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Wednesday, November 30, 2022
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Tesla to Deliver Battery-Powered Semis to PepsiCo


Tesla electric semi-truck | Image by REUTERS

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Elon Musk has announced that electric semi-trucks will begin hauling goods and products on American roadways in the near future.

The electric vehicle (EV) maker Tesla is beginning to produce electric commercial semi-trucks, and PepsiCo is at the front of the line to receive them in early December.

Musk announced the plans in a tweet, saying he was “excited” to announce the beginning of production of Tesla semi-trucks for PepsiCo, with a planned initial delivery date of December 1. He went on to claim that the trucks have a range of 500 miles, describing them as being “super fun to drive.”

PepsiCo also tweeted about the plans, stating the Tesla CEO is “leading the way for clean energy.”

Tesla’s battery-powered semi-trucks have been a long time coming. Musk initially unveiled the vehicle prototype five years ago, saying at the time that production would commence by 2019. PepsiCo placed its order in 2017, requesting 100 of the trucks in a bid to slash its fuel bill and reduce its carbon footprint.

However, the COVID-19 pandemic and related supply-chain crises delayed those plans multiple times.

PepsiCo is not the only interested party that has been waiting on Musk’s semi-trucks. Investors have been anticipating the addition of the Tesla semi-truck and the Cybertruck to the tech firm’s lineup, which would provide additional channels through which the company can generate revenues.

However, Tesla’s stock has not reflected much optimism lately, falling roughly 16% so far in October, as the chart below illustrates.

Chart by Yahoo Finance 

Chart by Yahoo Finance

The number of semi-trucks that Tesla will produce for PepsiCo remains unclear. However, the price tag is reported to be $180,000 per truck.

Transportation reportedly represents 10% of PepsiCo’s gas emissions. The soft drink and snack maker plans to use electric semi-trucks to transport its products from its manufacturing centers to its distribution facilities and then to retailers.

PepsiCo plans to use its first shipment of Tesla semi-trucks to service its Frito-Lay facility in Modesto, California, and its beverage plant in Sacramento.

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