UPS pre-orders Tesla’s 125 electric semi-trucks

Detroit : United Parcel Service Inc said yesterday it is buying 125 Tesla all-electric semi-trucks, the largest order for the big rig so far, as the package delivery company expands its fleet of alternative-fuel vehicles.

Tesla is trying to convince the trucking community it can build an affordable electric big rig with the range and cargo capacity to compete with relatively low-cost, time-tested diesel trucks.

The Tesla trucks will cost around $200,000 each for a total order of about $25 million. UPS expects the semi-trucks, the big rigs that haul freight along America’s highways, will have a lower total cost of ownership than conventional vehicles, which run about $120,000.

Tesla has received pre-orders from such major companies as Walmart, fleet operator J.B. Hunt Transport Services and food service distributor Sysco Corp.

Prior to UPS, the largest single pre-order came from PepsiCo for 100 trucks.