United Parcel Service Inc said on Tuesday it is buying 125 Tesla Inc all-electric semi-trucks, the largest order for the big rig so far, as the package delivery company expands its fleet of alternative-fuel vehicles.

Tesla is trying to convince the trucking community it can build an affordable electric big rig with the range and cargo capacity to compete with relatively low-cost, time-tested diesel trucks.

The Tesla trucks will cost around $200,000 each for a total order of about $25 million.

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Tesla is trying to convince the trucking community it can build an affordable electric big rig with the range and cargo capacity to compete with relatively low-cost, time-tested diesel trucks

ORDERS BEGIN TO PILE IN FOR SEMI-TRUCK While Tesla said it will not provide a tally for orders it has received, a Reuters tally found that Tesla has at least 410 in hand, including: DHL Supply Chain, which provides transportation, warehousing and distribution services for U.S. manufacturers and retailers, ordered 10 trucks to test at customer facilities in major U.S. cities

Fortigo, based in Etobicoke, Ontario, ordered one Tesla Semi with a down payment of about 26,000 Canadian dollars (U.S. $20,290), with a balance due of under U.S. $181,000 when the Tesla is delivered

PepsiCo Inc has reserved 100 of Tesla Inc's new electric Semi trucks

Budweiser beer maker Anheuser-Busch has reserved 40 Tesla Inc all-electric Semi trucks, citing savings on fuel and emissions

United Parcel Service Inc said it is buying 125 Tesla Inc all-electric semi-trucks, the largest order so far Tesla has also received pre-orders from such major companies as Walmart, fleet operator J.B. Hunt Transport Services Inc and food service distributor Sysco Corp Advertisement

UPS expects the semi-trucks, the big rigs that haul freight along America's highways, will have a lower total cost of ownership than conventional vehicles, which run about $120,000.

Tesla has received pre-orders from such major companies as Walmart, fleet operator J.B. Hunt Transport Services Inc and food service distributor Sysco Corp

Prior to UPS, the largest single pre-order came from PepsiCo Inc, for 100 trucks.

UPS said it has provided Tesla with real-world routing information as part of its evaluation of the vehicle's expected performance.

'As with any introductory technology for our fleet, we want to make sure it's in a position to succeed,' Scott Phillippi, UPS senior director for automotive maintenance and engineering for international operations, told Reuters.

Phillippi said the 125 trucks will allow UPS to conduct a proper test of their abilities. He said the company was still determining their routes, but the semis will 'primarily be in the United States.'

Tesla will provide consultation and support on charging infrastructure.

'We have high expectations and are very optimistic that this will be a good product and it will have firm support from Tesla to make it work,' Phillippi said.

The UPS alternative fuel fleet already includes trucks propelled by electricity, natural gas, propane and other non-traditional fuels.

About 260,000 semis, or heavy-duty Class-8 trucks, are produced in North America annually, according to FTR, an industry economics research firm.

Including the UPS order, Tesla has at least 410 pre-orders in hand, according to a Reuters tally.

UPS expects the semi-trucks, the big rigs that haul freight along America's highways, will have a lower total cost of ownership than conventional vehicles, which run about $120,000. File photo

Navistar International Corp and Volkswagen AG hope to launch a smaller, electric medium-duty truck by late 2019, while rival Daimler AG has delivered the first of a smaller range of electric trucks to customers in New York.

Tesla unveiled its semi last month and expects the truck to be in production by 2019.

PepsiCo previously held the largest order, when the firm reserved 100 of Tesla Inc's new electric Semi trucks earlier this month.

THE TESLA SEMI Tesla has begun accepting preorders for its electric truck - and revealed it will cost buyers at least $150,000, with production set to begin in 2019. For those who want their truck in a hurry, a special 'founders series' is being made, with $200,000 required up front to get one of the first 1,000 made. The truck can go up to 500 miles at maximum weight at highway speed, Musk said. Diesel trucks are capable of traveling up to 1,000 miles on a single tank of fuel. The Tesla Semi can also go from 0 to 60 miles per hour in five seconds without cargo or reach 60mph in 20 seconds at the maximum weight allowed on US highways of 80,000 pounds. Advertisement

The maker of Mountain Dew soda and Doritos chips seeks to reduce fuel costs and fleet emissions, a company executive said last week.

Early orders of Tesla's truck reflect uncertainty over how the market for electric commercial vehicles will develop.

About 260,000 heavy-duty Class-8 trucks are produced in North America annually, according to FTR, an industry economics research firm.

PepsiCo's 100 trucks add to orders by more than a dozen companies such as Wal-Mart Stores Inc, fleet operator J.B. Hunt Transport Services Inc, and foodservice distribution company Sysco Corp.