Tesla’s flashy unveiling last week of a futuristic, electric heavy-duty truck was an eye-opener for industry experts, who are hopeful but still wonder if its game-changing features could truly be mass-produced affordably.
Nevertheless, officials at the twin ports of Los Angeles and Long Beach are going along for the ride. They have met with Tesla engineers about the new Semi to offer tips and learn about its unique features.
“Tesla has been recognized as a leader in the development of battery technology and battery-manufacturing processes,” said Chris Cannon, director of environmental management for the Port of Los Angeles. “We’re anxious to see when they’re actually able to deliver a truck. Our goal is reaching zero-emissions technology for all on-road equipment by 2035.”
But few have seen the truck in person, let alone tested and gauged its possibilities. Even so, the company’s reputation and marketing strategy, a mix of Hollywoodesque hype and limited access, has helped draw curious interest from potential industry customers.
The company’s celebrity billionaire CEO, Elon Musk, claimed at its public unveiling at Hawthorne airport that it can drive for 500 miles on a single charge — double what existing electric truck technology offers.
The truck also carries autonomous-driving technology capable of taking over and driving itself if the driver’s hands leave the wheel during a route, and it comes with a 1-million-mile warranty, he said.
But the Semi won’t begin production for two years and there isn’t even a manufacturing facility for it yet. What’s more, Tesla has repeatedly failed to meet production deadlines on its low-cost Model 3 sedan, and the company abruptly fired 700 employees without notice last month.
Those facts didn’t dissuade the largest cargo hauler at the ports, NFI Industries, from reserving 10 Tesla Semis.
“Supposedly, they’re going to build a truck plant at the Gigafactory,” Tesla’s lithium-ion battery production facility in Nevada, said Ike Brown, president of NFI Industries. “I think the fact that they advertise the power train has a 1-million-mile warranty is huge. We operate our trucks over 100,000 miles a year and that would mean the whole power train is warrantied for almost 10 years.”
NFI Industries purchased California Cartage Co. in October and now has a fleet of about 2,500 trucks that do mostly local routes. Like other operators working at the ports, they are considering a range of emerging market options so it can transition to all zero-emissions trucks by 2035, a requirement in the newly approved Clean Air Action Plan.
Brown said he’s impressed with Tesla’s sedans and that, if the trucks operate similarly, he will be eager to buy them — if they are competitively priced.
“I kinda think the future of short-haul trucking is moving toward all-electric,” Brown said. “Tesla seems to have an advantage with its experience and knowledge on batteries. I hope they’re successful because I think (Musk) is a real visionary and they do build a good product.”
Nationwide, other large haulers, including Wal-Mart, Loblaws supermarket chain and JK Moving Services, reserved Tesla Semis as well. They have nothing to lose since the $5,000 reservation fee will be refunded if the company doesn’t deliver on its promises.
On Wednesday, Tesla increased the “base reservation” fee to $20,000 and announced that the trucks would cost $150,000 to $200,000 — a price range Brown said would likely motivate him to invest heavily in the vehicles.
But Tesla has a lot of competition. Daimler, Volvo, BYD Auto Co., U.S. Hybrid, Toyota, Transpower New Zealand and others are developing zero- and near-zero-emissions heavy-duty trucks. And diesel truck engines are cleaner than ever, as producers fit them with strong filters to meet government clean-air mandates.
“Tesla is entering a crowded field, as many major truck and truck engine manufacturers are developing electric trucks,” said Genevieve Giuliano, director of USC’s METRANS Transportation Center, which works to study and solve the region’s transportation problems. “We haven’t seen any demos, and there are no prototypes in service (in contrast to the other manufacturers). We have no information on the size of the batteries or the weight of the truck. Thus, at this point, we simply have a claim from Tesla.”
The Harbor Trucking Association, a coalition of cargo haulers in and around the ports, also has sought a demonstration of the new truck.
“There’s a tremendous amount of interest in the industry,” said Weston LaBar, executive director of the trucking association. “I think everybody would like to get a better understanding of what the price tag is going to be, and they would like to know that the 2019 date is going to be a solid launch time frame.”
Officials from the Port of Long Beach met with Tesla engineers recently to learn how the truck’s technology compares to hybrid, natural gas and other low-emissions vehicles on the market.
“I think the product that they have released, with the type of range they’re talking about and the capabilities, really highlights what’s possible with these type of trucks,” said Heather Tomley, environmental planning director for the Port of Long Beach.
“The program we laid out in the Clean Air Action Plan provides timelines and structure to introduce cleaner trucks and technologies as they become feasible. By 2023, the goal is to get as many near-zero emissions trucks to meet regional air-quality attainment needs.”
Cannon, of the Port of Los Angeles, said Tesla’s entrance to the electric-truck market is a good sign for the ports’ efforts to reduce pollution. The twin ports are the largest fixed source of emissions in Southern California.
“We’re excited to hear when large manufacturers commit to developing this kind of technology because we believe it has a greater likelihood of success when big companies get involved,” Cannon said. “We’re especially excited by Tesla.”