DC Velocity - December 2017

newsworthy

ELECTRIC CAR MANUFACTURER Tesla Inc. unveiled an electrically powered tractor-trailer that the company says will outperform conventional diesel-powered trucks while boasting a driving range of either 300 or 500 miles.

Palo Alto, Calif.-based Tesla, known for building electric-powered sports cars that can accelerate faster than most gas-powered vehicles, said it planned to use the same approach for its Class 8 truck, which is slated to go into production in 2019. The “Tesla Semi” truck will use four independent electric motors on its rear axles to generate enough power to push a tractor with no trailer from zero to 60 mph in five seconds, compared with 15 seconds for a typical diesel tractor, Elon Musk, Tesla’s founder, said in a mid-November launch event that was broadcast from an airplane hangar near the company’s Hawthorne, Calif., facility.

Musk said the electric semi, after a 30-minute battery charge, could haul an 80,000-pound loaded trailer at a highway speed of 60 mph for 500 miles. Tesla said on its website that it would charge $150,000 for the model with a 300-mile range and $180,000 for a truck with a 500-mile range. It also quadrupled the down payment to $20,000.

Musk said users of the electric-powered trucks could realize a full ROI (return on investment) within two years when compared with a diesel tractor’s purchase and operating costs. The savings would come from lower fuel bills, improved aerodynamics, and reduced maintenance costs because electric motors do not rely on standard engine components like the transmission and brakes, Musk said. Instead of using conventional brake pads, Tesla Semis will control their speed through a process called “regenerative braking” that converts the vehicle’s momentum into battery power, he said.

Trucks with internal combustion engines typically sell for
slightly more than $100,000, so Tesla’s price tag is “not too
terribly crazy,” said Doug Rabeneck, director in the oper-
ations excellence practice at business and technology con-
sulting firm West Monroe Partners. Calculating a specific
ROI will come down to details about the Tesla trucks’ range
in real-world conditions and the availability of recharging
stations, Rabeneck said.

Tesla will face competition as it launches a product for the commercial trucking sector. Automaker Daimler AG makes the Fuso eCanter electric-powered light truck, Nissan demonstrated an electric truck concept in 2012, and Cummins is developing an electric semi called the Urban Hauler Tractor.

EARLY INTEREST

Tesla notched some sales immediately after its announcement when trucking and intermodal giant J.B. Hunt Transport Services Inc. said it had placed a reservation to purchase “multiple” Tesla Semi tractors. Hunt did not reply to a request for additional details about the purchase.

Lowell, Ark.-based Hunt plans to use the electric tractors for its intermodal and dedicated contract services divisions to support operations on the West Coast, the company said. “Reserving Tesla trucks marks an important step in our efforts to implement industry-chang-