Walmart Says It's Preordered 15 of Tesla' New Semi Trucks (theverge.com)

Soon after Tesla unveiled its new electric Semi Truck and Roadster 2.0, Walmart says it has preordered 15 of the trucks. The Verge notes that the deal was "likely in the works before Tesla unveiled its new truck to the public." From the report: The pilot is planned for the U.S. and Canada. Five of the preordered vehicles will be for Walmart's U.S. business, and 10 will be for its Canadian routes, the company said. Walmart's fleet has about 6,000 trucks. "We have a long history of testing new technology -- including alternative-fuel trucks -- and we are excited to be among the first to pilot this new heavy-duty electric vehicle," the company said in a statement. "We believe we can learn how this technology performs within our supply chain, as well as how it could help us meet some of our long-term sustainability goals, such as lowering emissions." Musk said the truck would enter production in 2019. JB Hunt Transport Services, a 56-year-old company based in Arkansas, also reserved "multiple" new Tesla trucks as well.

Comments

What is the delivery time frame?

[Jzanu]

Walmart has money to burn because they don't actually buy inventory until its sold at the register/cart level. Every other business faces requirement for predictable delivery on capital equipment purchases, largely because it all must be put into use quickly to break even as an option to better than the alternatives.

Re:What is the delivery time frame?

[Jzanu]

Suppliers pay Walmart for shelf space for greater retail distribution, they own items on shelves until purchased by customers then Walmart uses EDI systems to purchase from supplier and pocket revenue difference.

Re:What is the delivery time frame?

[tlhIngan]

Walmart has money to burn because they don't actually buy inventory until its sold at the register/cart level. Every other business faces requirement for predictable delivery on capital equipment purchases, largely because it all must be put into use quickly to break even as an option to better than the alternatives.

That is actually less true today than ever before. Walmart is just one of many companies who adapted to the Amazon effect by becoming real estate moguls and renting out the store shelves.

Basically a lot of stores now do consignment supply - the vendor supplies the goods to the store, and the store only pays the vendor when the good is actually sold, minus a store cut.

You might also see this termed as "Vendor Managed Inventory" - because it's the vendor who is providing the store stock. This is also coupled with contractual store rentals where companies may rent aisles of the store. This is easily seen when going to the electronics department, and looking at video games. You'll notice there are separate aisles of Microsoft, Nintendo and Sony - each of these companies has basically contracted with the store to rent a certain amount of space. The store must provide the rented space, even though it seems silly. You may see racks and racks of empty shelves - or perhaps an entire rack is filled with a single game, 1 copy deep. This is because the rack is rented, and even if there's nothing to fill it, it still belongs to the renter. Employees often shuffle items to fill the racks because empty racks are ugly. Its also why for example there was an empty rack for PS Vita stuff - Sony dictated that rack was for PS Vita, and even though the Vita is dead, the store is obligated to maintain it.

Of course, you see that say, the PC Games section in the same store is non-existent - because that's actually the store's owned rack, so that's whatever games the store deems will sell and justify that rack's presence. Unless a big PC game publisher comes and rents a rack (which does happen, in which case it's filled with that publisher's games) the store's own inventory typically pales in comparison.

You might find the stores are often willing to price match online stores in this case as well - since the vendor is paid whatever the price is minus a store cut, if the store matches the online price, the vendor is paid less.

Note this applies to the big national chain stores. Mom and Pop stores still have to buy their inventory like normal, and rarely do vendors actually request to rent some space

Re:Hate Tesla

[AmiMoJo]

I have mixed feelings about Tesla.

On the one hand, the technology is cool, the cars are amazing and Musk has done more than any other individual to push electric vehicles forward. I might buy a Model X next year, in fact.

On the other hand, Tesla is selling full self driving as an option ($3000) to be delivered by firmware update at some indeterminate point in the future. They already massively exaggerated what their current Autopilot can do, their current AP2.0/2.5 hardware hasn't even reached feature parity with the old 1.0 hardware, and if you were to start a lease on a new Tesla today there is a good chance you would never actually see FSD before handing the car back.

Re:Why Hate Tesla

[geekmux]

Because they're subsidized out of our wallet.

Tell me again how the Too-Big-To-Fail competition is still alive today? How quickly we forget about fucking bailouts. This excuse is growing old and tiresome. You may boycott Tesla, but are a shitload of subsidized industries which you probably continue to support every day by buying their products. Start putting your wallet where your mouth is.

Tax breaks for rich people sit poorly with the working class.

Not having "gasoline" in your budget and emissions pollution your lungs are breaks Musk is trying to deliver to you and the rest of the planet, along with breaks in your electric costs (solar), and in other tax-funded programs (NASA). By comparison, at least there seems to be a return on my "subsidized" investment.

Re:Hate Tesla

[darthsilun]

Hate Tesla? Or Musk? I dunno about hate. I think the fanbois who are trying to hold him us some kind of real life Tony Stark are silly. As far as I know he's just an idea man and doesn't have any real engineering creds. I don't believe he could build his way out of wet paper bag – he hires people to do that for him.

He got lucky wrt getting rich and I'm glad he's putting that money to good use.

I don't think he's winning any brownie points with the way he's dealing with labor issues at the Tesla factory.

Re:Not getting the naysayers

[geekmux]

Learn to read better. The economic conditions required for large tractor trailer style trucks to be the best options must be satisfied or there are cheaper options.

Speaking of reading, the Tesla post from yesterday stated that 80% of US truck routes are 250 miles or less. That is well within the range of the Tesla solution, which was probably a justification to build the damn thing. Today, there are over 130 million trucks registered for commercial use in the US (not including personal trucks which are considered SUVs by DOT).

They can be used but it is not the most efficient cost effective option, and in business controllable costs must be minimized or you will not last long.

Mega-corps are becoming a rather dominant force in business, and those mega-corps build mega-stores. The kind of stores that justify larger truck haulers. When you provide an all-electric option with a million-mile warranty, that tends to be one hell of a justification for those "business controllable costs."

Re:Hate Tesla

[AmiMoJo]

Did I mention that their current hardware doesn't even do basic stuff like auto rain sensing and 360 degree cameras. The Model X is an amazing car in many ways, but also lacks stuff that is standard on cars costing 1/5th as much. The promises of firmware updates that take years to come are not a substitute.

It makes me wonder how many engineers they have working on it when they can't get this basic stuff finished.

Re:Hate Tesla

[Anonymous Coward]

As a Model S owner, I have mixed feelings as well.

The car is incredible. I've driven 80k+ miles since 3/2014 and it drives as good now as on it's first day. No degredation of the battery, acceleration is still like a rocket, and the only things that broke down were a single tail light and something to do with the windshield wiper fluid (maybe the line was clogged). All of which was covered by warranty. Still on the original brake pads. Tires wear out, but so far they're covered by Michelin tire warranty.

On the other hand, they definitely need more software engineers working on the screen apps. There are easy things they should be able to add to the navigation and music apps that I've been waiting literally years for.

They said the focus on the software side is autodrive, but along the way they should at least give us some easy/visible upgrades.

Re:Hate Tesla

[Kjella]

Well it's refreshing to have a CEO that actually dares to have big, bold, idealistic visions. And by that I don't mean someone like Jobs who'd hype their current product but you'd have no idea where Apple was going 3-5 years down the road. In fact, the stretch goals are so high and so far out he doesn't run the risk of running into the Osborne effect but are more like guiding stars than any actual plan or roadmap.

I mean the marketing pamphlet for SpaceX could have read "Providing cost efficient satellite and ISS launch services through refurbished rockets" if it was run by a bean counter. Instead it's like "We want to build a BFR and colonize Mars", that's the vision. Somehow he's made it a success story to make some impossible goal and then coming up short is expected. Like now it's months of turn-around time to relaunch a "flight proven" rocket, he says lets do it in 24 hours. He's relaunched a rocket once, he says we'll make rockets that launch hundreds of times.

I think in terms of getting a team together and solve the engineering difficulties it's great. Why are we doing this, to shave a few bucks of NASA's budget? Nah. And we're not going to design something that's fundamentally unworkable for the long term goal, maybe we need a stopgap solution but we're stretching for that Formula One pit stop. Few things bring out such smug geek/nerd satisfaction as pushing the boundaries and announcing "They said it was impossible, so we did it".

For the customers though, I'd say Musk's companies are notoriously unreliable company with timelines and grand designs and promises that aren't really grounded in reality. If their current products do what you want them to do, by all means go ahead and buy it. But if you're waiting for something that's on the roadmap don't hold your breath. I got suckered into that Model 3 hype and pre-ordered... and then I started thinking WTF I'm waiting years for a car I know hardly anything about on a schedule I can't control, then I canceled. I decided I'd rather pick from the cars that are on the market when I need it.

Re:List of usernames that should be banned

[Applehu Akbar]

The following users should be banned from posting...

Says the user with no visible posting history.

Re:kids dying in the middle East the biggest subsi

[drinkypoo]

The *ultimate* subsidy is the US sending our kids to die in the middle East, due to oil. There's no way gulf war I happened if some sub Saharan country invaded another resource poor country.
[...]if musk can show we might be able to wean the US offa oil, I'd much rather subsidize that then our children getting killed by an IED.

Here's the problem: we already have the technology to replace 100% of our transportation fuels with biofuels from algae. You use solar thermal heat pipes to move seawater into the desert, and then grow algae on thermal raceways with solar paddlewheels. The lipids become green diesel and the remainder is processed for Butanol. Unfortunately, green diesel use actually went down due to the EPA's reduction of the renewable fuel requirement in 2014 (and through to today) although the EPA blamed it on "Limitations in the ability of the industry to produce suffcient volumes of qualifying renewable fuel, particularly non-ethanol fuels" — though this is a completely transparent lie, since they were making more before the EPA cut back the target. As for Butanol, we would have been able to buy it already if not for a patent dispute between Gevo and Butamax. The patent in question was developed in part at a public university, therefore it was developed in part with our money, but it is held by BP and DuPont's shell company Butamax who has been suing Gevo for years to prevent them from selling us Butanol fuel.

So yeah, go Musk, go EVs, but we are not using petrochemicals to fuel our vehicles because we have to. We are doing it because Big Oil is a branch of government, lying betwixt Congress and the rest of society.

Re:Hate Tesla

[Octorian]

Yeah, they seem to focus on software updates that make for good press releases, but don't give a damn at stuff that would only be noticed by everyday drivers.

There are bugs in the whole media player software stack that enrage me every time I drive the car. I don't even know whose ear to yell into about them anymore, because they simply don't care. (And if you mention on forums, you get drowed out by 50 pet feature requests to the point that actual bugs get lost in the noise).

Thankfully, these are really the only actual issues I have with the car. Everything else about it is wonderful, and its kinda hard to go back to an ICE car after driving one.