UPS orders 125 all-electric trucks from Tesla

UPS announced Tuesday it will buy 125 of Tesla's all-electric semi trucks, the largest such order since the vehicle was unveiled in November.

The order by UPS, one of the biggest operators of commercial trucking fleets, comes on the heels of a PepsiCo announcement two weeks ago to buy 100 of the Tesla trucks.

The vehicles are designed to run up to 500 miles on a single charge, helping UPS meet its targets for reducing carbon emissions and gasoline use, the company said.

"These groundbreaking electric tractors are poised to usher in a new era in improved safety, reduced environmental impact, and reduced cost of ownership," said UPS chief information and engineering officer Juan Perez.

The vehicles will cost between $150,000 and $200,000 (127,000 to 170,000 euros) and will be available in 2020. Tesla plans to begin production in 2019.

Led by Elon Musk, Tesla has been at the forefront of the electric car industry. But the company has come under scrutiny of late for pushing back the timeframe for building the Model 3 sedan, its first aimed at the middle market.

Shares of UPS gained 0.4 percent to $119.33 in midday trading, while Tesla Motors fell 1.1 percent to $335.04.

German carmaker Daimler last week delivered its first fully electric trucks to companies in Europe, selling to express delivery service DHL and to German logistics and transport firms DB Schenker, Rhenus and Dachser. UPS has also ordered electric trucks from Daimler.