Walmart Triples-Down on Tesla Semi Reservations

Rob Maurer

Walmart Canada has announced an order for 90 additional Tesla Semis ahead of the vehicle's launch, bringing their total order quantity up to 130. This is the second increase by Walmart Canada, following a 30 vehicle addition in 2018 on their original 10 vehicle order.

The decision comes shortly after Walmart Canada's announcement of a $3.5B investment aimed at increasing growth and improving customer experience, as well as Walmart's global goal of reaching zero emissions by 2040 which was announced earlier in September.

"Tripling our reservation of Tesla Semi trucks is part of our ongoing effort to innovate the business and prioritize sustainability," said John Bayliss, Senior Vice-president, Logistics and Supply Chain of Walmart Canada. "By converting 20 per cent of our fleet to electric vehicles by the end of 2022 and committing to alternative power for all fleet vehicles by 2028, we are putting safety, innovation and sustainability at the forefront of our logistics network."

The 130 truck order represents a fairly small amount of potential revenue for Tesla — likely around $26M — but is an important opportunity to prove the viability and potential costs savings of an all-electric semi.

The increased order also demonstrates progress in the relationship between Tesla and Walmart. Last year, tensions surfaced when Walmart (US) sued Tesla in relation to several fires occurring at Walmart locations which had Tesla's solar systems installed. The two companies eventually settled the case.

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Disclosure: Rob Maurer is long TSLA stock and derivates.