has already begun production of the Cybercab in Giga Texas, with volume production expected to ramp this year. Based on Musk’s comments, it appears that if conditions align in Europe, Giga Berlin could eventually join that effort.

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The CEO’s comments about Optimus coming to Gigafactory Berlin are quite unsurprising too considering that Musk has mentioned in the past that the humanoid robot will likely be Tesla’s highest volume product in the long run. 

Giga Berlin will likely be able to produce mass volumes of Optimus, as the Model S and Model X lines being converted to an Optimus line in the Fremont Factory are already expected to produce 1 million units of the humanoid robot annually. 

Apart from his comments about the Cybercab and Optimus, Elon Musk also confirmed that Giga Berlin has started ramping battery cell production and will continue expanding Model Y output, particularly as supervised Full Self-Driving (FSD) gains regulatory approvals in Europe.

Taken together, the remarks suggest Berlin’s role could evolve beyond vehicle assembly into a broader multi-product manufacturing hub, not just a regional Model Y plant.

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Energy

Tesla Powerwall distribution expands in Australia

Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.

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Credit: Tesla

Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.

Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.

“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.

“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”

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Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.

“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”

Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.

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