Tesla is rallying after Pepsi places an order for 100 Semis

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Tesla

Tesla shares are trading higher by 2.28% at $336.93 on Tuesday after the company received an order from PepsiCo for 100 of its new Semis.

The order is now the largest known preorder for the new Semi, which is set to start production in 2019. PepsiCo didn’t disclose how much it paid to reserve the Semis, but Tesla is offering reservations for $20,000 a piece on its website, which suggests the reservation is worth about $2 million.

Walmart and Anheuser-Busch are among the other companies that have announced orders for the Semi, and Reuters’ Eric Johnson the current total at 267 total reservations so far.

Even though production won’t begin for over a year, Tesla is likely to fill preorders in the order it received them, meaning the first to request vehicles could gain a leg up on the competition.

The company’s Model 3 was first available for preorders in April, and the waiting list quickly swelled to more than 400,000. Tesla has been plagued by production issues, and only made 260 of the cars in the third quarter, though it looks as if the production bottlenecks are slowly being solved. Ordering a Model 3 now is likely to see a delivery date well into 2018.

Before the Semi’s launch, Morgan Stanley estimated preorder demand would hit 25,000. The trucking industry could benefit from the cost savings from the new truck, which will have autopilot capabilities, according to Tesla.

Tesla shares are up 56.05% this year.

Read more about the company’s Model 3 production troubles here.

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Markets Insider