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Tesla aims to produce 50K Tesla Semi in 2024, could become one of US’ largest truck makers

Credit: Tesla

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If there were one upcoming product that Tesla truly discussed during the Q3 2022 earnings call, it would be the Tesla Semi. Elon Musk and Tesla executives shared a lot of interesting tidbits of information about the Class 8 all-electric truck, such as its battery range when it’s fully loaded and the expected date of its first deliveries. 

While answering questions from retail and institutional investors during the Q&A session, Musk mentioned that the Semi is already in early production. And since Tesla typically takes about a year to ramp up production of a new product, the company is currently looking to produce 50,000 Tesla Semi units per year in 2024. 

“We’ll be ramping up Semi production through next year. As I think everyone knows at this point, it takes about a year to ramp up production. So, we expect to see significant — we’re tentatively aiming for 50,000 units in 2024 for Tesla Semi in North America. And obviously, we’ll expand beyond North America. And these would sell — I don’t want to say the exact prices, but they’re much more than a passenger vehicle,” Musk said

While a production target of 50,000 per year sounds conservative for a company like Tesla — which produces 20,500 vehicles per week in Gigafactory Shanghai this Q4 2022 — such an output would already be incredibly impressive. As could be seen in data from Statista, the US Class 8 trucking market is currently dominated by Freightliner, which sold over 71,000 units in 2020 and about 100,000 units in 2019.  Statistic: U.S. Class 8 truck sales from 2007 to 2020, by brand (in 1,000s) | Statista
Find more statistics at Statista

Following Freightliner in the No. 2 spot is Kenworth, which typically sells less than 50,000 Class 8 trucks per year. In 2019, for example, Kenworth sold about 42,000 units, and in 2020, the truck maker sold over 30,000 units. Assuming that Kenworth maintains its pace and Tesla succeeds in producing and potentially selling 50,000 Tesla Semi per year in 2024, it would make the EV maker the US’ second largest Class 8 truck maker. 

That’s quite a feat, especially if one were to consider the fact that the Tesla Semi would likely be limited by the company’s battery supply in the near future. Elon Musk even noted during the Q3 2022 earnings call that the vehicle’s initial production would not involve the company’s 4680 battery cells. Once Tesla’s 4680 project hits its pace and production of the Semi gets optimized, it would not be surprising if the all-electric truck becomes the best-selling Class 8 hauler in the United States in the coming years. 

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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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Tesla board reveals reasoning for CEO Elon Musk’s new $1 trillion pay package

“Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.”

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(Credit: Tesla)

Tesla’s Board of Directors has proposed a new pay package for company CEO Elon Musk that would result in $1 trillion in stock offerings if he is able to meet several lofty performance targets.

Musk, who has not been meaningfully compensated since 2017, completed his last pay package by delivering billions in shareholder value through a variety of performance-based “tranches,” which were met and resulted in the award of billions in stock.

Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation

However, Musk was unable to claim this award due to a ruling by the Delaware Chancery Court, which deemed the payout an “unfathomable sum.”

Now, the company is taking steps to ensure Musk gets paid, as the Board feels that it is crucial to retain its CEO, who has been responsible for much of the company’s success.

This is not a statement to undermine the work of all of Tesla’s terrific employees, but a ship needs to be captained by someone, and Musk has proven he is the right person for the job.

The Board also believes that, based on a statement made by the company in its proxy, various issues will be discussed during the upcoming Shareholder Meeting.

Robyn Denholm and Kathleen Wilson-Thompson recognized Musk’s contributions in a statement, which encouraged shareholders to vote to approve the payout:

“We’re asking you to approve the 2025 CEO Performance Award. In designing the new performance award, we explored numerous alternatives. Ultimately, the new award aims to build upon the success of the 2018 CEO Performance Award framework, which ensure that Elon was only paid for the performance delivered and incentivized to guide Tesla through a period of meteoric growth. The 2025 CEO Performance Award similarly challegnes Elon to again meet a series of even more aspirational goals, including operational milestones focused on reaching Adjusted EBITDA targets (thresholds that are up to 28 times higher than the 2108 CEO Performance Award’s top Adjusted EBITDA milestone) and rolling out new or expanded product offerings (including 1 million Robotaxis in commercial operation and delivery of 1 million AI Bots), all while growing the company’s market capitalization by trillions of dollars.

Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.

In addition to these unprecedented performance milestones, the 2025 CEO Performance Award also includes innovative structural features, born out of the special committee’s considered analysis and extensive shareholder feedback. These features include supercharged retention (at least seven and a half years and up to 10 years to vest in the full award), structural protections to minimize stock price volatility due to administration of this award and, thereafter, incentives for Elon to participate in the Board’s continued development of a framework for long-term CEO Succession. If Elon achieves all the performance milestones under this principle-based 2025 CEO Performance Award, his leadership will propel Tesla to become the most valuable company in history.”

Musk will have a lot of things to accomplish to receive the 423,743,904 shares, which are divided into 12 tranches.

However, the Board feels he is the right person for the job, and they want him to remain the CEO. This package should ensure that he stays with Tesla, as long as shareholders feel the same way.

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Tesla Robotaxi app download rate demolishes Uber, Waymo all-time highs

After two and a half months of testing with a group of hand-picked Tesla influencers and some media, the company has officially launched Robotaxi rides in both Austin, Texas, and the California Bay Area to the public.

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Credit: @BLKMDL3 | X

Tesla launched its Robotaxi app to the general public yesterday, and the number of downloads is a testament to the platform’s high demand for testing.

After two and a half months of testing with a group of hand-picked Tesla influencers and some media, the company has officially launched Robotaxi rides in both Austin, Texas, and the California Bay Area to the public.

Tesla Robotaxi makes major expansion with official public app launch

Downloading the app is available to iOS users, so if you have an iPhone, you can get it and join the waitlist. Tesla has not yet launched the Robotaxi app for the Android platform, but did hint that it would be coming soon.

The testing phase with the group Tesla selected has gone well. In Austin, the City has only listed one “Safety Concern” with Robotaxi during the testing phase. For the most part, things have gone extremely well, and riders have had good things to say.

Tesla is still operating with some safeguards in place, such as Safety Monitors and Safety Drivers, but these are precautionary and temporary; CEO Elon Musk has said they should be removed by the end of the year.

Elon Musk says Tesla will take Safety Drivers out of Robotaxi: here’s when

Even still, Tesla Robotaxi is something that many people want to experience, and the app downloads prove it.

The Tesla Robotaxi app was downloaded at a rate that exceeded all rolling 30-day periods of both Uber and Waymo, according to Brett Winton of ARK Invest. Tesla’s Robotaxi’s first day on the App Store exceeded Uber’s by 40 percent and Waymo’s best download day ever by six times:

The surge in downloads is a good indication of how in demand the Robotaxi suite was, as many people within the community had vocalized their requests to try the platform, but Tesla was not ready to expand it beyond its handpicked group.

The expansion of the program will result in more rides, provided Tesla continues to expand its fleet of vehicles. It has already admitted many of those who were initially placed on the waitlist.

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Elon Musk’s xAI expands to Seattle with salaries up to $440,000

The move was announced by the artificial intelligence startup and Elon Musk on social media platform X.

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(Credit: xAI)

Elon Musk’s artificial intelligence startup xAI is opening a new office in Seattle as it accelerates its global expansion. 

The move was announced by the artificial intelligence startup and Elon Musk on social media platform X. xAI is also hiring for its first positions in the new site.

New Seattle office

As could be seen on xAI’s Careers webpage, the Seattle office is currently hiring for three engineering roles. Each of the three technical roles tied to the new site carry salaries ranging from $180,000 to $440,000. 

The new office adds to xAI’s growing presence, which now spans San Francisco, Austin, London, Dublin, New York, and Memphis. The Seattle-based roles focus on video and image generation systems, signaling Musk’s intent to challenge rivals like OpenAI and Meta in generative AI.

Pressures and challenges

Seattle also places xAI within reach of Microsoft’s headquarters in Redmond. Microsoft has emerged as a central player in the AI race through its multibillion-dollar partnership with OpenAI, making xAI’s move into the region notable. The competition for AI specialists has pushed salaries higher across the industry, with filings showing OpenAI staff earning up to $530,000 and Anthropic engineers as much as $690,000 annually, as noted by Insider.

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The startup has also seen some high-profile departures in recent months, including cofounder Igor Babuschkin and general counsel Robert Keele. Still, xAI continues to grow aggressively, and its Grok large language model has been gaining momentum among mainstream users. Work also continues to be underway to further build out the company’s Colossus supercomputer cluster. Reports have also suggested that xAI has moved into San Francisco offices in the Mission District, a site Musk initially leased during OpenAI’s early years.

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