DETROIT (Reuters) – United Parcel Service Inc (UPS.N) said on Tuesday it is buying 125 Tesla Inc (TSLA.O) 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.
