Which Companies are Leading the Charge in Electric Vehicle Trucking?

D.During the virtual climate summit, which began on Earth Day 2021, President Joe Biden stated that the US would cut its global warming emissions at least in half by 2030. On day two of the summit, Transport Secretary Pete Buttigieg highlighted his agency’s plans to resume harsh fuel economy standards for passenger cars, which happen to be one of the largest sources of greenhouse gas pollution in the country. To reduce this, Buttigieg is expected to propose new regulations that will help the switch to electric vehicles.

As of 2020, the Bureau of Vehicle Statistics found that there were 286.9 million vehicles registered in the US, while data from the Owner-operator-independent driver association (OOIDA) put the number of class 1-8 trucks at 33.8 million. For those unfamiliar with this categorization, it ranges from light to medium to heavy trucks. Quickly googling “corporate EVs” and we don’t see a shortage of companies attacking the EV for EV market opportunity, but what about the EV for EV?

According to OOIDA, trucks carried 11.84 billion tons of cargo in 2019 and large trucks traveled 304.9 million miles, more than 9% of the total vehicle miles traveled by motor vehicles. The thing is, medium and heavy trucks cause massive air pollution. In comparison, emissions from all-electric trucks are a fraction of those from diesel trucks. A 15 year life analysis This suggests that when compared to a Tier 3 diesel engine running at 2.5 gallons / hour for 6,000 hours per year, the estimated reductions from using electric vehicles are 25 tons of nitrogen oxide, 23 tons of carbon monoxide, and 1,200 kg of particulate matter 2,500 tons can be saved from carbon dioxide.

EV trucks offer other benefits, including fuel savings and lower maintenance costs, as electric motors have fewer moving parts than diesel and do not require multi-speed transmissions, which should reduce maintenance costs and improve reliability. Truck company Volvo AB (VOLVY) The electric trucks may be a cheaper means of transportation, partly due to regenerative braking, which recovers electrical power and slows the vehicle down, reducing the use of system brakes and reducing maintenance needs.

These large trucks, identified by their Class 8 designation, are predominantly built by Freightliner, Peterbilt, Kenworth, International, Volvo and Mack. In relation to public companies, Freightliner is owned by Daimler AG (I’m going) while Paccar (PCAR) is the company behind Peterbilt and Kenworth, and Navistar (ARE NOT) is the owner of International. Volvo AB is the company that owns both Volvo Trucks and Mack. While these companies are trying to capitalize on the electric vehicle market opportunity, much like it is doing Tesla (TSLA) looked to revive the car market, which is dominated by people like Ford Motor (F.) and General Motors (GM), Rivian is keen to do the same with the EV truck market.

Rivian earlier this year closed A $ 2.65 billion investment round that will support his efforts to bring multiple EV products to market, including the Amazon (AMZN) Commercial vehicles. Amazon and its Clima Pledge Fund are investors in Rivian. Tesla also wants to participate in the EV truck market with its Tesla Semi (Pictured above) and for individual owners or people associated with large fleets of trucks, Tesla takes Reservations for that today.

Meanwhile, Freightliner recently announced that its test fleet of 38 pre-produced electric tractor units had traveled 700,000 miles, and for the context that is 233 interurban trips between Boston and San Diego. Freightliner’s production of the Detroit ePowertrain is scheduled for the end of this year. Based on this milestone, the company expects to begin production of the eCascadia Class 8 and eM2 Class 6/7 trucks next year. Not to be outdone, Volvo recently announced that it had won an order for 14 of its electric vehicles from food company QCD.

While we wait for Secretary Buttigieg’s legal framework, we’d like to point out that over the past year more than a dozen US states signed a Memorandum of Understanding (MOU) to achieve the goal of about one in three commercial vehicles that to be sold emission-free by 2030 and 2030 By 2050, around 30 truck and related equipment companies announced their support for the Zero Emission Truck Coalition called for creating “a new five-year incentive to acquire ZET for $ 2 billion that will accelerate the production and deployment of tens of thousands of zero-emission vehicles in US truck fleets in five years.”

How these efforts align with Secretary Buttigieg’s agenda remains to be seen, but based on what we’ve seen in the U.S. and other countries, government subsidies have helped accelerate the adoption of electric vehicles for electric vehicles, and it lies It is obvious that large truck fleet operators would welcome them with open arms. Anticipation of the industry change, ABB LTD (FIG) announced In cooperation with Amazon Web Services (AWS), a cloud-based platform for EV fleet management will be created in the second half of 2021, which is intended to ensure business continuity for operators when they switch to electricity.

Compared to the EV car market, the EV truck market is still at a very early stage. Similar to the EV passenger market, some issues will need to be addressed in the coming years in order to accelerate the adoption of EV trucks. One such problem is the number of charging stations, particularly those that accommodate a number of large trucks and allow rapid charging. Investors who wish to follow progress in this area should keep abreast of developments in companies such as Travel Centers of America (TA) and Blink charging (BLNK).

The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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