Skip to main content

The Staggering Economics of the Tesla Semi

The economics of the Tesla semi show that it is about 83% cheaper to drive and haul goods than a standard diesel truck. Not to mention the reduction in cost due to less maintenance. The Tesla semi will truly disrupt the trucking industry.

The Staggering Economics of the Tesla Semi

The Tesla Semi is going to start deliveries this year and there is some staggering economics of how much better it will be than a diesel truck.

Elon Musk has stated that the Tesla semi will start shipping this year and that it will have 500 miles of range. This is after many delays, but Tesla is finally ready to start delivering it to customers. In Elon's Master Plan, Part 2, he made reference to building an electric semi.

The first customer of the Tesla semi is not known to the public yet. Some think it will be PepsiCo because they placed an order for 100 electric semi trucks. Tesla will build out Mega Chargers for the Tesla semi in order to make sure it can charge quickly.

The Economics of the Tesla Semi

If you look at average fuel prices and use the website for U.S. Energy Information Administration (EIA), you can see about how much it costs for a trip for a diesel truck on a highway per gallon of diesel fuel. This ends up being about $4.99.

If you use a distance of 200 miles, you can do a calculation with a miles per gallon around 6 and come up with about 34 gallons (at 5.9 miles per gallon). This is simply for the average diesel truck.

With some simple math, you can take 34 gallons * $4.99, which is $169.76 for the cost of fuel for that diesel truck. This equals about 85 cents per mile. The Tesla semi, which is an electric truck, can take that same load and move it 200 miles. With electricity, you must think about it differently.

We can use a 2 kWh per mile usage for the Tesla Semi even though Tesla says the energy consumption is less than that. This will make calculating more simple. If you take 200 miles * 2 kWh per mile, you get a total of 400 kWh consumed. Tesla can also provide an energy cost of about 7 cents per kWh.

You can then take that 400 kWh * $0.07 per kWh which equals $28 total for the 200 mile drive. This is about 14 cents per mile. With this you get:

* A diesel truck trip at 200 miles is $169.76
* A Tesla semi truck trip at 200 miles is $28.00

This is a savings of about 83% and the Tesla semi will have less wear and tear on its brakes, less maintenance due to having no engine and oil changes, along with being a source of clean energy.

For more information on this, you can see this Tweet thread by Alex Gayer:

Leave your comments below, share the article with friends and tweet it out to your followers.

Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Ryan Shaw, Screenshot

Comments

Asif (not verified)    August 14, 2022 - 9:59AM

In reply to by gary (not verified)

The thing to consider is the difference in 'distribution' vs 'generation' costs for electricity. The distribution cost (i.e. line maintenance) can be super high for residential. Actually, the main savings for home solar panels is that the distribution cost is just the wire going from your roof to your house. Otherwise, generation charges are a lot cheaper at scale.

Ms (not verified)    August 14, 2022 - 10:40AM

In reply to by gary (not verified)

Diesel is not "artificially expensive due to government policies".

It is actually expensive because the free market (thanks to capitalism) is driving up the price in response to a reduced supply.

Now, demand has gone done and supply has gone up accordingly and prices are dropping.

Joe (not verified)    August 18, 2022 - 1:53PM

In reply to by Ms (not verified)

Yeah, it is. The supply is being reduced by government policy. Making it harder for energy companies to produce and/or obtain financing is directly causing it. Go ahead and tell everyone which financial institutions will be investing in these companies....knowing the government is clearly wanting to do away with fossil fuels. You should probably get a grip on reality here.

Moxie (not verified)    August 14, 2022 - 10:50AM

In reply to by gary (not verified)

If it takes a 1000 pounds of batteries to drive a car 200 miles at 80 mph, the miles per pound of storages weight is .2 miles per pound.

At 20 mpg 10 gallons weighs , 65 pounds

3 miles per pound

Tires are wearing out fast.

There are long term environmental issues, what do you do when the a 1000 lbs of batteries? Clean air is great, clean water is greater.

Jesse Davisson (not verified)    August 14, 2022 - 3:16PM

In reply to by gary (not verified)

There are parts of the country that do not use fossil fuels for power generation, in those regions electricity costs very little. I pay 7.2 cents a kwhr in eastern washington where I live and in seattle where I work I pay 11 cents a kwhr for my apartment. There are areas close to dams in washington that dip below 4 cents a kwhr.

As green power installations age beyond their financed life span you can expect to see massive price drops. All those windmills that are going up all over the country have huge loans to finance their construction. Once those are paid off they will be able to massively undercut coal and gas plants. Granted they have to outlive their financing but more than likely many installations will.

Becky Weaver (not verified)    August 14, 2022 - 8:44PM

In reply to by gary (not verified)

It’s .09 a kilowatt hour in OR but it won’t matter because these are semi trucks, traveling cross country. Yes it’s going to cost more upfront. The gas is the issue, not the price of the vehicle. At 8mpg and $6/gal diesel, 50 gal = $340 for 400 miles. Now consider 60k miles/yr, do the math & theres your answer. 34k+17k= 51k gas vs charging station charge. Even if it was 20 bucks a day and the driver drove every single day of the year with no breaks, 365 x $20= $7300.

Edward (not verified)    August 19, 2022 - 3:50PM

In reply to by Becky Weaver (not verified)

You apparently don't know jack about truck driving. Average yearly miles is 130,000, not 60,000. Also the biggest problem I can see with this is the fact that it can only go 500 miles before it needs to recharge. My normal night is anywhere from 510 to 550 miles. If our company had these trucks, we'd be screwed.

Dave (not verified)    August 15, 2022 - 12:20PM

In reply to by gary (not verified)

Exactly! I pay $.32 a kilowatt hour at off-peak rates. I pay $.54 a kilowatt hour during peak. That would be more expensive than diesel even at $6.30 a gallon like it is around here!!

Matt B Schollmeyer (not verified)    August 15, 2022 - 9:51PM

In reply to by gary (not verified)

That's fucking expensive electricity. I guess costs have probably gone up but I thought ours was kind of high @ 13-15 ¢

Still 7 ¢ is pretty damn low.

Erondi Amorim (not verified)    August 16, 2022 - 6:37PM

In reply to by gary (not verified)

Well that all sounds fine and dandy until you have to do something with the most toxic thing on the planet battery acid what are we going to do when all these batteries become expired hopefully Tesla's thought this out because this seems to be a great way to go electric but it's a bad way to go when you have to dispose of the toxic battery waste hello

Erondi Amorim (not verified)    August 16, 2022 - 6:46PM

In reply to by gary (not verified)

Well that all sounds fine and dandy until you have to do something with the most toxic thing on the planet battery acid what are we going to do when all these batteries become expired hopefully Tesla's thought this out because this seems to be a great way to go electric but it's a bad way to go when you have to dispose of the toxic battery waste hello

Tyler (not verified)    August 17, 2022 - 8:23AM

In reply to by gary (not verified)

Agree with your on the 30 cents....maybe even more. Tesla super charger run at like 58 cents per kw during peak times.

Say they cost the same. The real saving is in maintainces. Trucks cost 10s of thousand maintain each year. Just picture saving 10 thousand per truck per year.

JB (not verified)    August 17, 2022 - 9:45AM

In reply to by gary (not verified)

Yeah excellent point, 7 cents / kwh is a joke. Fast chargers charge more than that, and even then PepsiCo will have to build its own charging infrastructure most likely which the capital and install cost will need to be spread out per mile. These electric trucks do a have a chance to be interesting but do us all a favor and don't write articles if you don't know what's what. Strips credibility from the idea of the electric truck.

William Mc Burney (not verified)    August 17, 2022 - 11:56AM

In reply to by gary (not verified)

All good variable's but they need to add the extra weight to the trucks taxable limits, and tire ware will suffer some to I would think. Theres the mountainous factor and colder temps your now Telsas owners state the batteries dont work as long in colder climes. Plus a maintained diesel will work for millions of miles so whats the cost to them giant batteries ? And they really think 50 million Wind and Solar stations will provide enough juice to run them and everything else well good luck with that. This whole brainwashing charade is about taxes & greed period. Common sense says have a little bit to everything and never throw the baby out with the bath water.

Gary A Pedro (not verified)    August 17, 2022 - 9:19PM

In reply to by gary (not verified)

I also don't understand the math. Electric rates here are from $0.35 - $0.47 per KWH depending on the time of day. If you do the math with those numbers it comes out about the same as diesel.

Marvin (not verified)    August 18, 2022 - 12:42AM

In reply to by gary (not verified)

Gary, you have only scratched the surface of the missing complexity that was not addressed in this article. A construction company bought an electric excavator, it works for 2 hours and has to charge for eight (sometimes using a diesel generator). How many years can one expect deep cycle batteries to last? Pretty sure that it will very greatly based on the Duty cycle of the truck. After completing 300 miles pulling 140,000lbs (Canadian weights) over the course of a fourteen hour day, How long will it need to charge before it can complete another trip? How long will that battery last before needing replacement? At what cost? Will they be available or will it be like current used leaf and tesla car market where the cost of replacement batteries exceed the remaining economic value of the vehicle? So have you taken into account the disposable nature of the semis being created? This entire article is a non-sequetor, however the comment regarding government making fuel artificially high, As a Canadian paying a carbon tax, is the entire goal of the Idea of a carbon tax. So for the comment in the thread saying that part of the comment is non-sequetor is disingenuous at best.

ChuckS (not verified)    August 19, 2022 - 9:39AM

In reply to by gary (not verified)

Ok, I live and have worked in the Rockies mountain states all most of my life, that being said, just how good is their calculations for pulling 80,000# over our high mountain passes, on 5 to 20% grades? My Peterbilt with a Cat and 15 speed, 3:76 drives got 4.5 mpg in the Mtn’s, and 6.5 to 7 on the flat country.
Just curious, most cars/trucks are tested under optimal conditions on a flat track somewhere, I would like to see data on real life comparison.

sloride (not verified)    August 20, 2022 - 10:54AM

In reply to by ChuckS (not verified)

It has been my greatest concern as well wondering just how well the electric truck is going to scale the mountains. I find it hard to believe that they will pull a 7% or greater grade toting a full load of 80,000. I've been a trucker for 32 years and I have a great deal of common sense all adding up to me calling electric trucks BS. If the guvment really wanted to address the emissions problem they should begin with fixing the stupid log book rules that has everyone stopped at the same time of the day. Also get rid of blanket laws one size fits all rules for hours of service. I myself don't get tired after 10-11 hours while others are tired after 6 hours. We are human not machines that have a switch to turn on and off.

Bill m (not verified)    August 23, 2022 - 11:54AM

In reply to by sloride (not verified)

If you have been driving that long then you are aware of crossing the Sierra on I 80 in the winter..
15 years at cal Trans and working on that mountain tells me it's not gonna work!!@

James (not verified)    August 13, 2022 - 1:45AM

Sure, cost to operate is cheaper.

But Tesla Semi is twice as expensive as average diesel Semi Truck. Gotta also factor in amortized cost of the truck to start.

It’s more economically important to ask: What’s the difference in payback time between diesel and electric semi-trucks?

Brandon (not verified)    August 14, 2022 - 8:12PM

In reply to by James (not verified)

It's all about operating cost on industrial equipment. You finance the object and if your running costs (which are the majority of your monthly costs) go down to a tenth of what they were but you pay double for the loan you're well in the black. These will sell like hotcakes. Burning expensive fuel is dumb even if the dirty old truck doing the burning is cheaper. It's a new world.

Leonardo Galera (not verified)    August 15, 2022 - 2:12AM

In reply to by James (not verified)

I'll be very conservative on numbers, and you'll see how the eletric truck will be way cheaper than the Diesel over the time (considering everything that was said is true): 400 miles per Day in a 5 days week=total ~8.000 miles month X12 96.000 miles. If you do the calcs, only on fuel is a saving over $50k year. Insurance probably Will be higher, but Services Will be cheaper... this truck Will be at least $50k cheaper to operate than the diesel. Here in California it's impossible to find Diesel for Less than $6 gal, Plus the tax credit for buying EV, it's a huge advantage and If this truck works as announced I fear the small companies and O/O will be pushed out of business.

Edward (not verified)    August 19, 2022 - 3:57PM

In reply to by Leonardo Galera (not verified)

Your logic fails when the driver routinely drives over 500 miles per day. Hell let's look at more math. Cross country driver: 70mph, 11 hours of drive time. That's 770 miles he can, and will, cover in a day. Until these electric vehicles either A, have that kind of mileage on one charge, or B, charge as fast as a diesel pump, they will never become mainstream.

Michael baird (not verified)    August 15, 2022 - 5:13AM

In reply to by James (not verified)

A couple things to consider that are inevitable,is the future removal of the insane global logistics of battery raw materials once a closed loop recycling system is in full swing, already beginning now,and wrights law applied to manufacturing.
Cheers Mike

Kelland (not verified)    August 13, 2022 - 8:57AM

The curb weight of the truck, as well as the loss in productivity due to the relatively short distance this thing can travel between charging needs to be factored as well. Not to mention the cost of the infrastructure to build the charging stations which is astronomical. This thing won't be practical for 90% of the fleets out there.