United Parcel Services Inc. (NYSE: UPS) announced on Tuesday that is had placed a reservation order for 125 of Tesla Inc.’s (NASDAQ: TSLA) electric semi trucks. UPS’s order tops the previous largest order of 100 by Pepsico.
“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,” said Juan Perez, chief information and engineering officer. “These groundbreaking electric tractors are poised to usher in a new era in improved safety, reduced environmental impact, and reduced cost of ownership.”
UPS also provided Tesla navigation routes as part of the trucks evaluation in order to ensure the trucks are successful.
“As with any introductory technology for our fleet, we want to make sure it’s in a position to succeed,” Scott Phillippi, UPS senior director for automotive maintenance and engineering for international operations, told Reuters.
UPS’s pre-order with Tesla helps fulfill its commitment to reduce greenhouse gas emissions by 12 percent by 2025. UPS also established a goal for 25 percent of consumed energy to be drawn from renewable energy, while striving for a goal of 1 in 4 trucks to be electric.
UPS’s order totals out to approximately $25 million, including reservation fees.
UPS joins other companies such as WalMart, Anheuser-Busch, and Sysco who have also all placed pre-orders.
“We have high expectations and are very optimistic that this will be a good product and it will have firm support from Tesla to make it work,” Phillippi said.