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Tesla faces truck competition as Anheuser-Busch orders 800 semis from rival, Nikola Motor Co

There was more bad news for Tesla Inc.[1] (NASDAQ:TSLA[2]) after one of its major competitors, Nikola Motor Co, secured a major order for its hydrogen-powered semi trucks. Budweiser maker Anheuser-Busch InBev[3] (NYSE:BUD[4]), which ordered 40 electric trucks from Tesla last year, is to buy as many as 800 semi trucks from Phoenix-based Nikola. Whereas Tesla uses batteries in its powertrain technology, Nikola uses hydrogen fuel cells; neither of which generate any tailpipe pollutants.

Nikola claims its trucks are better because their system is lighter which allows the vehicles to go for up to 1,200 miles on a full charge, compared to just the 500 miles which Tesla trucks will top out at. Because they run on gas, the trucks can be refueled in 20 minutes – not too dissimilar to conventional diesel trucks – although it isn’t always easy to find somewhere to refuel them. To combat that Nikola is planning on building 700 refueling stations over the next seven years.

Anheuser-Busch is investing in eco-friendly trucks as it targets a 25% reduction in its overall carbon emissions by 2025.

READ: Tesla slides after Elon Musk’s ‘truly bizarre’ conference call[5]

The beermaker hopes to have all 800 Nikola trucks in its fleet by 2020 and will begin testing the first pre-production semis later this year.

Tesla shares, already hampered by yesterday’s earnings report which failed to clear up some lingering worries, were down 5.9% to US£283.38 come Thursday afternoon.

Anheuser’s stock was up 2.2% to US£96.70.

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References

  1. ^ Tesla Inc. (www.proactiveinvestors.co.uk)
  2. ^ NASDAQ:TSLA (www.proactiveinvestors.co.uk)
  3. ^ Anheuser-Busch InBev (www.proactiveinvestors.co.uk)
  4. ^ NYSE:BUD (www.proactiveinvestors.co.uk)
  5. ^ READ: Tesla slides after Elon Musk’s ‘truly bizarre’ conference call (www.proactiveinvestors.com)
  6. ^ Register here to be notified of future TSLA Company articles (www.proactiveinvestors.co.uk)



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