EV big rigs already make sense for half of the $4 trillion freight truck market, says Einride CEO
The diesel-powered trucking industry moves a majority of freight, up to 70% in the U.S. alone. In California, trucks are the largest single source of vehicle-produced air pollution that “spew 70% of the state’s smog-forming gases and 80% of carcinogenic diesel pollutants,” according to the California Air Resources Board, making the trucking sector a key part of the emissions reduction challenge.
Swedish EV trucking startup Einride has been able to so far go toe-to-toe with Tesla and its Semi in attracting top corporate clients. Both have deals with PepsiCo — Einride in the U.K. and Tesla in California.
Einride also has global shipping giant Maersk, GE Appliances, AB InBev, Bridgestone, and Beyond Meat as customers.
While many of these deals are narrow to start with, Einride founder and CEO Robert Falck says the business case already exists today for many more freight players to make the transition from diesel to electric, up to half of the industry, according to Falck.
“In the $4 trillion freight mobility space, between 40%-50% should be electric driven by the business case today,” Falck said on CNBC’s “Worldwide Exchange” in an interview on Thursday after his company ranked No. 13 on the 2023 CNBC Disruptor 50 list. “That means a $2 trillion opportunity already today,” he added.
Einride is one of three companies focused on trucking to make the 2023 Disruptor 50 list — Convoy, founded by former Amazon executives, came in at No. 47, and Flock Freight, the only certified B Corp in the freight sector, came in at No. 20. Additional logistics companies to make the list focused on technology-based solutions in transportation and climate include Flexport and Lineage Logistics.
The numbers on the EV cost equation, though, remain less than an exact science. A month ago, when appearing on CNBC to discuss the new deal with PepsiCo, Falk estimated that 30%-40% of the market could make the EV transition based on cost today. Not much has changed for the better in the math in just a month. In fact, diesel prices continue to trend lower, and haven’t been this low since before Russia invaded Ukraine, taking away a short-term advantage for the EV argument.
Diesel prices hit an all-time high last year in June of last year, and have fallen by 25% or more since then.
“In the near-term, of course, the business case for diesel becomes slightly better,” Falck said in the April interview.
But he stressed that the big brand examples of companies already signing on as clients prove the case. “They want to get the benefits of going sustainable but would not be willing to do it without a cost-competitive way,” he said on Thursday.
Diesel vs. EV economics
In many markets, independent of short-term movements in diesel prices, EV is cheaper for trucking, according to Falck, though it does depend on the cost of electricity. And as trucking hardware becomes cheaper and more widely available, the case for the EV transition will increase.
Part of the challenge is in the recharging, In September, the Department of Transportation approved EV-charging station plans for all 50 states, Washington, D.C., and Puerto Rico, covering about 75,000 miles of highways. States also have access to more than $1.5 billion in funds to help construct the chargers.
Einride’s business model, Falck stressed, and the business case for its customers, is not just about the truck manufacturing — it does not manufacture the trucks itself — but the turnkey solution that extends from the vehicle to the trailer design to the infrastructure (e.g. charging) to operations across the transportation system and its digital freight network solution.
In freight, unlike the consumer market, “it’s not about range, it’s about how to secure the business case,” he said.
Its trucks in the Class 8 tractor-trailer niche have a range of 400 miles.
Swedish electric vehicle maker Einride will supply two of its heavy-duty trucks to PepsiCo as part of an expansion into the U.K.
Einride
Independent research does support the idea of more freight going EV. Nonprofit newsgroup Cal Matters found that the total cost of buying and operating an electric semi-truck could be anywhere from $765,000 to $1.1 million, while a gas or diesel truck ranges from $919,000 to $1.2 million.
Interest in the state of California is high because the California Air Resources Board is requiring truck manufacturers to begin phasing in available heavy-duty EV technology by 2024. But in the state, which is a leader in climate technology and climate regulation — and one of the world’s largest economies — for now at least, the larger focus is on short-haul trucking.
California has set the goal of all zero-emission short-haul drayage fleets — for operations in and nearby ports — by 2035. Schneider, a truckload, intermodal and logistics service, announced its battery-electric truck (BEV) fleet back in 2021, and the first BEV arrived at a Southern California port this year.
″We’re going to be operating those in and out of railheads for intermodal customers, and so we’ll start with five taking this month and will be up to about that hundred number by the time we get through the calendar year,” Schneider CEO Mark Rourke said on CNBC’s “Squawk on the Street” in February.
Autonomous big rigs
But bigger trucks are critical for climate goals. Medium and heavy trucks make up only about 4% of vehicles in the U.S., but because of their larger size and greater travel distances, the vehicles consume more than 25% of total highway fuel and represent nearly 30% of highway carbon emissions, according to the Department of Energy.
While Einride is making bold calls about the EV transition today, Falck is cautious on one aspect of the technology that gets a lot of attention: autonomous trucking. He said Einride does see the short-haul market being a better fit today for the autonomous transition, and described the process of moving to autonomous trucks as “gradual.”
For most goods being moved by autonomous electric vehicles today, it is inside warehouses and logistics centers. “We’ve taken the same approach,” he said. “We start with manual electric and gradually introduce more and more autonomy. We’re already doing autonomous for clients, but not everywhere. We start with the simple applications, fenced-off areas … low speeds.”
“We gradually grow into this,” Falck said. “This is not just about making a truck autonomous, it’s changing the entire transport system.”
That will be measured in decades, in his option. “In 25 years, we will predominantly be electric and autonomous,” Falck said.
—CNBC’s Kaitlin Balasaygun contributed reporting.
Climate XChange’s Annual EV Raffle is back for the 10th year running – and for the first time ever, Climate XChange has two raffle options on the table! The nonprofit has helped lucky winners custom-order their ideal EVs for the past decade. Now you have the chance to kick off your holiday season with a brand new EV for as little as $100.
About half of the raffle tickets have been sold so far for each of the raffles – you can see the live ticket count on Climate XChange’s homepage – so your odds of winning are better than ever.
But don’t wait – raffle ticket sales end on December 8!
Climate XChange is working hard to help states transition to a zero-emissions economy. Every ticket you buy supports this mission while giving you a chance to drive home your dream EV.
Here’s how Climate XChange’s 10th Annual Raffle works:
The Luxury Raffle
- Grand Prize: The winner can choose any EV on the market, fully customized up to $120,000. This year, you can split the prize between two EVs if the total is $120,000 or less.
- Taxes covered: This raffle comes with no strings – Climate XChange also pays all of the taxes.
- Runner-up prizes: Even if you don’t win the Grand Prize, you still have a chance at the 2nd prize of $12,500 and the 3rd prize of $7,500.
- Ticket price: $250.
- Grand Prize Drawing: December 12, 2025.
- Only 5,000 tickets will be sold for the Luxury Raffle.
The Mini Raffle (New for 2025)
- Grand Prize: Choose any EV on the market, fully customized, up to $45,000. This is the perfect raffle if you’re ready to make the switch to an EV but aren’t in the market for a luxury model.
- Taxes covered: Climate XChange pays all the taxes on the Mini Raffle, too.
- Ticket price: $100.
- Only 3,500 tickets will be sold for the Mini Raffle.
Why it’s worth entering
For a decade, Climate XChange has run a raffle that’s fair, transparent, and exciting. Every ticket stub is printed, and the entire drawing is live-streamed, including the loading of the raffle drum. Independent auditors also oversee the process.
Plus, your odds on the Luxury and Mini Raffles are far better than most car raffles, and they’re even better if you enter both.
Remember that only 5,000 tickets will be sold for the Luxury Raffle and only 3,500 for the Mini Raffle, and around half of the available tickets have been sold so far, so don’t miss your shot at your dream EV!
Climate XChange personally works with the winners to help them build and order their dream EVs. The winner of the Ninth Annual EV Raffle built a gorgeous storm blue Rivian R1T.
How to enter
Go to CarbonRaffle.org/Electrek before December 8 to buy your ticket. Start dreaming up your perfect EV – and know that no matter what, you’re helping accelerate the shift to clean energy.
Who is Climate XChange?
Climate XChange (CXC) is a nonpartisan nonprofit working to help states pass effective, equitable climate policies because they’re critical in accelerating the transition to a zero-emissions economy. CXC advances state climate policy through its State Climate Policy Network (SCPN) – a community of more than 15,000 advocates and policymakers – and its State Climate Policy Dashboard, a leading data platform for tracking climate action across the US.
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The CSC Monterey – one of the most charming little electric scooters on the US market – has dropped to a shockingly low $1,699, down from its original $2,899 MSRP. That’s nearly half off for a full-size, street-legal electric scooter that channels major Honda Super Cub energy, but without the gas, noise, or maintenance of the original.
CSC Motorcycles, based in Azusa, California, has a long history of importing and supporting small-format electric and gas bikes, but the Monterey has always stood out as the brand’s “fun vibes first” model. With its step-through frame, big retro headlight, slim bodywork, and upright seating position, it looks like something from a 1960s postcard – just brought into the modern era with lithium batteries and a brushless hub motor.
I had my first experience on one of these scooters back in 2021, when I reviewed the then-new model here on Electrek. I instantly fell in love with it and even got one for my dad. It now lives at his place and I think he gets just as much joy from looking at it in his garage as riding it.
You can see my review video below.
The performance is solidly moped-class, which is exactly what it’s designed for. A 2,400W rear hub motor pushes the Monterey up to a claimed 30 mph or 48 km/h (I found it really topped out at closer to 32 mph or 51 km/h), making it perfect for city streets, beach towns, and lower-speed suburban routes.
A 60V, roughly 1.6 kWh removable battery offers around 30–40 miles (48-64 km) of real-world range, depending on how aggressively you twist the throttle. It’s commuter-ready, grocery-run-ready, and campus-ready right out of the crate.
It’s also remarkably approachable. At around 181 pounds (82 kg), the Monterey is light for a sit-down scooter, making it easy to maneuver and park. There’s a small storage cubby, LED lighting, and the usual simple twist-and-go operation. And it comes with full support from CSC, a company that keeps a massive warehouse stocked with components and spare parts.
My sister has a CSC SG250 (I’m still trying to convert her to electric) and has gotten great support from them in the past, including from their mechanics walking her through carburetor questions over the phone. So I know from personal experience that CSC is a great company that stands behind its bikes.
But the real story here is the price. Scooters in this class typically hover between $2,500 and $4,500, and electric retro-style models often jump well above that.
At $1,699, the Monterey is one of the least expensive street-legal electric scooters available from a reputable US distributor, especially one that actually stocks parts and provides phone support.
If you’ve been curious about swapping a few car errands for something electric – or you just want a fun, vintage-styled runabout for getting around town – this is one of the best deals of the year.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss a big Tesla Robotaxi setback, the new Mercedes-Benz CLA EV, Bollinger is over, and more.
Today’s episode is brought to you by Climate XChange, a nonpartisan nonprofit working to help states pass effective, equitable climate policies. Sales end on Dec. 8th for its 10th annual EV raffle, where participants have multiple opportunities to win their dream model. Visit CarbonRaffle.org/Electrek to learn more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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