Tesla re-opens: UPS pre-orders 125 electric semi-trailers
Original Title: Tesla Reopens: UPS Pre-Orders 125 Electric Semi-Trucks
According to Reuters, UPS announced on Tuesday that it has placed an order for 125 electric semi-truck models from Tesla, marking the company’s largest electric truck order to date. This move signals a growing interest in sustainable and innovative transportation solutions within the logistics industry.
Image Source: Reuters
Tesla is making a strong push into the commercial trucking sector, aiming to offer a more affordable, cargo-ready electric truck that can compete with traditional diesel models. The company recently revealed the pre-sale pricing for its electric semi-trailers, which include two versions: one with a range of 300 miles and another with a 500-mile range, priced at $150,000 and $180,000 respectively.
UPS estimates that the total cost of operating an electric semi-truck over its lifetime will be significantly lower than that of conventional diesel trucks, which typically cost around $120,000 annually. This cost efficiency is a key driver behind the company's decision to invest in electric vehicles.
This isn't the first time Tesla has secured large orders. Prior to this, the company had already received pre-orders from Walmart, JB Hunt Transport Services, and Sysco Corp. PepsiCo had previously ordered 100 electric semi-trucks, which was then Tesla’s largest pre-order.
As part of its evaluation process, UPS provided Tesla with detailed route and lane information to help optimize the performance of the new trucks. The company often collaborates with emerging tech firms to tailor solutions that meet its specific operational needs.
Scott Phillippi, Senior Director of Automotive Maintenance and International Business Engineering at UPS, stated, “We hope this project will be successful, just like any other technology we adopt.†He added that UPS will thoroughly test the capabilities of the 125 trucks, with most testing expected to take place within the U.S. Tesla will also support the initiative by offering guidance on charging infrastructure.
Phillippi expressed high expectations for the project, saying, “We believe the Tesla semi-truck will be a solid product.â€
Industry research firm FTR estimates that North America produces about 260,000 semi-trailers or Class 8 heavy trucks annually. With over 410 pre-orders currently in place, including the recent UPS deal, Tesla is gaining momentum in the electric truck market.
Meanwhile, competitors such as Navistar and Volkswagen are also entering the space, planning to introduce smaller electric mid-range trucks by the end of 2019. Daimler recently launched its first compact electric truck in New York.
Tesla unveiled its electric semi-truck in November and plans to begin production in 2019. On Wednesday, Tesla shares fell slightly in the morning session, closing at $338.61 on the Nasdaq.
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