Karat Packaging Inc., a California-based distributor and manufacturer of disposable, environmentally friendly foodservice products, announced on Tuesday it has ordered 10 Tesla Semis to power an expansion of its logistics business.
Karat Packaging’s fleet currently consists of 86 trucks and trailers and provides third-party logistic (3PL) services to around 100 customers in California. The company is looking to expand its logistics business, both in California and in other regions from its existing distribution centers in New Jersey, South Carolina, and Texas.
“We are excited to incorporate alternative-fuel trucks into our fleet. This purchase represents our commitment to continue investing in environmentally friendly solutions,” said Alan Yu, Chairman and Chief Executive Officer at Karat Packaging.
“Adding to Karat Packaging’s competitive advantage and the Company’s distinguishing characteristics, we are pleased to offer additional 3PL services to new and existing customers, particularly during the current supply chain environment.”
The Tesla Semi is an all-electric Class 8 semi-truck announced by the electric vehicle (EV) pioneer in late 2017.
The battery-electric truck is expected to have a range of up to 500 miles (804 km) on a single charge, and will not only give a company that already specializes in environmentally friendly products a competitive edge but will also help Karat Packaging drive down the cost of cargo transport.
Tesla reportedly started limited production of the Semi at its Nevada Gigafactory earlier this month, with first deliveries expected to go out to cola giant PepsiCo by year’s end.
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