Tesla Inc. will deliver its first Semi trucks to PepsiCo Inc. five years after Elon Musk showed off prototypes and began taking deposits for the electric big rigs.
The carmaker will hand over Semis to PepsiCo on Dec. 1, Musk tweeted Thursday. The food and beverage giant has reserved 100 of the trucks and expects to deploy an initial 15 by the end of the year.
PepsiCo confirmed the plans. The company said in a statement that the trucks would be used at its Frito-Lay plant in Modesto, Calif., and its PepsiCo beverages factory in Sacramento. PepsiCo has been aiming to reduce fuel costs and emissions, and placed an order for 100 of the trucks in 2017.
Excited to announce start of production of Tesla Semi Truck with deliveries to @Pepsi on Dec 1st! pic.twitter.com/gq0l73iGRW
Musk said when Tesla first unveiled the Semi in November 2017 that it would go into production two years later. While would-be customers including Walmart Inc. and Anheuser-Busch InBev SA put down deposits, the automaker ended up prioritizing output of Model 3 sedans and Model Y sport utility vehicles for consumers while contending with battery cell and semiconductor supply issues.
In January, Musk told analysts Tesla wouldn’t roll out any new models this year because of parts constraints. He changed his tune three days after the US Senate passed the Inflation Reduction Act, which made heavy-duty electric trucks eligible for as much as $40,000 federal tax credits. The chief executive officer tweeted on Aug. 10 that the company would start shipping Semis with 500 miles of range this year.
Tesla will compete with other makers of battery-powered big rigs including relative newcomer Nikola Corp. and more established firms like Sweden’s Volvo AB. The latter announced this week that it will deliver 20 fully electric trucks to Amazon.com Inc. by year-end.
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.
Please enter a valid email address.
Please enter your email address.
Please select at least one newsletter to subscribe.
See more newsletter options at autonews.com/newsletters. You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.
Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.
Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.
The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.
1155 Gratiot Avenue Detroit, Michigan 48207-2997
Automotive News ISSN 0005-1551 (print) ISSN 1557-7686 (online)
Fixed Ops Journal ISSN 2576-1064 (print) ISSN 2576-1072 (online)