Tesla says mass production of electric Semi to begin this year

Tesla said it will begin volume production of its Class 8 Tesla Semi later this year, flagging a gradual S-curve ramp that should accelerate into 2027 as supply chains and Megacharger infrastructure scale. The announcement came alongside Q1 results that beat expectations: revenue rose 16% YoY to $22.4B, operating margin improved and free cash flow was $1.4B. Management signaled a major capex increase to support six factories, AI infrastructure, and new product lines (robotaxis, Optimus), indicating higher near-term spending but potential material revenue upside from autonomy and commercial trucking in 2027. Market implications: the Semi rollout and continued AI/autonomy investments support a longer-term growth/upside thesis, while supply-chain constraints and elevated capex could limit near-term margin expansion and introduce execution risk during the slow initial ramp.