Investor's Corner
Is the trucking industry ready for Tesla? Experts weigh in
When Tesla CEO Elon Musk tweeted that Tesla will unveil an electric semi-truck in September, many in the trucking industry, and even Wall Street, took notice.
Electric vehicles will make up just 1 percent of the entire trucking market by 2020, but the EV trucking industry will grow to 10 percent just a decade later, according IHS Markit, an industry research firm. The percentages of all-electric trucks abroad will be slightly higher, with markets like the European Union, Japan, and China taking the lead.
“There is a certain amount of hype to Tesla’s announcement,” said Antti Lindstrom, an analyst at IHS Markit. “It doesn’t seem that long-distance trucking is ready for electrification right now.”
What will Tesla need to do to create a viable long-haul all-electric trucking industry?
Obstacles that Tesla will need to overcome for all-electric trucking success
Of all the freight transported in America, 70% is transported by the trucking industry, according to Apex Capital. Yet, if Tesla is to break into the trucking industry with all-electric vehicles, it will need to overcome a number of barriers.
Price is probably the number one factor of concern for all-electric long-haul trucks, as an all-electric semi- compared with a diesel truck will likely be much more expensive. “Tesla cars don’t need to prove an economic case to their buyers; Tesla trucks will,” Michael Baudendistel, a Stifel Financial Corp. analyst, wrote in a recent investor report. Yes, Teslas have been targeted thus far to a wealthy segment of the population, but, just as that will change with the introduction of the Model 3, so, too, can Tesla design a reasonably priced big rig when fuel versus charging costs are taken into consideration.
Tesla would have to create a marketplace for electric trucks. “Given the happily consolidated nature of the domestic truck manufacturing market, the prospect of a new competitive threat, from a company with previous success in disrupting established industries nonetheless, is undoubtedly unwelcomed news,” states Baudendistel. This year, however, Mercedes-Benz Trucks is bringing the world´s first all-electric heavy-duty truck to market in a small release. Moreover, Piper Jaffray analyst, Alex Potter, released a note this week revealing that he was downgrading the engine and truck manufacturers Cummins and Paccar — partly as a response to Tesla’s impending semi truck reveal. With Tesla’s proven history, the trucking sector can’t be that far behind for the company. Indeed, as early as 2011, Tesla was invited to testify at the Congressional hearing titled, “The American Energy Initiative.” Tesla spoke then about the need and timing for alternative energy vehicles, especially those powered by electricity. Tesla demonstrated how an entrenched culture like that of the U.S. automaker could be disrupted; trucking manufacturers today have every right to be paying attention.
“We have intentionally departed from the traditional automotive industry model by both focusing exclusively on electric powertrain technology and owning our vehicle sales and service network… If, however, you believe in the power of American innovation to fundamentally change and improve our individual lives and our larger societal interests, then there is no question the time is right to step up and support the development of a viable EV market in the U.S. and to encourage in word and deed the American companies fighting to establish EVs in the marketplace.”
Where would all-electric trucks go for service and repair? “This has been an inconvenience for Tesla cars,” Baudendistel told Trucks.com. “For trucks, though, if the wheels ain’t turnin’, you ain’t earnin’.” Tesla has demonstrated its ability to respond to current owner needs as they became apparent. As early as 2015, the company won an automotive repair satisfaction survey. It launched a Mobile Tire Service program to better serve owners who end up on the side of the road with a flat tire. In anticipation of the Model 3 release, Tesla will be expanding its mobile service capability to include sending technicians to an owner’s home or office for minor repairs. Tesla has the capacity to create a comparable response service and repair program for long-haul all-electric trucks.
The highway charging network for heavy-duty vehicles does not exist; there is no place to charge a long-haul electric truck. “You can’t put the cart before the horse,” Baudendistel said. “Widespread adoption hinges on the availability of fueling stations, and the infrastructure built for Tesla autos was not designed for Class 8 trucks.” Electric trucks currently in use for redistributing cargo require a far smaller range than a long-haul big rig and can be recharged at a central facility. They don’t require a network of charging stations along the nation’s highways. But with the vast Supercharger network that Tesla already has in place, it seems sensible to assume that Tesla would provide adequate comparable charging for fleets of all-electric trucks.
Yes, at this time, recharging electric vehicles is time consuming. “Battery swapping and refueling overnight are both options which would require significant additional investment in infrastructure and logistics,” Baudendistel said. Tesla considered but then discarded the idea of battery swapping with its electric cars. However, with the Electrify America initiative that Volkswagen is spearheading as a result of its diesel malfeasance court settlement, recharging times may drop considerably and quickly as R&D expands. Additionally, unlike an all-electric bus, with its long wheelbase and battery storage underneath, wouldn’t the height and breadth of a semi-truck be the right design for a battery pack that is replaced at a convenient stopping point? Tesla may reconsider battery swapping if the contextual conditions are right.
The trucking industry has expressed concern that batteries needed to power a semi- would be heavy, take up cargo room, and compromise range. Daniel Murray, vice president of research for the American Trucking Research Institute, told Trucks.com, “No one has clarified for us how much extra battery weight will accrue, which, of course, decreases revenue weight.” Baudendistel added, “We believe at least 600-800 miles of range is needed for the truck to be competitive in the line-haul market. We have heard indications that the Tesla semi’s range will be 200-300 miles, which would limit its addressable market.” Just this month, however, Panasonic’s President Kazuhiro Tsuga admitted the battery trade-off between energy density and safety is prodding his company, which partners with Tesla, to look at alternative battery power sources. And this year’s Battery Symposium in Japan, once a showcase for fuel cells and LIB cathode materials, saw a shift to discussions about solid-state, lithium-air, and non-Li-ion batteries. Thus, the current state of batteries for all-electric vehicles may look entirely different in a decade and may fit the needs of Tesla all-electric long haul transportation.
Diesel fuel is inexpensive these days, which limits the costs associated with current big rig transport. “The very low fuel prices we see now and will for a long time are making most alternative-fuel vehicles appear to be very expensive,” Murray said. That perspective may be a bit short-sighted, however, as, in August 2016, the EPA and NHTSA jointly finalized standards for medium- and heavy-duty vehicles through model year 2027. They are intended to improve fuel efficiency, cut carbon pollution, reduce the impacts of climate change, bolster energy security, and spur manufacturing innovation. Clearly, these are comparable goals to Tesla’s as outlined in the 2016 Master Plan Part Deux. Evolution toward all-electric long-haul transportation as spearheaded by Tesla may fulfill many of the upcoming standards so that fossil fuel costs become irrelevant.
Elon Musk as the world’s biggest advocate of electric-powered transportation
Yes, there are many reasons why an all-electric Tesla long-haul truck will be difficult to integrate into the current transportation sector. Then again, as Baudendistel concedes, “If nothing else, Elon Musk—and by extension, Tesla—is a great disrupter.” Tesla’s innovations, from company-owned stores, over-the-air vehicle updates, and autonomous driving features, to name just three, have forced the automotive and technology industries to new levels. So, although many in the trucking industry are skeptical, it has rarely been wise to bet against Elon Musk.
“We are keeping a watchful eye on Tesla as a new entrant,” Baudendistel admits. Even with obstacles to be overcome, he says, “Still, we wouldn’t count Tesla out long-term.”
Elon Musk
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.
Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.
🚨 Our LIVE updates on the Tesla Earnings Call will take place here in a thread 🧵
Follow along below: pic.twitter.com/hzJeBitzJU
— TESLARATI (@Teslarati) April 22, 2026
The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.
The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.
For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.
Investor's Corner
Tesla (TSLA) Q1 2026 earnings results: beat on EPS and revenues
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.
As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.
Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.
Tesla Q1 2026 Earnings Results
Tesla’s Earnings Results are as follows:
- Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
- Revenues – $22.387 billion vs. $22.35 billion Expected
- Free Cash Flow – $1.444 billion
- Profit – $4.72 billion
Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.
On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.
Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q1 2026 Earnings Call at 4:30pm CT https://t.co/pkYIaGJ32y
— Tesla (@Tesla) April 22, 2026
Elon Musk
Tesla Earnings: financial expectations and what we should to hear about
In terms of discussions, Tesla earnings calls are usually a great time to get some clarification on the company’s outlook for its current and future projects.
Tesla (NASDAQ: TSLA) will report its earnings for the first quarter of 2026 this evening after the market closes, and analysts have already put out their expectations from a financial standpoint for the company’s first three months of the year.
Additionally, there will be plenty of things that will be discussed, including the recent expansion of the Robotaxi program, the Roadster unveiling, and Full Self-Driving (Supervised) approvals across the globe.
Financial Expectations
Wall Street consensus expectations put Tesla’s Earnings Per Share (EPS) at $0.36, while revenues are expected to come in around $22.35 billion.
This would compare to an EPS of $0.27 and $19.34 billion compared to Tesla’s Q1 2025. Last quarter, EPS came in at $0.50 on $29.4 billion of revenue.
Tesla beat analyst expectations last quarter, but the next trading day, the stock fell nearly 3.5 percent. We never quite can gauge how the market will respond to Tesla’s earnings; we’ve seen shares rise on a miss and fall on a beat.
It really goes on the news, and investor consensus, it seems.
What to Expect
In terms of discussions, Tesla earnings calls are usually a great time to get some clarification on the company’s outlook for its current and future projects. Right now, the big focus of investors is the Robotaxi program, the Roadster unveiling, and what the outlook for Full Self-Driving’s expansion throughout Europe and the rest of the world looks like.
Robotaxi
Tesla just recently expanded its unsupervised Robotaxi program to Dallas and Houston, joining Austin as the first cities in the U.S. to have access to the company’s ride-hailing suite.
Tesla expands Unsupervised Robotaxi service to two new cities
Some saw this move as a quick effort to turn attention away from a delivery miss and an anticipated miss on earnings. However, we’ve seen Tesla be more than deliberate with its expansion of the Robotaxi suite, so it’s hard to believe the company would make this move if it were not truly ready to do so.
The company is also working to expand its U.S. ride-hailing service outside of Texas and California, and recently filed paperwork to build a Robotaxi-exclusive Supercharger stall.
Expansion is planned for Florida, Nevada, and Arizona at some point this year, with more states to follow.
Roadster Unveiling
The Roadster unveiling was slated for April 1, and then pushed back (once again) to “probably late April,” according to Elon Musk.
It does not appear that the Roadster unveiling will happen within that time frame, at least not to our knowledge. Nobody has received media or press invites for a Roadster unveiling, and given the lofty expectations set for the vehicle by Musk and Co., it seems like something they’d want to show off to the public.
The Roadster has become a truly frustrating project for Tesla and its fans; evidently, there is something that is not up to the expectations Musk and others have. Meanwhile, fans are essentially waiting for something that is six years late.
At this point, also given the company’s focus on autonomy, it almost seems more worth it to just cancel it, remove any and all timelines and expectations, and surprise people with something crazy down the line, maybe in two or three years. There should be no talk of it.
Full Self-Driving Global Expansion
We expect Musk and Co. to shed some details on where it stands with other European government bodies, as it recently was able to roll out FSD (Supervised) to customers in the Netherlands.
Spain is also working with Tesla to assess FSD’s viability as a publicly available option for owners.
With that being said, there should be some additional information for investors as they listen to the call; no talk of it would be a pretty big letdown.
Optimus
There will likely be a date set for the Gen 3 Optimus unveiling, and we’re hopeful Tesla can keep that date set in stone and meet it. Not reaching timelines is a relatively minor issue, but a company can only do this for so long before its fans and investors start to lose trust and disregard any talk about dates.
It seems this is happening already.
Optimus has been pegged as Tesla’s big money maker for the future. The goals and expectations are high, but it is a privilege to have that sort of pressure when investors know the company’s capability.