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the chance to put out one of these press releases definitely factors into the purchasing decision for these companies. They're buying good PR almost as much as

the chance to put out one of these press releases definitely factors into the purchasing decision for these companies. They're buying good PR almost as much as they're buying trucks.

rconti 9y ago
And no doubt they have every escape clause in history in their contract. Great marketing for both companies, no risk for FedEx, and Tesla probably values the PR as much as the money at this point. They're not getting paid unless and until they can actually deliver the trucks, so why not get good press in the meantime?
- ams6110 9y ago
  Twenty trucks is really nothing for a company like FedEx. As the article noted, this is a very small pilot project for them.
  - toomuchtodo 9y ago
    UPS preordered 120. It’s not the amount that is important, it’s how many conservative logistics companies are interested that matters.
    - asddddd 9y ago
      Less conservative than you might think: https://sustainability.ups.com/committed-to-more/fuels-and-fleets/ https://sustainability.ups.com/committed-to-more/fuels-and-f... At 3 billion miles driven per year, there's a lot of room for experimenting with a few hundred/thousand new vehicles. Anyway, electric freight works well for this business assuming the range is decent. There are lots of lower range freight routes with well forecasted volume, and controlled environments at both ends allows for installing charging infrastructure.
      - toomuchtodo 9y ago
        I agree entirely. I believe Tesla is quoting a two year payback period versus traditional diesel class 8 semis, which means they will be sold out indefinitely until production ramps. It’s a smart move. Between passenger vehicles, stationary storage, and their semis, the Gigafactory should be fully utilized.
- greglindahl 9y ago
  Tesla's usual deposit scheme has an escape clause for everyone, you aren't committed until you actually configure the vehicle. Until then, you can get a deposit refund at any time.

the chance to put out one of these press releases definitely factors into the purchasing decision for these companies. They're buying good PR almost as much as they're buying trucks.

rconti 9y ago

And no doubt they have every escape clause in history in their contract. Great marketing for both companies, no risk for FedEx, and Tesla probably values the PR as much as the money at this point. They're not getting paid unless and until they can actually deliver the trucks, so why not get good press in the meantime?

ams6110 9y ago
Twenty trucks is really nothing for a company like FedEx. As the article noted, this is a very small pilot project for them.
- toomuchtodo 9y ago
  UPS preordered 120. It’s not the amount that is important, it’s how many conservative logistics companies are interested that matters.
  - asddddd 9y ago
    Less conservative than you might think: https://sustainability.ups.com/committed-to-more/fuels-and-fleets/ https://sustainability.ups.com/committed-to-more/fuels-and-f... At 3 billion miles driven per year, there's a lot of room for experimenting with a few hundred/thousand new vehicles. Anyway, electric freight works well for this business assuming the range is decent. There are lots of lower range freight routes with well forecasted volume, and controlled environments at both ends allows for installing charging infrastructure.
    - toomuchtodo 9y ago
      I agree entirely. I believe Tesla is quoting a two year payback period versus traditional diesel class 8 semis, which means they will be sold out indefinitely until production ramps. It’s a smart move. Between passenger vehicles, stationary storage, and their semis, the Gigafactory should be fully utilized.
greglindahl 9y ago
Tesla's usual deposit scheme has an escape clause for everyone, you aren't committed until you actually configure the vehicle. Until then, you can get a deposit refund at any time.