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Tesla secures $100 million agreement for 370 electric Semi trucks

  • New Tesla Semi: Credit: Tesla

Tesla just landed a huge order for its electric commercial truck. WattEV ordered 370 Tesla Semis for its freight operations in California, and this massive purchase gives zero-emission transport a serious push forward. And this deal is worth about $100 million, making it the largest single order of electric Class 8 trucks in the state’s history. Soon this agreement will help change how goods move across the country, industry analysts say.

New Tesla Semi Interior
New Tesla Semi Interior / Tesla

The first 50 trucks will arrive in 2026, and they will begin active service right away. Then the rest of the fleet will hit the roads by late 2027.

More than 300 of these vehicles will go straight to a joint program with the Port of Oakland. They will handle regional freight routes that currently rely heavily on dirty diesel engines. California wants to make its freight industry carbon-neutral soon.

Reasons behind the massive purchase

Salim Youssefzadeh is the CEO of WattEV, and he recently spoke at the annual ACT Expo to explain how his company made its choice.

“We selected the Tesla Semi based on cost, performance, and availability after issuing a public request for proposals…With the Tesla Semi now entering mass production and drawing strong reviews from fleet operators nationwide, WattEV’s vertically integrated model – combining vehicle deployment, megawatt-class charging infrastructure, and full-service leasing – offers a turn-key path for carriers without any capital risk.”

The company wants to help other fleet operators switch to electric transport without spending too much money upfront. Instead of buying everything, customers can just lease the vehicles, and they gain access to the required charging stations to keep moving.

Electric trucks need a lot of electricity to keep moving heavy loads across the state. As a result, WattEV is building new Megawatt Charging System hubs to support this growing fleet. These stations will go up in Oakland, Fresno, Stockton, and Sacramento. A single station can add up to 300 miles of range to a Tesla Semi in about 30 minutes. In fact, that speed comes very close to the time it takes to fill up a regular diesel truck. The company recently broke ground on the Oakland depot. Later this location will serve as a main hub for the northern and central California corridors.

Connecting to past experience

WattEV already knows how to run electric freight across busy highways. The company has logged millions of electric miles down in Southern California. They even ran early Tesla Semi test programs at the Ports of Long Beach and Los Angeles.

Federal records indicate the company secured a $75.6 million grant to expand its west coast electric truck charging corridor. Now they want to prove that electric long-haul trucking can beat regular diesel costs over time. Yet diesel fleet owners keep dealing with rising fuel prices and strict regulations. Turnkey setups from companies like WattEV offer a realistic alternative.

This massive order comes at a great time for Tesla as it expands its commercial footprint. Corporate filings indicate the automaker recently started building the Semi on a high-volume line at its Nevada factory. Eventually they plan to produce a lot more units in 2026 to meet customer demand.

Fleet operators really like the truck’s strong torque, and they appreciate the low daily running costs compared to standard trucks. The advanced safety features built into the vehicle win them over too. When the first 50 trucks arrive in 2026, they will move a lot of cargo across the state. But they will serve another purpose by helping establish the charging network needed for even bigger fleets down the line. The entire project creates a zero-emission freight network connecting Northern and Central California.

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