PepsiCo Takes A Chance On Tesla, Adding 50 Trucks To Fleet
PepsiCo Beverages North America (NASDAQ: PEP) recently announced plans to integrate 50 Tesla electric semi-trucks into its California fleet. This initiative is part of PepsiCo's broader mission to achieve net-zero emissions by 2040.
According to the announcement, these semi-trucks will be gradually rolled out over the next several months. They will be based at PepsiCo’s manufacturing and distribution center in Fresno. Additionally, the company will introduce 75 Ford E-Transit electric vans across 13 locations in California for delivery and service support. This move aligns with PepsiCo's commitment to reducing emissions across its operations. Currently, the company already utilizes Tesla (NASDAQ: TSLA) Class 8 trucks at its bottling plant in Sacramento.
John Dean, a PepsiCo president, highlighted the significance of this transition in a press release. He stated, “Our fleet electrification is an important part of our pep+ (PepsiCo Positive) strategy and illustrates how sustainability is a core business strategy at PepsiCo—good for the planet, good for our business, and good for the communities we serve.”
The transportation sector is responsible for 40% of California's greenhouse gas emissions, as noted by the California Hydrogen Business Council, a trade association based in Yorba Linda. To address this issue, the state is pushing for the adoption of emission-free heavy-duty trucks, aiming to reduce greenhouse gas emissions by 40% by 2030. However, this regulation faces legal challenges from a group of states that have filed a lawsuit to prevent its implementation.
In addition to upgrading its fleet, PepsiCo is launching a job training program for students at Reedley College and Duncan Polytechnic High School. This program will provide hands-on experience with electric trucks and the maintenance of related infrastructure, preparing students for careers in this evolving field.
PepsiCo’s Fresno facility, which spans 170,000 square feet, is a key distribution hub for its beverage products. In preparation for the new trucks, the company has installed charging stations and battery energy storage systems at this location.
Company leaders have expressed satisfaction with the performance of the electric trucks, particularly noting their impressive range of up to 450 miles per day. PepsiCo initially placed its order for the trucks in 2017, following a pitch from Tesla CEO Elon Musk. Despite facing significant production delays, the trucks are now ready to be incorporated into PepsiCo's fleet.