Tesla Falters in Fulfilling PepsiCo’s Semi Truck Orders


PepsiCo (NASDAQ:PEP) finds itself in a quandary as it awaits the delivery of Tesla(NASDAQ:TSLA) Semi trucks, initially ordered back in 2017. Despite making payments for 100 Tesla Semis, PepsiCo reports using only 36 of the promised electric trucks, shedding light on Tesla’s challenges in ramping up production.

The shortage underscores the hurdles Tesla faces in its ambition to become a major player in the truck-manufacturing industry. While Tesla’s electric trucks garnered significant interest from companies like Sysco(NYSE:SYY), UPS(NYSE:UPS), and Walmart Canada, delays in deliveries have prompted these customers to explore alternatives from rival electric-truck manufacturers.

This shortage of Tesla Semis comes at a precarious time for Tesla, which is grappling with sluggish growth in its consumer electric vehicle segment. Moreover, recent reports suggest the cancellation of Tesla’s much-anticipated budget-friendly vehicle, further complicating its growth trajectory.

The Biden administration’s push for electric vehicles offers potential subsidies for companies like PepsiCo adopting eco-friendly transportation solutions. PepsiCo secured substantial government grants and subsidies for its Tesla Semis, highlighting the attractiveness of electric trucks in reducing greenhouse gas emissions.

While Tesla has its own fleet of Semi trucks ferrying between its facilities, delays in deliveries have left many customers, including PepsiCo, in limbo. As Tesla navigates production challenges, PepsiCo is exploring other electric vehicle options from manufacturers like Daimler Truck, which offers comparable electric big rigs.

Despite the setbacks, PepsiCo remains committed to electrifying its fleet and building the necessary infrastructure to support electric vehicles. However, concerns persist among investors like Green Century Capital Management, who urge PepsiCo to address delays and consider broader environmental impacts.

In Europe, companies like ASKO Norway are already embracing electric semis from other manufacturers while awaiting Tesla’s deliveries, highlighting the urgency for Tesla to fulfill its commitments globally.

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