There was more bad news for Tesla Inc. (NASDAQ:TSLA) after one of its major competitors, Nikola Motor Co, secured a major order for its hydrogen-powered semi trucks.
Budweiser maker Anheuser-Busch InBev (NYSE:BUD), which ordered 40 electric trucks from Tesla last year, is to buy as many as 800 semi trucks from Phoenix-based Nikola.
Whereas Tesla uses batteries in its powertrain technology, Nikola uses hydrogen fuel cells; neither of which generate any tailpipe pollutants.
Nikola claims its trucks are better because their system is lighter which allows the vehicles to go for up to 1,200 miles on a full charge, compared to just the 500 miles which Tesla trucks will top out at.
Because they run on gas, the trucks can be refueled in 20 minutes – not too dissimilar to conventional diesel trucks – although it isn’t always easy to find somewhere to refuel them.
To combat that Nikola is planning on building 700 refueling stations over the next seven years.
Anheuser-Busch is investing in eco-friendly trucks as it targets a 25% reduction in its overall carbon emissions by 2025.
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The beermaker hopes to have all 800 Nikola trucks in its fleet by 2020 and will begin testing the first pre-production semis later this year.
Tesla shares, already hampered by yesterday’s earnings report which failed to clear up some lingering worries, were down 5.9% to US$283.38 come Thursday afternoon. Anheuser’s stock was up 2.2% to US$96.70.