Tesla’s Struggle Impacts PepsiCo’s Electric Truck Orders


PepsiCo (NASDAQ:PEP)finds itself facing delays in receiving its orders of Tesla Semi trucks (NASDAQ:TSLA), initially placed in 2017. Despite making payments for 100 trucks, PepsiCo reports that only 36 of the promised electric vehicles have been delivered, shedding light on Tesla’s challenges in scaling up production.

This shortage highlights the hurdles Tesla faces in its ambitions to establish itself 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.

The timing of this shortage is critical for Tesla, which is already grappling with sluggish growth in its consumer electric vehicle segment. Recent reports suggest the cancellation of Tesla’s much-anticipated budget-friendly vehicle, further complicating its growth trajectory.

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

While Tesla has its own fleet of Semi trucks in operation, delays in deliveries have left many customers, including PepsiCo, in a challenging position. As Tesla addresses its production challenges, PepsiCo is exploring alternative electric vehicle options from manufacturers like Daimler Truck, which offers comparable electric big rigs.

Despite these setbacks, PepsiCo remains committed to electrifying its fleet and developing 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, underscoring the urgency for Tesla to fulfill its commitments globally.

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