UPS Pre-orders 125 Tesla Semi-trucks, the Company’s Largest Order Yet

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FILE PHOTO: Tesla's new electric semi truck is unveiled during a presentation in Hawthorne, California, U.S. on November 16, 2017. REUTERS/Alexandria Sage/File Photo

Delivery giant United Parcel Service Inc. (UPS) announced on Tuesday that it had placed an order of 125 Tesla’s new electronic semi-trucks. This is the company’s largest order since the unveiling of the trucks last month.

Prior to UPS, beverage and snacks company Pepsi had reserved 100 semi-trucks, the largest order as per last week. Other major companies that have made reservations  of the semi-trucks too include Walmart that has placed an order for 15 trucks, DHL has ordered ten trucks, Adam Jonas, Sysco, and J.B Hunt Transport Services.

At the unveiling event last month, Tesla introduced two trucks of 300 miles range version costing $150,000 and 500 miles range version at $180,000. Therefore, this means that UPS’ order is worth $18 million and $25 million with $20,000 deposit for each truck.

The new Tesla trucks will add to UPS’ already existing electricity, propane and natural gas propelled trucks. The modern Semis will help UPS reduce Green House Emissions up to 12 percent by 2025.

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Elon Musk, Tesla’s founder and CEO said that the company aims at winning the trucking community over with an affordable electric engine that comes with cargo capacity to compete with lower cost diesel driven trucks.

UPS in its report said it had provided Tesla with data on how its current trucks function on the real world routes, and so, Tesla has to evaluate on how the new trucks will perform in its fleet.

The electric semi-truck has the ability to accelerate from zero to sixty miles per hour in just five seconds. This speed can only drop to twenty seconds when the truck is pulling a maximum weight of 80,000 pounds. The truck can also climb a hill at a speed of 65 miles per hour, unlike the diesel truck that would climb at a speed of 45 miles per hour.

Tesla has about 410 semi-truck pre-orders as of now, including UPS. However, the company says that the trucks will not hit the road until 2019.