A Giant Step in the Age of Electric Transportation: PepsiCo and Tesla Semi Trouble

PepsiCo, one of the giants of the global food and beverage industry, had shown its commitment to switching to environmentally friendly transportation solutions with the order of 100 electric Semi trucks with Tesla. However, this big step fell far short of expectations due to Tesla’s delivery problems. As part of the deal, PepsiCo has so far received only 36 of the 100 trucks.

Electric Truck Crisis Between Tesla and PepsiCo

Started in 2017 and announced with high hopes, the collaboration was to be an important milestone in line with PepsiCo’s sustainability goals. Electric trucks were to be used to distribute the products of brands such as Cheetos, Lays and Pepsi to retailers in the United States. However, Tesla’s production setbacks and technical problems made it difficult to realize these goals.

Tesla’s Semi has the potential to significantly reduce carbon emissions by offering a much less environmentally impactful alternative to diesel-powered vehicles. However, the company’s battery production difficulties and the cancellation of planned low-cost car projects have further delayed deliveries. Elon Musk aims to solve the battery shortage problem by 2024.

Slowing Deliveries and Rising Costs

The state grants and federal subsidies PepsiCo received made Tesla Semi trucks more attractive. However, delays and undeliverable trucks are negatively affecting the logistics plans of large companies like PepsiCo. Other large companies such as Sysco, UPS and Walmart Canada are similarly struggling to get full shipments from Tesla.

Competitors and Market Share

This supply shortage experienced by Tesla has created opportunities for rival companies. In particular, the Freightliner eCascadia, produced by Daimler Truck, stands out with its faster delivery times compared to the Tesla Semi, despite its shorter range. Many companies, including PepsiCo, have started to evaluate Tesla’s alternatives.