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

Bradley Barber (not verified)    August 14, 2022 - 10:06AM

In reply to by Kelland (not verified)

I drive am automatic Freightliner class 8 tractor. I have slowed my speed to 62 and get 7.5 MPG carrying 76-78,000 gross weights. I stay away from NE and Western states due to mountains, tolls, cost of diesel fuel - all the things in this greatly affect performance of tractors.... Put a Tesla in the mountains with 78,000 lbs gross as my load of Pepsi is right now and watch if it can pull for 200 miles - I assure you it cannot due to battery drain... New business idea is put a gas fueled charger on a truck to he recharge these tractors and haha electric cars and trucks to make a financial killing.

Bart (not verified)    August 16, 2022 - 11:21AM

In reply to by Bradley Barber (not verified)

Hey, Bradley. Question... when you're going down hill in the mountains, how much diesel does your Freightliner take out of the air and put back into your tanks?

Danny Kelley (not verified)    August 17, 2022 - 12:29PM

In reply to by Bradley Barber (not verified)

It takes 2 mechanical horsepower to make one electrical horsepower
They are conning all of us
Unless you use renewable energy it will never be cheaper

Brandon Allen (not verified)    August 14, 2022 - 8:15PM

In reply to by Kelland (not verified)

It's not about the fleets it's about the routes. Fleets do need to be long range capable but I think, like regular cars, the majority of miles driven are short trips well within range of a single charge per day. So fleet operators with a standard mix of short and long range hauls will probably end up with a majority electric trucks and keep some internal combustion ones for the longer hauls. But even those will lose out. Crew rests are important and it's so hard to keep good drivers, if your fuel costs are a tenth of what they were before you can afford to pay your driver's more, give them more time to make the drive and charge and still save money. Argue all you want but trains are way slow and they still make sense.

Jf (not verified)    August 14, 2022 - 11:56PM

In reply to by Kelland (not verified)

90% of trucks do less than 500mi per day. Sure it may not be ideal for long haul, but for most routes, 500 miles is about perfect.

One thing they do not mention in the article is how much better these will be for off-highway driving. The extra torque, no shifting, possibly even one pedal driving, should all make this ideal for hub to spoke delivery routes where range is a minimal concern and the real benefits of electric motors can shine.

Tarzan (not verified)    August 15, 2022 - 1:27PM

In reply to by Kelland (not verified)

Relatively short distance.... my guy, 500 miles is no short distance. The average driver won't hit 500 miles in their entire shift. Maybe trucking in the mid-west across the plains sure, but not for 80% of America. 90% of my driving days were around the 500-mile marker(thanks to regs). These are fantastic for local-regional companies with the flexibility to go far if needed.

Brett (not verified)    August 13, 2022 - 9:55AM

Look I'm all for Tesla but saying its a source of clean energy is a total lie. The energy came from somewhere and most likely its from the grid which is oil and gas. At a private business that can provide it with solar then its a different story but if you get it from the grid its just cheaper then fuel but probably made from it as well.

raul (not verified)    August 13, 2022 - 6:09PM

In reply to by Brett (not verified)

i dont know why everyone keeps making reference to where the energy comes from....u have to keep in mind also thats less engine oil, transmission oil, AND less fuel for both the trucks that have to haul the fuel and passenger cars that has to be processed by said factories for a vehicle which in turn could be used for energy production , ALSO instead of emissions from both the plant and the millions of ice cars,its only the plant...which IMO is still the right path

Bryan (not verified)    August 15, 2022 - 6:53AM

In reply to by raul (not verified)

The plant has to produce enough power to operate any electrical device. If all of our vehicles were EV's the fossil fuels consumed by the power plants would be at least 5% more than currently used due to line loss. Unless solar, hydro, and wind are greatly increased this makes little sense.

Lakin Moser (not verified)    August 13, 2022 - 8:06PM

In reply to by Brett (not verified)

I'm sorry, but this is one of the most bafflingly non-sensical anti-EV talking points out there so I'm calling you out for it.

First, the grid's energy sources can change. They actually are, and quickly. Coal and petroleum use in the power grid have plummeted in the last 15 years.

Second and MUCH more importantly: if we roll out cars and charging infrastructure first, and we fix the power grid second, then the problem is solved. If we fix the grid and then adopt EVs and roll out infrastructure then we are *still 15+ years away from solving the problem,* because that's how long the gasoline cars we sell today will last on the road.

If we stop selling gas cars today, the free market will handle the charge infrastructure and we can pressure government to do something about the grid. We can start a 15 year clock until the day that gas cars are a hobby for vintage performance enthusiasts, and nothing more. If we wait until conditions are perfect for mass adoption, we we'll be waiting for longer than we have to solve this.

Matt Fischler (not verified)    August 15, 2022 - 1:12AM

In reply to by Lakin Moser (not verified)

Ya. Electric is the answer.
And I hope people don't start talking about hydrogen again.
The ICE vehicle can already burn hydrogen, just like it can burn "unnatural" gas (methane).
Did it ever happen. No. It's BS
ELECTRIC CAN MAKE IT HAPPEN.

Reid (not verified)    August 14, 2022 - 3:01AM

In reply to by Brett (not verified)

This thing isn't a *source* of electricity at all. That comment by the article's author is the dumbest thing I've ever heard.
If you look past that to perhaps what the author *meant*, I agree that the original source of the energy is likely coal or some other other fossil fuel and this makes these semis - like most electric vehicles - not entirely clean. That said I think it's easier to scrub the emissions of one coal plant than it is to scrub the emissions of 1,000,000 ICE vehicles, so likely electric vehicles are still an environmental improvement.

Corey YIlmaz (not verified)    August 14, 2022 - 7:07PM

In reply to by Brett (not verified)

That's all been factored in already
Basically a car gets 30 miles a gallon and a model 3 gets120 miles equivalent
The grid providing electricity is much more efficient than burning the same gas in your engine. I see what you're saying but it still doesn't change the equation and eventually the grid will become 100% renewable and is shifting every year away from coal

Matt Fischler (not verified)    August 15, 2022 - 1:05AM

In reply to by Brett (not verified)

It's still 3-4 time more efficient to run from electric than fossil fuel because electric conversion from the power plant to an EV is still 60% and diesel burning trucks are only 15%.
And when the grid is completely solar or wind powered the harm will disappear.
Can't make fossil fuels from thin air like solar and wind can.

Jeff L Kircher (not verified)    August 15, 2022 - 8:41AM

In reply to by Brett (not verified)

You should include the environmental impact of producing the batteries and disposing them at the end of their life. They are made of poisonous lead and battery acid. When you replace a battery pack you're going to pay a hefty disposal charge.

James S McKinnon (not verified)    August 16, 2022 - 7:26PM

In reply to by Jeff L Kircher (not verified)

Point taken but... there's no lead in a lithium ion battery. Only conventional combustion vehicles use lead acid batteries. A lead acid battery that could power a truck might be bigger than the truck!

John mcnamara (not verified)    August 17, 2022 - 1:42PM

In reply to by Jeff L Kircher (not verified)

First, There is no cost to getting rid of lead acid batteries. There is actually a great market in selling and reusing them. Second, lithium batteries don't have any lead or acid. There is not yet a market on reprocessing them though.

Jamie e (not verified)    August 13, 2022 - 10:12AM

Nope, it's a gimmick. Once you get enough batteries in it to handle the distance a semi needs to be competitive, the load capacity is under 4tons compared to 19tons for a ice truck. No long haul company in the US will go near this thing with that restrictive of capacity. Tesla had deliberately refused to state the hauling capacity because they know nobody wants it with the specs it has. And they're no way around this unless lithium batteries can somehow gain 4x energy density.

Lakin Moser (not verified)    August 13, 2022 - 8:49PM

In reply to by Jamie e (not verified)

It's not a long-haul truck and has no plans to be. For short haul, however, it's so clearly superior to fossil fuels. Short haulers spend as much time in loading bays as they do on the road, and always return to a home base distribution hub. Retrofit those hubs with charging infrastructure, and you never have to stop your trucks for fuel--you can just plug them in as they load.

I don't expect to see long haul electric capabilities until high-capacity structural battery technology matures or until someone designs a truck with hot-swappable batteries and rolls out a nationwide feet services battery swap network.

Kenneth Hilbert (not verified)    August 14, 2022 - 4:25PM

In reply to by Lakin Moser (not verified)

I am a truck driver if we don't haul 46000 lbs we get docked money if you are hauling less weight it means more trips, we have a shortage of drivers less productivity economy slows down

Ted (not verified)    August 14, 2022 - 6:16PM

In reply to by Jamie e (not verified)

19 tons? I regularly haul 26+ tons! At 19 tons I'm basically half loaded. My boss would be out of business in a month if that's all I could move much less the 4 ton capacity of the Tesla. Jeez a dually can legally scale 8x that much.

Ted (not verified)    August 14, 2022 - 6:20PM

In reply to by Jamie e (not verified)

19 tons? I regularly haul 26+ tons! At 19 tons I'm basically half loaded. My boss would be out of business in a month if that's all I could move much less the 4 ton capacity of the Tesla. Jeez a dually can legally scale 8x that much.

Lou Christo (not verified)    August 15, 2022 - 9:57AM

In reply to by Jamie e (not verified)

In response to your comment no long haul company will buy the Tesla. I know for a fact, both JB Hunt, and Walmart have orders in for them. I have been in them, back when they showed them at JB Hunt Corporate where I worked in the office at the time.