U.S. package carrier FedEx Corp. (NYSE: FDX) announced Monday that it has placed a reservation for 20 Tesla Inc. (NASDAQ: TSLA) semi trucks. FedEx is the latest in a string of reservations and orders for the all-electric semi that is scheduled to go into production next year.
FedEx’s main U.S. competitor, United Parcel Service Inc. (NYSE: UPS) reserved 125 of the vehicles last December, the largest order so far for the new vehicles. Other major companies that have reserved Tesla semis include Walmart Inc. (NYSE: WMT) with a reservation for 15, PepsiCo Inc. (NYSE: PEP) with an order for 100 and Anheuser-Busch Inbev N.V. (NYSE: BUD) has ordered 40. Food distributor Sysco Corp. (NYSE: SYY) has reserved 50 semis.
FedEx noted that the all-electric semis will operate by the less-than-truckload (LTL) unit of FedEx Freight.
FedEx Freight CEO Mike Ducker said:
FedEx has a long history of innovation and incorporating sustainability efforts throughout its global network. Our investment in these trucks is part of our commitment to improving road safety while also reducing our environmental impact.
The expected range of the trucks is 500 miles with a full charge and 400 miles following a 30-minute quick charge. According to one analyst, one-third of all semi truck trips are regional and travel distances range between 100 and 200 miles.
Trucks move 70% by weight and 82% by value of all U.S. freight. FedEx’s plan to use the trucks for LTL runs may turn out to be the perfect application for the Tesla semi.
Tesla semi prices start at $150,000 and each reservation for a vehicle must come with a deposit of $20,000.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
