Tesla CEO Elon Musk announced that the company has started production of its Semi truck. The disclosure was made during a conference call, marking a significant development in the company's commercial vehicle lineup.

Production Update

The initiation of production follows years of anticipation regarding the electric heavy-duty truck. Musk's statement confirms that manufacturing has commenced, moving the project from development to the physical production phase.

Tesla Inc. delivered a record 480,126 vehicles in the second quarter, a 25% increase from the previous year, marking its strongest second quarter ever. The company reported Q2 free cash flow of $(1.092) billion, an operating margin of 1.4%, and a gross margin of 16.8%. Analysts question whether this volume surge translates into durable earnings power or if aggressive price cuts and rising costs have hollowed out the headline growth. The company will report earnings on Wednesday after the closing bell, with investors focused on margins and cash flow amid heavy spending on robotaxis and artificial intelligence.

Deliveries and Pricing Dynamics

The significant delivery jump exceeded the company-compiled analyst estimate of 406,024 vehicles. This volume recovery comes shortly after Tesla raised monthly lease prices across its U.S. Model 3 lineup by up to 15%, reversing part of the aggressive discounting introduced this spring. The base rear-wheel-drive Model 3 lease price increased by 15.2% to $379 per month from $329, while the Performance version rose 5% to $629.

Earnings Expectations and Margin Pressure

Wall Street consensus forecasts revenue of $27.58 billion for the quarter. Analysts project GAAP earnings between 34 and 36 cents per share, and non-GAAP earnings at 55 cents per share. Despite the record deliveries, financial projections indicate pressure on profitability. Gross margin is projected at 19.5%, while operating margin is expected to be just 5.4%. Net income attributable to common shareholders is estimated around $1.28 billion.

Production Updates

Tesla stated that first-generation production lines for Optimus are being installed in anticipation of production in 2026. Additionally, the Megafactory Texas is nearing completion, with the start of production planned for this year.