Tesla‘s (Nasdaq: TSLA) highly anticipated electric semi-truck program has encountered significant delays in delivering vehicles to its main customer, PepsiCo (Nasdaq: PEP). Despite PepsiCo’s initial order of 100 Tesla Semis in 2017, the food and beverage giant has only received 36 trucks as of this month, according to company sources.
The setback highlights the challenges Tesla faces as it aims to become a major player in the truck manufacturing industry. Other customers, such as Sysco (NYSE: SYY), UPS (NYSE: UPS), and Walmart Canada (NYSE: WMT), are still waiting for their Tesla Semi orders and are turning to rival electric truck manufacturers.
Tesla’s struggles to ship enough Semis come at a time when the company is experiencing slowing growth in its consumer electric vehicle sales, leading to price cuts and reduced margins. The company has also reportedly canceled plans for a long-promised affordable car that investors had hoped would drive further growth.
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Dan Priestley, head of the Tesla Semi program, made light of the challenges at the ACT Expo, and said jokingly: “Tesla has a specialty and that is turning the impossible into merely late.” He emphasized the advantages of the Tesla Semi’s dedicated electric platform and its ability to replace diesel trucks one-for-one in operations.
But even that claim is in question as competitors continue to fill the gaps that Tesla’s delays leave behind.
Volvo Trucks North America had about 370 VNR Electric Class 8 tractors on the road with customers handling port distribution and regional routes in the US at the start of this year.
Daimler Truck‘s Freightliner eCascadia, according to a news release from January, has been “delivered to over 50 fleets in North America and covered more than 3.5 million electric miles in real world customer applications as of today.”
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Tesla aims to deliver an additional 50 Semi trucks to PepsiCo ahead of a production ramp-up, with deliveries to other customers in high volumes expected in 2026 — nearly a decade after the truck’s unveiling.
Information for this story was found via Reuters, Electrek, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
