Tesla’s Semi Program Lead, Dan Priestley, took the stage at the IAA Transportation Exhibit in Hannover, Germany, today to speak about Tesla’s Semi and its place in the European market.
The IAA Transportation exhibit features lots of discussions on the European commercial vehicle industry. Tesla was one of the exhibitors on the main stage, focusing specifically on the Tesla Semi.
It was a short keynote — only 15 minutes long (video below) — but there was a lot of information packed into those 15 minutes, so let’s review it.
Tesla Semi Coming to Europe with Improvements
Dan Priestley confirmed that the Tesla Semi will be coming to Europe as Tesla begins to scale production. Tesla has already reached out to customers and is planning applications that diesel addresses today—at a lower and safer operating cost.
One of the big keys here is that the Tesla Semi has been approved for use on European roads – the required changes to make it road-legal in the EU have been made and fitted to the cab. The vast majority of these changes were fairly minor but were still needed.
However, Tesla doesn’t intend to enter the European market immediately – they intend to address the American trucking market first, and then enter the European market shortly thereafter. We recently reported that Tesla posted a new job listing for bringing the Semi to Europe.
New Independent Front Suspension
As part of the changes for the European version of the Semi – which Tesla is calling the European Development Platform – Tesla has implemented an independent front suspension. Because of the new independent front suspension, Tesla has also had the opportunity to increase the regen for the vehicle.
And it’s not just a drivetrain item—it turns out that the many improvements to the Semi have also included a new metal frame to hold the body together, which also provides enough space for a sleeper cab version. A sleeper cab for the Semi has been one of the big items holding it back from long-range trucking, and this improvement is a huge step forward on that front. The larger Semi will also include large storage compartments underneath.
Charging and Efficiency
Tesla has also focused on improving vehicle efficiency and charge curves—and they’ve done just that. Tesla’s pilot test fleet has logged 7.5 million kilometers—4.65 million miles —and these distances have seen Tesla continuously honing the Semi’s software and hardware.
One of the Semis has 400,000 km—or 248,000 mi—on its dash already in 1.5 years, and it has been hauling at a constant full gross vehicle weight rating. That means this particular Semi has been hauling its maximum weight rating everywhere—which is about 80,000 pounds.
And Tesla has more to show – with more plans for vehicle efficiency increases around the corner. They also intend to adjust the way that their customers will charge the Semi – no dedicated charging time will be required.
Instead, the Tesla Semi will charge while loading and unloading and during mandatory driver break times. On average, it takes approximately 2 to 3 hours to load or unload a semi-truck, which provides plenty of time to charge on Tesla’s Megawatt Charging System (MCS).
Video
Below is the full discussion of Dan Priestley talking about the Tesla Semi at the exhibit in Germany.
Here is today's full presentation from @Tesla's head of Semi engineering, Dan Priestley, and a PepsiCo representative, where they talk about PepsiCo’s Tesla Semi case study. pic.twitter.com/kvro9hk5OY
Tesla intends to expand the current Semi program in the United States. For now, it's been limited to PepsiCo and its subsidiaries, including Frito-Lay. We’ve seen Pepsi and Frito-Lay trucks on the highways in California and other states, but Tesla intends to begin deliveries to other customers toward the end of this year.
We’re super excited to see what’s next for the Semi—it’ll be a real game changer for transportation in North America and Europe and a big step towards reducing carbon emissions.
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Elon Musk and SpaceX have set some ambitious dates for the first Mars landing. Musk envisions launching the Starship toward Mars by late 2026—less than two years away. There won’t be any humans on board in the initial launches. Instead, Optimus will fill in for humans. Musk stated that human landings could follow as early as 2029 to 2031.
There are certain windows that make flights to Mars feasible for humans. So SpaceX is aiming for humans to be a part of the second or third Earth/Mars launch windows from now, which are 5 to 7 years away.
Tesla continues advancing Optimus, and SpaceX remains relentless. Another Starship test launch is in the books, all while maintaining their steady weekly cadence of Dragon missions to space.
Starship departs for Mars at the end of next year, carrying Optimus.
Civilization On Earth
Musk goes on to state something interesting in another post on X. He says that the key will be whether “Earth’s civilizational technology level will last long enough to ensure Mars can grow by itself, even if supply ships from Earth stop coming.”
The statement suggests two possibilities—that Earth’s civilization collapses or fails to advance enough to solve unforeseen challenges of sustaining life on Mars.
The key concern is whether humanity will remain technologically and industrially capable long enough to ensure that Mars can eventually become self-sufficient. If Earth’s civilization weakens, either due to collapse, stagnation, or regression, Mars might not get the support it needs to reach full independence—leading to the colony’s failure.
Tossing Optimus on board Starship is a smart move, instead of having smaller, single-task robots. Optimus also has the advantage of being upgradeable on Mars as long as the hardware holds up. It could be a lot like what we saw with Tesla vehicles, where the hardware was present for many years before the vehicle was capable of driving on city streets. Optimus’ capabilities will also improve over time, even if the hardware is older.
But, how does Elon Musk envision Optimus’ role on Mars?
The answer might be simple. SpaceX can leverage a fleet of Optimus robots to assemble shelters and infrastructure before humans even arrive.
Optimus is already highly capable, with precise hands adept at manipulating tools and objects. On Mars, it could construct basic habitats, set up survival systems, and even handle ice processing, water recycling, and food production.
These facilities will be absolutely essential for the first humans to comfortably settle in and begin work on expanding, maintaining, and preparing for proper human settlement.
Beyond construction, Optimus has a major advantage—it doesn’t need oxygen. Instead, mission planners would only need to monitor battery levels, wear and tear, and any potential damage.
That said, even humanoid robots face risks. Martian dust has long been an obstacle in space exploration, clogging solar panels, damaging equipment, and causing malfunctions. Tesla will need to redesign Optimus to withstand the harsh conditions. Its joints and components will need to be sealed against Mars’ relentless environment.
Starship
Mechazilla catching Starship7 Rocket Booster for the first time ever! 🚀 Incredible Achievement by @spacex
Starship, the largest rocket ever built, is immensely capable—but still in its early testing phases. SpaceX has dedicated hundreds of hours between each flight test, refining and improving with every launch. With several Super Heavy booster catches now under their belt, the next challenge is proving Starship itself can land.
Once SpaceX can launch, complete a mission, and safely land both the booster and Starship, the dream of reaching Mars may no longer seem so far-fetched.
With that, Happy 23rd Anniversary, SpaceX! We’re with you all the way as you push humanity toward the stars.
Happy 23rd Anniversary to @SpaceX! Founded on March 14, 2002, and still pushing the limits of what’s possible, here’s to the next chapter of making life multi-planetary! pic.twitter.com/mzvrdEagAn
According to Chinese blog posts from earlier last week, now vetted by Reuters, Tesla intends to produce a cut-down version of the Model Y, initially for the Chinese market, sometime in 2026.
This follows the launch of Tesla’s cut-down Model 3 for Mexico, as well as news that Tesla intends to launch their new next-gen model sometime in the near future.
Cut Down, But How?
The new Model Y, internally referred to as Project E41, is designed to lower the entry price of Tesla’s popular SUV—one of the most compelling options on the market due to its size, range, and versatility, especially following the launch of the refreshed Model Y.
To achieve this, Tesla is reportedly aiming to reduce the Model Y’s total cost by nearly 20%, according to reports from China. While exact changes remain unknown, we can make informed guesses based on the cost-saving measures Tesla implemented in the scaled-down Model 3 for Mexico.
Textile Seats and Trim
One of the most noticeable changes in the cost-cut version of the Model 3 in Mexico was the removal of vegan leather throughout the interior. In its place, Tesla opted for a durable textile fabric for the seats, reducing material costs. Additionally, any Alcantara trim pieces were replaced with the same textile in various areas.
No Heated or Cooled Seats
Another major cost-cutting measure was the removal of heated and cooled seats, along with the heated steering wheel. While these feature reductions may seem minor, eliminating them reduces various things, such as electrical components, harnesses, and ductwork that are required for seat ventilation.
No Rear Screen
One of the more unexpected changes in the reduced-cost Model 3 was the removal of the rear screen, despite it being powered by the same front infotainment computer as the front display. Given that the screen functions primarily as an additional display rather than a standalone system, the cost to include it is extremely low. It’s one of those really smart additions Tesla has added that increases value for the consumer with minimal cost to Tesla.
Tesla is unlikely to redesign or modify the vehicle’s wiring harness for this change, meaning a rear screen could potentially be retrofitted later by the customer. Based on replacement part estimates, the screen likely costs Tesla between $5 and $20 per vehicle, which acts as a secondary monitor for the infotainment computer.
Ambient Lighting, Acoustic Glass, Speakers
The final set of changes also focuses on the interior. Tesla replaced the RGB-capable ambient lighting with a simpler white-only version—likely saving only a few dollars per vehicle. While this may seem like a minor and somewhat unexpected cut, it could serve as an upsell opportunity to the standard RWD variant.
Additionally, Tesla reduced the use of dual-pane acoustic glass, now limiting it to just the front windows and windshield. This change drastically cuts costs but also affects cabin noise levels. The dual-pane glass played a key role in making the refreshed Model Y noticeably quieter, so this downgrade will likely bring noise insulation closer to that of the original Model Y.
As for audio, Tesla scaled down the speaker system in the Mexican Model 3 from 17 speakers to just nine, while also removing the subwoofers and one of the audio amplifiers. While this cuts costs due to wiring and speakers, it also has a large impact on the audio quality in the vehicle.
Project E41 is Not the Next-Gen Model
It’s important to note that Project E41 is not the same as the upcoming, more affordable next-gen platform, which is internally referred to as Project Redwood. While Project E41 focuses on a reduced-cost version of the Model Y, Project Redwood is designed to test Tesla’s manufacturing capabilities, using their innovative unboxed assembly method to reduce both costs and production time. The goal is to create a vehicle that is smaller and more affordable, while also keeping it safe and capable of self-driving.
Tesla previously confirmed that they plan to unveil new models—distinct from cut-down versions of the Model 3 or Model Y—during their Q4 2024 Earnings Call. However, the executive team has been careful not to divulge too many details about the upcoming model during interviews. This suggests there may be a lot more that has yet to be unveiled.
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