The Environmental Protection Agency (EPA) recently finalized stringent greenhouse gas (GHG) standards for medium and heavy-duty trucks from model years 2027 to 2032.
Inputs that matter: According to the EPA, the transportation sector is the most significant contributor to carbon emissions in the United States.
- Currently, nearly 13,000 electric medium and heavy-duty trucks are on the road.
- The four largest private tractor fleets in the nation, PepsiCo, Walmart, Sysco, and U.S. Foods, heavily invest in electric trucks.
- Daimler, the largest heavy-duty vehicle manufacturer in the U.S., aims to sell entirely carbon-neutral vehicles by 2039.
The opportunity: Analysts at S&P Global Commodity Insights have predicted that global crude demand will increase by 1.4 mb/d in the current year.
- Much of this oil goes into the supply chain, fueling ships, trains, and trucks.
Zoom in: GlobalFleet reports, "While Ford generated huge profits in 2023, the company's E.V. segment reported a $4.5 billion loss, and G.M. is not expecting earnings in the E.V. segment until 2025."
- G.M. postponed opening its second electric truck plant in Michigan to 2025.
- So far, PepsiCo is the only commercial customer of Tesla's Semi truck with "two different types of routes: long-haul routes that transport between 250 and 520 miles per run and with a gross vehicle weight plus a load of up to 82,000 lbs."
Between the lines: Tesla is the largest seller of carbon credits in California.
- Since 2009, the automaker has made over $9 billion from carbon credit sales.
- In 2023, Tesla generated $1.79 billion in regulatory credit revenue.
- These credits are sold to their fossil fuel competitors.
Follow the money: Interest rates may be to blame for the slow start for U.S. automakers.
- Seeking Alpha explains that renewable energy is capital intensive, and as interest rates soar, those funding these projects look for alternatives with faster return on investment.
- While referring to energy projects, the same holds true for public corporations responsible for shareholder returns.
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Read More
- https://carboncredits.com/new-epa-ghg-standards-for-trucks-to-cut-60-emissions-by-2032/
- https://www.cbtnews.com/how-tesla-is-banking-billions-in-regulatory-emissions-credits/
- https://banananomics.co/oil_keeps_rising
- https://www.globalfleet.com/en/manufacturers/global/analysis/teslas-dominance-over-carbon-credit-market-explained
- https://electrek.co/2024/03/14/tesla-electric-semi-truck-production-gigafactory-berlin/
- https://www.ccjdigital.com/alternative-power/article/15635242/pepsico-on-tesla-semis-realworld-hauling-performance
- https://banananomics.co/nuclear_fusion_and_the_ai%20_energy_crunch