PepsiCo Beverages North America (NASDAQ: PEP) announced this week that it plans to add 50 Tesla electric semi-trucks to its California fleet as part of the company’s mission to reach net-zero emissions by 2040.
The snack and beverage company plans to rollout the trucks throughout the next several months, according to an announcement. The trucks will operate out of the company’s manufacturing and distribution facility in Fresno.
Pepsi will also add 75 Ford E-Transit electric vans to its California fleet at its 13 locations for deliveries and service support. The move to electrify vehicles is part of the company’s goal to reduce emissions across its operations. The company already uses the Tesla (NASDAQ: TSLA) Class 8 trucks in a Sacramento bottling plant.
“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,” John Dean, a PepsiCo president, said in the news release.
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Forty percent of greenhouse gas emissions in California are caused by the transportation sector, according to the California Hydrogen Business Council, a Yorba Linda-based trade association. The state is driving the switch to emission-free heavy-duty trucks to meet its goal of reaching a 40% reduction of greenhouse gas emissions by 2030. A group of states have sued to stop the rule from taking effect.
The trucks coincide with a job training program for Reedley College and Duncan Polytechnic High School students, who will gain hands-on experience in the field of electric trucks and infrastructure maintenance.
Pepsi’s Fresno facility is 170,000 square feet and distributes beverage products. The company installed chargers and battery energy storage systems ahead of the arrival of the trucks.
Company leaders have praised the trucks’ performance, including its range — up to 450 miles a day. The company ordered the first round of trucks in 2017 when Tesla CEO Elon Musk first pitched the idea. Production suffered long delays.