Credit: Shutterstock photoShipping company UPS ( UPS ) announced Tuesday that it placed a reservation order for 125 Tesla ( TSLA ) tractor-trailer trucks, the largest order received for the all-electric vehicle since it was introduced one month ago.
[ibd-display-video id=3033048 width=50 float=left autostart=true] It follows soda giant PepsiCo ( PEP ), which placed reservation orders last week for the Tesla big-rig truck named Semi, though the planned vehicle won't start shipping until 2019. Sysco ( SYY ) and Anheuser-Busch InBev ( BUD ) also placed orders for the company's electric tractor-trailer trucks earlier this month, totaling 90.
Food distribution company Sysco placed reservations for 50 of Tesla's new fully-electric trucks, while Anheuser-Busch placed orders for 40 Tesla trucks , "to reduce the environmental impact and increase the efficiency of its operations."
UPS, which operates one of the largest commercial trucking fleets in the world, said the new Semi big-rig trucks will join its "extensive alternative fuel and advanced technology vehicle fleet."
"These groundbreaking electric tractors are poised to usher in a new era in improved safety, reduced environmental impact, and reduced cost of ownership." said Juan Perez, UPS chief information and engineering officer, in prepared remarks.
The trucks have an estimated range between 300 miles and 500 miles on a single charge, depending on the model.
Tesla shares dropped 2.3% to close at 331.10 on the stock market today .
IBD'S TAKE: Tesla shares last week surged above its 50-day moving average , though a breakout from a 370.10 buy point failed. It has an IBD Composite Rating of 40 out of best-possible 99.
Tesla introduced its futuristic big-rig truck and a sports car with a splashy debut last month, at a time when the company is burning cash and hasn't met delivery schedules for its new Model 3.
Each reservation requires a $20,000 deposit. The truck has a price range starting at $150,000 for the low-end model and $180,000 for the high-end version.
Tesla previously received orders for 15 trucks from Wal-Mart (WMT). Trucking company J.B. Hunt Transport Services (JBHY) has also placed reservations for "multiple" Tesla Semi trucks, though it has not said how many.
The new Tesla vehicles come at a time when the company is struggling to get its new Model 3 out the door, during what Musk has called " production hell ." Tesla twice delayed the launch of its semi-truck to give it more time to work through production bottlenecks on its Model 3 sedan, planned as a mass-market vehicle.
UPS' preorder of Tesla vehicles complements and advances the company's overall commitment "to reduce its absolute greenhouse gas emissions from global ground operations 12% by 2025," it said.
UPS pays a quarterly dividend of 83 cents a share. That works out to an annualized yield of 2.8%. Since 2000, the company has raised the dividend every year except in 2009, following the financial crisis.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
