According to a report from the electric vehicle website electrive.com, California's clean truck incentive program has reserved approximately $165 million in funding for the Tesla Semi, despite the electric truck not yet reaching full-scale production. This allocation of funds has raised concerns within the electric truck industry regarding market concentration, the certification process, and the impact on competing zero-emission vehicle manufacturers. California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) aims to accelerate the electrification of medium- and heavy-duty vehicles, a sector responsible for significant air pollution and greenhouse gas emissions.
Since its launch in 2009, the program has allocated over $1.6 billion to state agencies and port authorities to support zero-emission trucks and buses. However, in the most recent funding cycle, nearly 1,000 vouchers were initially allocated for the Tesla Semi, granting Tesla a significantly larger share of the funds than any other manufacturer.
Following media inquiries, publicly available data on the funding was revised. The updated data no longer includes funding contributions from local ports. Despite this adjustment, Tesla is still expected to receive approximately $165 million, while the second-highest recipient, Canadian bus manufacturer New Flyer, was allocated about $68 million.
To qualify for the HVIP incentive, vehicles must meet zero-emission powertrain certification requirements and be approved by the California Air Resources Board for inclusion in the program's eligible vehicle list. When voucher applications for the Tesla Semi were submitted, the publicly available certification records were incomplete; only the 2024 model year was listed as an eligible vehicle. Models for subsequent years were not on the list prior to incentive distribution.
California officials stated that the certification process involves confidential business information and that funds are only disbursed after all requirements are met and vehicle delivery is completed. However, the reservation of these vouchers effectively limits the ability of other manufacturers, who produce eligible electric trucks, to access funds. This is because HVIP operates on a first-come, first-served basis, and funding rounds are typically oversubscribed within days.
After the data adjustment, the value of the Tesla Semi vouchers is estimated to range from $84,000 to $351,000 per vehicle. Tesla has not publicly announced the price of the electric truck. According to reports based on related documents, the 300-mile range version is priced around $260,000, and the 500-mile version around $300,000. These prices are below the average cost of a zero-emission heavy-duty truck in California for 2024. The program offers subsidies covering up to 90% of the sticker price for private fleet operators.
The Tesla Semi was unveiled as a prototype in 2017, with initial production planned for 2019. However, deliveries have been limited since then, with only a small number of vehicles delivered to date through the voucher program. California officials indicated that many unfilled orders are expected to be delivered by the end of 2026. The Tesla Semi is projected to be officially available for general sale in 2026.