California Incentives Support Tesla Semi Sales in State

The vouchers reduce the purchase price of the Tesla Semi by $120,000. The Semi is priced between $250,000 and $290,000 depending on range. The state announced an additional $1 billion in funding for zero-emission trucks on May 13. Buyers can combine the vouchers with funds from the Clean Fuel Reward Program and other local incentives.

These combined incentives can cover up to 90 percent of the purchase price for small fleet operators.

Dan Priestley, who manages the Tesla Semi program, said at the ACT Expo conference this month that California will be an early market for the trucks because the economics are strong. He noted that $200 million in HVIP funding remains available for California fleets.

Priestley also said Texas and states in the Southeast are expected to be strong markets. Lindsay Buckley with the California Air Resources Board said heavy-duty vehicles contribute significantly to local air pollution near ports and freight hubs. The programs aim to accelerate adoption of zero-emission technology.

Ann Rundle, vice president of ACT Research, said California offers more generous and better-funded subsidies than other states.

Diesel prices have risen from $3.81 per gallon on February 23 to $5.63 per gallon on May 18, according to the U.S. Energy Information Administration. In California the price reached $7.32 per gallon. The increase has made electric trucks more competitive on operating costs.

WattEV, a Long Beach company, placed the largest single order with 370 trucks valued at about $100 million. Other fleet operators including Costco, Ralphs, US Foods and Swift have received vouchers for Tesla Semis. Amazon, UPS and FedEx have not yet placed orders based on current voucher data.

Tesla began production of the Semi in Nevada in April. The company has stated it will be able to supply up to 50,000 trucks annually at full production.