Business Day

Tesla lands largest order for its all-electric truck

- Agency Staff Detroit /Reuters

United Parcel Service (UPS) says it is buying 125 Tesla all-electric trucks, the largest order so far, as the package delivery firm expands its fleet of alternativ­efuel vehicles.

Tesla is trying to convince the trucking community it can build an affordable electric truck with the range and cargo capacity to compete with relatively lowcost, time-tested diesel trucks.

The Tesla trucks will cost about $200,000 each for a total order of about $25m. UPS expects the heavy-duty trucks that will haul freight along America’s highways, will have a lower total cost of ownership than convention­al vehicles, which cost about $120,000.

Tesla has received preorders from such major companies as Walmart, fleet operator JB Hunt Transport Services and food service distributo­r Sysco.

Before UPS, the largest single pre-order came from PepsiCo for 100 trucks.

UPS said it had provided Tesla with real-world routing informatio­n as part of its evaluation of the expected performanc­e of the vehicle.

“As with any introducto­ry technology for our fleet, we want to make sure it’s in a position to succeed,” said Scott Phillippi, UPS’s director for automotive maintenanc­e.

The 125 trucks would allow UPS to conduct a proper test of their abilities. Tesla would provide consultati­on and support on charging infrastruc­ture.

“We have high expectatio­ns and are very optimistic that this will be a good product and it will have firm support from Tesla to make it work,” Phillippi said.

The UPS alternativ­e fuel fleet already includes trucks propelled by electricit­y, natural gas, propane and other nontraditi­onal fuels.

About 260,000 heavy-duty class-8 trucks are produced in North America annually, according to industry economics research firm FTR.

Including the UPS order, Tesla has at least 410 pre-orders in hand.

Navistar Internatio­nal and Volkswagen hope to launch a smaller, electric medium-duty truck by late 2019, while rival Daimler has delivered the first of a smaller range of electric trucks to customers in New York.

Tesla unveiled its electric truck in November and expects it to be in production by 2019.

 ?? /Reuters ?? Pulling power: Tesla’s electric truck is unveiled during a presentati­on in Hawthorne, California, in November.
/Reuters Pulling power: Tesla’s electric truck is unveiled during a presentati­on in Hawthorne, California, in November.

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