Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: https://read.dmtmag.com/i/963441
April 2018 | Overdrive | 29 suppliers and their yet-to-be-built infra- structure can meet the demands of an industry with complex logistics highly dependent on the widespread availability of diesel fueling stations and trucks with long refueling cycles. Infrastructure questions are complicat- ed further because each of today's three major players in the electrified trucking market targets a different segment of the industry and has its own unique refuel- ing model. Tesla, already a prominent pioneer in the electric car market, and the 2017-founded California-focused Thor rely on battery power and recharging stations. Thor also plans to offer battery swapping. Nikola, the first to introduce an electric-focused rig in 2016, requires no batteries. Instead, the Nikola One uses hydrogen as its base fuel, which is converted to electric power by passing quickly over precious-metal membranes. Tesla's Semi, unveiled in November, has drawn the most widespread atten- tion, particularly outside the industry. Four months after the truck's high- profile unveiling, the company hasn't released its key specifications, such as horsepower and torque ratings, or the weight of its battery units, which could eat into payload capacity. Nor has it said if it's conducted fleet testing. Despite these unknowns, fleets have forked over hundreds of thousands of dollars to secure their place in line for Tesla Semis, hoping to be among the first to deploy the all-electric recharge- able Class 8 tractor. Tesla declined to be interviewed for this story, saying it's not prepared to pro- vide more detail than was shared at last year's unveiling. Private fleets including Anheuser- Busch, Walmart and Pepsi have ordered dozens of Semis at prices ranging from $150,000 to $200,000. For-hire fleets placing orders include J.B. Hunt and Ruan. Jim Cade, Ruan's vice president of fleet services, says his company's five- truck order stems from growing concerns over emissions – particularly should other states begin to follow California's lead of passing strict emissions regula- tions – and from a desire to get ahead of the competition. "This is a way to keep our options 2022 • Nikola ex- pects produc- tion of 1,500 trucks • Tesla predicts annual orders of 100,000 trucks OWNER-OPERATORS EYE ELECTRIC POWER Paul Terry, owner of and operator for the 30-truck fleet Paul Terry Trucking, reserved 100 Nikola One tractors after the truck was unveiled in November 2016. "I wish they were here right now," he says. "I want to quit paying the high price for diesel." Terry put down money for the Nikola reservations because he hopes to cut die- sel volatility out of his operational costs. Though diesel prices have stayed rela- tively tame in recent years, he believes they'll spike again, and the investment in the Nikola tractors will give him a leg up on competition should that happen. "I wanted to corner the market," he says. Terry reserved 100 – well above his current operational fleet – so he can resell them, should they become a hot commod- ity and availability become limited. Admit- tedly, however, he hasn't decided if he will buy the trucks or lease them, as Nikola's full-service lease is more appealing to him than purchasing them outright. His fleet operates in the 11 Western states, and he sees Nikola's hydrogen rig as the truck to beat in the electric mar- ket. "Until the truly electric trucks have onboarding charging systems to expand their operating range, I don't see how there's any other competition." Owner-operator Ken Bebout, who drives team with his wife, already has achieved a remarkable lifetime 9.4 mpg efficiency with the 2017 Freightliner Cascadia they drive, but he's still interested in adopting a Nikola. He hasn't placed a reservation but is watching the market. "If all the costs are the same, I would jump, no doubt," he says. Leased to Prime, he and his wife run 4,000 miles a week on dedicated routes from Texas to Ohio, Ohio to Denver, Denver to Memphis, Tennessee, and Memphis back to Texas. They considered the Tesla Semi, but "the recharge time and lack of a network" deterred them, Bebout says. "I believe it's better for the environment if we go to electric vehicles," he says. "I personally don't have a problem with stop- ping during my 30-minute break and re- charging my truck. But we understand one of the struggles is going to be putting the infrastructure in to charge the vehicles." Jamie Hadden, a heavy-haul owner- operator out of British Columbia, Canada, who "typically grosses out about 138,000 pounds," says he's interested in electric trucks. He also is concerned about range and the ability to haul heavy loads and operate in extreme cold. "I think the technology is viable," Had- den says. "I think they're ugly as sin, but they grow on you. They're quieter, cleaner and have lots of power." His stepdad was an industrial electrician, and he's seen firsthand the power that electricity can generate. "It's power on demand as long as you learn how to use them and work with them. I think the overall cost of op- eration will be lower with no oil changes, that type of maintenance. I don't know if they would work in my operation, but I would give it a go." Hadden foresees diesel as a fuel for specialized haulers such as himself but still feels that adopting electric trucks "would be a smart decision for anybody. Otherwise, owner-operators are going to get hurt in the long run," he says, should they be reluctant to switch from diesel. 2018 • Nikola to deploy first test units with partner fleets and complete two hydrogen fueling stations • Thor conducting testing with short-haul fleets 2019 • Nikola to complete 14 more fueling stations, expects 100 trucks in use • Tesla plans to deploy first Semis at yearend • Thor to enter full production and deployment 2020 • Nikola plans 50 more hydrogen stations 2021 • Nikola to pro- duce 500 trucks, expand fueling network