UPS has just announced, that they will be updating their fleet with a preorder of 125 new Tesla’s all-electric semi tractors.
“For more than a century, UPS has led the industry in testing and implementing new technologies for more efficient fleet operations. We look forward to expanding further our commitment to excellence with Tesla,” said Juan Perez, chief information and engineering officer. “These groundbreaking electric tractors are poised to usher in a new era in improved safety, reduced environmental impact, and reduced cost of ownership.”
This is the largest order for Tesla yet, seconded only by Pepsi’s order for 100 trucks. The purchase price for UPS was not disclosed, but given that Tesla’s website currently lists reservations for the truck at $20,000, UPS likely coughed up a cool $2.5 million for the order. The full purchase price for each truck ranges from $150,000 to $200,000 depending on the whether the customer wants the 300-mile range, the 500-mile range, or the glitzy “Founder’s Version.” This means UPS will end up spending somewhere between $18 and $25 million, for this “test run.”
“As with any introductory technology for our fleet, we want to make sure it’s in a position to succeed,” Scott Phillippi, UPS senior director for automotive maintenance and engineering for international operations, told Reuters. “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.”
The route of the 125 trucks is still yet to be determined, but will primarily be in the United States as the shipping giant tests their abilities. Their abilities, according to Tesla CEO Elon Musk, can be quite impressive.
He claims the cost of operating a Tesla semi comes at about $1.26 per mile, compared to the industry average of $1.51 per mile. The trucks are also supposed to hit 0-60 in five seconds, without cargo, and in 20 seconds with up to an 80,000 pound load. They are also said to be able to travel up to 400 miles on a single charge.
“You can go 250 miles, deliver your load and come back,” he said.
Charging a vehicle to 80%, according to Musk, would only take about half an hour and could be done while a driver takes a lunch break. Tesla’s production of the semi tractor won’t begin until 2019, and it is expected that the pre-orders will be filled first. This means, that these early companies could get ahead of the competition with an industry advantage. Other per-order customers include Wal-Mart and Anheuser-Busch.