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Pepsi CEO Expects Tesla Semi-Truck Delivery This Quarter

'I don’t want to promote anybody, but that’s the brand we’re using so far. And we’re getting our first deliveries this Q4,' he said.
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PepsiCo  (PEP) - Get PepsiCo, Inc. Report expects to receive electric trucks from Elon Musk’s Tesla  (TSLA) - Get Tesla Inc Report this quarter, the food and beverage titan’s CEO Ramon Laguarta said Monday

“Transportation is about 10% of our overall gas emissions, so it’s important and we’re working on different solutions,” he told CNBC.

“We replace our fleet regularly, every 10 years more or less, ... and we’re already starting to buy electric trucks actually from Tesla.

“I don’t want to promote anybody, but that’s the brand we’re using so far. And we’re getting our first deliveries this Q4.” 

He didn’t specify the number of trucks.

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Pepsi first announced it was buying 100 Tesla Semi Trucks nearly four years ago, CNBC reports.

Tesla was supposed to begin making the trucks in 2019, but delays ensued. Tesla CEO Musk said this July that Tesla will delay Semi production until next year, because of supply chain disruption and limited battery supply.

Pepsi closed at $162.43 Monday, down 2%, but has risen 5% for the last three months.

Morningstar analyst Erin Lash puts fair value at $154 and assigns the company a wide moat.

“The strength of PepsiCo’s brand intangible assets was on display in the third quarter, as organic sales popped 9%, on top of 5% growth in the year-ago period and up more than 13% from the pre-pandemic period in 2019,” she wrote last month.

“However, profits cooled in the period, as supply chain disruptions and inflationary headwinds, combined with recent acquisitions of lower-margin businesses like Pioneer Foods in Africa, took a toll.”