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UPS orders 125 Tesla electric trucks

UPS orders 125 Tesla electric trucks

As the all-electric Tesla Semi Trucks will cost around $200,000 a unit, the order from UPS totals around $25 million - seemingly a fair bit of money, though in reality just UPS tipping its toes in the water. The new vehicles will be part of the company's alternative-fuel fleet of trucks.

Last month, German logistics company DHL reserved 10 trucks. It intends to deliver a 70% savings in fuel costs per mile, as well as 60% lower maintenance costs, with the intended market being short-haul and regional fleets.

"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", stated the senior director for automotive maintenance and engineering for global operations at UPS, Scott Phillippi, in an interview with Reuters. With a sleek, aerodynamic profile, the Tesla Semi is billed as quicker and more economical than today's diesel-powered trucks.

The truck will have Tesla's Autopilot system, which can maintain a set speed and slow down automatically in traffic. "It will actually automatically lane keep as well".

"It's as though you're driving a Model S or a Model X or a Model 3", he said.

Musk said Tesla plans to establish a global network of solar-powered "megachargers" that could give the trucks 400 miles of range after charging for just half an hour.

UPS orders 125 Tesla electric trucks

The company now has a working prototype of its ET-One, and offers fleet demos to prospective buyers, and expects to be able to produce the truck in 2019.

Tesla is now aiming to begin deliveries of the Tesla Semi offering in 2019.

"Reserving Tesla trucks marks an important step in our efforts to implement industry-changing technology", said John Roberts, president and chief executive officer at J.B. Hunt. So, we think that Tesla is the one who has come the furthest with the technology so far. Ryder did not specify the size of its order.

The Tesla Semi is scheduled for production in 2019.

The company said the electric trucks are poised to usher in a new era in improved safety, reduced environmental impact and reduced cost of ownership. The largest order for the vehicle before UPS was Pepsi's, for 100. UPS frequently partners with suppliers of emerging vehicle technologies to help them develop solutions that prove ready for stringent UPS use-cases.

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