UPS Orders 125 Tesla Semis

Tesla Semi

DEC 20 2017 BY MARK KANE 32

UPS raised the bar for the largest Tesla Semi electric truck reservation placement.

The 125-unit order by UPS  beats the previous high of 100 by PepsiCo.

Tesla Semi

Tesla Semi

The delivery company expects that the new electric tractors will improve safety and reduce costs of ownership, as well as enable reduction of emissions.

It’s not known whether UPS selected the 300-mile or 500-mile versions (or some of both), but potential sales are still worth around $20 million ($18.75 million – $22.5 million).

“The new tractors will join UPS’s extensive alternative fuel and advanced technology vehicle fleet, comprised of trucks and tractors propelled by electricity, natural gas, propane and other non-traditional fuels.”

“UPS has provided Tesla real-world UPS trucking lane information as part of the company’s evaluation of the vehicle’s expected performance for the UPS duty cycle. UPS frequently partners with suppliers of emerging vehicle technologies to help them develop solutions that prove ready for stringent UPS use-cases.

Tesla’s Semi tractor claims up to 500 miles range on a single charge, an unparalleled cabin experience for drivers, enhanced on-road safety and significantly reduced long-term cost of ownership. Safety features include: automatic emergency braking, adaptive cruise control, automated lane guidance, and brake-by-wire and steer-by-wire with redundancy. Tesla’s driver-assistance features have been found by the U.S. government to reduce crash rates by 40%. Tesla expects to begin production of the vehicles in 2019 and UPS will be among the first companies to put the vehicles into use.”

Juan Perez, chief information and engineering officer commented:

“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 fleet excellence with Tesla. These groundbreaking electric tractors are poised to usher in a new era in improved safety, reduced environmental impact, and reduced cost of ownership.”

More about the UPS approach:

UPS Purchased also 125 Workhorse E-GEN Delivery Trucks

“UPS’s preorder of Tesla vehicles complements and advances the company’s overall commitment to reduce its absolute greenhouse gas (GHG) emissions from global ground operations 12 percent by 2025, a goal developed using a methodology approved by the Science Based Targets initiative.

UPS has established a goal for 25 percent of the electricity it consumes to come from renewable energy sources by 2025. In addition, by 2020 UPS plans that one in four new vehicles purchased annually will be an alternative fuel or advanced technology vehicle, up from 16 percent in 2016. The company also set a new goal that by 2025, 40 percent of all ground fuel will be from sources other than conventional gasoline and diesel, an increase from 19.6 percent in 2016.

The company operates one of the largest private alternative fuel and advanced technology fleets in the U.S., and more than 8,500 vehicles throughout the world. This includes all-electric, hybrid electric, hydraulic hybrid, ethanol, compressed natural gas (CNG), liquefied natural gas (LNG), propane, and renewable natural gas (RNG)/biomethane.

UPS also operates one of the world’s safest commercial fleets, investing more than $194 million in global health and safety training in 2016. The company continues to install in-vehicle collision mitigation technology for its class 8 fleet.

Recently, UPS was recognized among Just Capital’s “Just100,” capturing the top ranking in its industry for environmental commitments and action. UPS has also been named to Dow Jones Sustainability World Index (DJSI World) for the fifth consecutive year and the Dow Jones Sustainability North America Index for the 13th straight year.”

Categories: Tesla, Trucks

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32 Comments on "UPS Orders 125 Tesla Semis"

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Concerned

Now I am worried about Tesla. They can barely make enough batteries for Model 3, how are they supposed to make all these batteries for these semis? Not to mention businesses are a lot more vocal about there schedules being met, something Tesla is not very good at.

God/Bacardi

Tesla knew ahead of time there could be major demand as at anytime diesel prices could skyrocket causing mass Semi pre-orders…I believe the Semi’s will take top priority over everything else including the roadster because otherwise they may go bankrupt fighting huge corporations…

jelloslug

Do you seriously think that Tesla is a maximum output for cells right now?

SJC

Semi cells are not Model 3 cells, they are more like Power Wall cells.

Pushmi-Pullyu

Concerned said:

“Now I am worried about Tesla. They can barely make enough batteries for Model 3, how are they supposed to make all these batteries for these semis?”

Are you seriously suggesting Tesla is still going to have a production bottleneck at Gigafactory One two or three years from now?

If so, then I think you’ve been reading far too many Tesla bashing posts from Tesla haters.

Get Real

Look, a “concern” troll.

Go back to Seeking Liars and don’t pretend you care about EVs.

terminaltrip421

pointing out something that should be an obvious concern to everyone is trolling now huh? or did I miss the part where tesla wasn’t behind schedule on their current operations?

SJC

Get Real has been reported, but he still does not get it, NO insults.

Nick

He was just giving that concern troll post the respect it deserved.

Pushmi-Pullyu

Frankly my first reaction was also that it is a concern troll post. But I didn’t want to accuse a newbie of being a concern troll after just one post; that would be jumping the gun.

I certainly do understand Get Real’s reaction.

Gasbag

Everyone knows concerned trollls aren’t any better at math than they are at English. 500 500 mile semis would be about the battery equivalent of 5,000 TM3s. Tesla has ~500,000 reservations for TM3s and he is worried about 500 semis???? Bwahaha.

Ray

Except they were supposed to be doing 5000 M3s awhile ago, but still haven’t achieved those numbers yet as far as I know. Wasn’t there an article recently about how much batteries the Gigafactory were taking up worldwide.

Ray

I meant to say 5000 M3s a week.

Pushmi-Pullyu

“Wasn’t there an article recently about how much batteries the Gigafactory were taking up worldwide.”

There was a very recent article here at InsideEVs in which some auto makers were trying to make the astoundingly absurd accusation that Tesla’s Gigafactory, in gearing up to produce far more EV batteries than any other factory in the world, is somehow reducing the number of batteries available for other auto makers.

I don’t know whether to laugh or cry. Obviously that’s just whining by some auto makers finally facing the reality of the coming near-term shortage of EV batteries. But how could they actually justify blaming the one company that is gearing up to produce far more EV batteries than anybody else?
Blaming others for their own mistakes is one thing, but that’s being downright brain-dead!

“O Judgment! Thou art fled to brutish beasts, and men have lost their reason!” — William Shakespeare, Julius Caesar

I really wonder if it won’t actually be the end of 2020 that Tesla Semi trucks are hitting the market, instead of the end of 2019, just 24 months from now.
I expect the former, but hope the latter.

Gasbag

I expect them to start shipping in November 2019 as stated even if they have to ship the two existing demonstration vehicles.

Tesla is always late, so I suspect it’d be closer to 2021 than 2019. Anyone who thinks Tesla will deliver on time has not done the homework. I think UPS, etc. realize that and probably factor in the delay.

Gasbag

Tesla was on time with FCS of the TM3. I see less reason to doubt that FCS for the semi will also be on time even if they are token shipments as they were with the MX and M3. Anyone saying otherwise hasn’t done their homework.

Pushmi-Pullyu
Sure, there could be some token shipments of Tesla Semi Trucks in 2019. But anyone familiar with Tesla’s history should expect volume production to occur no sooner than 2020. And sure, Tesla did get the Model 3 into production sooner than nearly everybody anticipated; even sooner than their earlier goal. But then they had a huge bottleneck at Gigafactory One which lasted for months, during which TM3 deliveries were a mere trickle compared to their plans. So overall, I see no sign that Tesla has actually solved their chronic problem with overly optimistic schedules for development and production. As I see it, it’s not that Tesla is slower in developing new vehicles than other vehicle makers. It’s that they persist in announcing unrealistic timelines for development and production. Elon may think putting out impossible goals helps motivate his employees and his suppliers, but the hard-eyed businessmen and bean-counters who run commercial trucking fleets are not going to be impressed by a truck maker who makes a habit of announcing unrealistic goals and impossible timelines. As a Tesla fan, I’m still looking forward to the day when Elon steps back from being CEO to a more advisory position at Tesla, and… Read more »
HVACman

Tesla will not be taking real orders for these trucks for two years, so they have time (if they survive the Model 3 roll-out debacle) to get the the Gigafactory working as they planned and roll out truck packs along with Model 3 packs and Powerpacks.

Dav8or

Yes, I wish these authors would quit calling these reservations as orders. They are NOT orders. The reservations can be canceled at anytime with no penalty. So just because UPS said- “Sure put us down for 125.” does not mean they will actually buy 125. They might not actually buy any. All it says is they have interest in the product, but that’s it. I’m sure they have interest in other BEV trucks too.

jelloslug

For UPS, that is $2,500,000 for the reservations.

Some Guy

An invest that big (2.5 million up front on a 20 million invest in 2 years) usually requires full approvel by the highest levels of the board / CEO, even for a global player as UPS is. Those do not make these decisions to back out again a few months later. Would look bad on their face, as they would indicate that the decision to go in was wrong, and most high level executive never make mistakes (at least they claim so).

Dav8or

Yep, not a big deal. They just opened a zero interest savings account at the Bank of Tesla. The good news is, that because it’s a fully refundable, zero commitment deposit, it can still be counted as an asset on the balance sheet. When, or if the decision to actually buy some Tesla trucks is made, that’s a different story.

terminaltrip421

the more difficult logistics involved in building semis has to be at least equal to the increase in size from building smaller vehicles, no? that’s my greater concern is their ability to pump out these larger vehicles in a substantial enough way that they satiate demand.

Gasbag

Help me out here. What are these more difficult logistics? Building out a network of mega chargers? What else?

Dav8or

Basically, they have to build a whole new assembly line and a new warehouse and storage facility. They cannot make these on the same assembly line as the Model S, X, or 3. It’s basically starting all new production from scratch. A new “production hell”.

Gasbag

Building on a larger platform makes manufacturing easier not harder. Building smaller volumes eliminates production hell. This should be a cake walk as long as the batteries are in place. If They can build 25-50 per week in 2020 they should be fine.

Pushmi-Pullyu
“Help me out here. What are these more difficult logistics?” Having to deal with making and/or ordering parts for large trucks, as well as passenger cars, certainly will make Tesla’s logistics more complex. I think it’s pretty silly for Elon to keep saying (paraphrasing) “We can build semi tractors simply, out of Model 3 parts.” Well, they can certainly use TM3 motors and inverters and power electronics and possibly battery packs, and some parts of the cab interior can use parts from Tesla cars — such as those two touchscreens inside the semi truck’s cab — but otherwise there’s not much overlap between Tesla’s cars and its semi truck. For example: Where is Tesla going to shape those semi tractor body panels? Is it going to use the giant stamping machines installed at Fremont, and then ship them to Gigafactory One for assembly? Or will Tesla be buying and installing a new set of giant stamping machines in Gigafactory One? Either way, the logistics get more complicated. From tires and axles to bumpers** and windshields, the Tesla Semi Tractor won’t be sharing many parts with any of Tesla’s other vehicles! Even the sheer size of some of the large truck… Read more »
God/Bacardi

New question, which company will “one up” this by publically announcing they purchased 125+ (most likely 150)?

William

UPS, what can Brown do for you?

They can do EV package deliveries in Tesla Trucks, with the discontinued Metallic Brown color, as an appeasement to Jalopnik.

Pushmi-Pullyu

125 semi tractors will be a mere drop in the bucket for UPS. But of course, just like other trucking fleet operators, they are going to want to try them out to see how they perform, both economically and practically, before they make any decision to switch the bulk of their fleet over to BEV semi trucks.

The Tesla Semi Truck; giving new meaning to the phrase —

Go Tesla!