The Changing Landscape of Class 8 EV Trucks

The push for Class 8 electric vehicles (EVs) within the heavy-duty trucking industry has undergone significant shifts over the past decade. Government policies at the federal and state level along with technological advancements and corporate sustainability initiatives have shaped—and reshaped—the trajectory of EV adoption in this space. The most dramatic changes have occurred under the contrasting approaches of the Biden and Trump administrations, setting the stage for what’s to come in the next two years.

Barriers to Class 8 EV Truck Adoption

Despite advances in technology and increased production capacity, several barriers to entry remain for Class 8 EV adoption. Some of these have improved, however, due to technological advancements and production efficiencies.

High Upfront Costs: A report by the American Transportation Research Institute (ATRI) notes that new Class 8 battery electric trucks can cost over $400,000, while diesel counterparts are around $180,000. However, advancements in battery manufacturing, economies of scale, and increased production volumes have begun driving costs down, with some projections expecting further reductions as more manufacturers enter the market.

Charging Infrastructure Limitations: Infrastructure development is expensive and can be slow. The U.S. Department of Energy's Alternative Fuels Data Center reports that installation costs for DC fast charging stations (which can include megawatt-level chargers) vary widely based on charger power and the number of chargers installed per site. Specifically, installation costs can range from $20,000 to $60,000 per connector, with higher costs associated with higher power outputs and more complex installations.

Investment from private companies like CBRE in partnership with Forum Mobility and increased funding from utility programs have started expanding charging accessibility, particularly near ports and distribution hubs.

Battery Range and Weight Concerns: While battery ranges have improved, most Class 8 EVs currently offer between 200–300 miles per charge, compared to diesel trucks that can travel 1,200–1,500 miles on a single tank.

The introduction of more energy-dense battery chemistries and rapid advancements in charging speed have helped mitigate these concerns, with new fast-charging technology allowing for partial recharges in under an hour. Additionally, lighter battery materials are in development, which could improve payload capacity.

Supply Chain Constraints: Despite increased production, supply chain issues such as lithium-ion battery material shortages and semiconductor delays continue to impact availability, often leading to long wait times for new orders.

However, domestic battery production in the U.S. has been increasing, reducing reliance on foreign suppliers and shortening lead times for some manufacturers.

Incentives Before and During the Biden Era

Pre-Biden Incentives (Before 2021)

Before Biden took office, public and private incentive programs specific to Class 8 EV trucks existed but were limited. There were no federal incentives specifically targeted at heavy-duty electric trucks, leaving state programs to drive adoption.

• State-Level Grants (HVIP): California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) provided up to $120,000 per Class 8 truck for eligible fleets.
• Carl Moyer Memorial Air Quality Standards Attainment Program: This program provided grants for replacing older diesel trucks with cleaner alternatives, including Class 8 EVs. Funding amounts varied by region and project type, typically covering 50% to 85% of the incremental cost of a new zero-emission truck.
• Volkswagen Environmental Mitigation Trust (VW Settlement Funds): This trust allocated $423 million to California, with up to $150,000 per truck available to replace older diesel models with zero-emission Class 8 trucks.
• Private Fleet Initiatives: Some companies, such as Amazon and PepsiCo, invested in Class 8 EVs through manufacturer partnerships, but widespread adoption remained slow due to high costs.

Limited Federal Support –Biden Era Incentives (2021–Present)

Under the Biden administration, Class 8 EV-specific incentives expanded significantly.

• HVIP Expansion: California increased voucher amounts, offering up to $240,000 per Class 8 truck for eligible fleets. Smaller fleets and drayage operators qualify for priority funding.
• EPA Clean Heavy-Duty Vehicle Program: The EPA provided grants and rebates to replace diesel Class 8 trucks with zero-emission models. Funding can cover up to 45% of the cost of a new EV truck.
• Bipartisan Infrastructure Law: This law allocated $7.5 billion to build a national EV charging network, including infrastructure for heavy-duty trucks.
• Federal Tax Incentives: The Inflation Reduction Act introduced a $40,000 tax credit per Class 8 electric truck, directly reducing acquisition costs for fleets.
• Local Air Quality District Programs: Various California air districts, such as the South Coast Air Quality Management District (SCAQMD) and the Bay Area Air Quality Management District (BAAQMD), have offered additional funding for zero-emission truck purchases, often stacking with state-level grants.
• Utility Company Rebates: Some California utility companies, including Southern California Edison and Pacific Gas & Electric, have provided rebates for purchasing and installing charging stations, covering up to 50% of infrastructure costs.
• Forum Mobility and CBRE Investment Management Joint Venture: A $400 million partnership was created to focus on electrifying heavy-duty port transit, including Class 8 truck infrastructure. Additionally, a $15 million Series A investment supports the expansion of zero-emission drayage trucking solutions, particularly in California ports.

The Next 24 Months: A New Reality for Class 8 EV Trucks

The landscape for Class 8 EV trucks has changed significantly, and the outlook for widespread adoption has shifted. With the rollback of federal mandates and significant changes to California's regulatory landscape, the urgency for widespread investment in EV truck adoption has dramatically decreased.

The Current State of EV Truck Adoption

For all practical purposes, there is no longer a pressing requirement for logistics providers to transition to Class 8 EV trucks in order to remain compliant or competitive. The Trump administration's rollback of key EV regulations has effectively halted aggressive federal mandates, and California's Advanced Clean Fleets (ACF) Rule—once a major driver of EV adoption—has been scaled back dramatically. As a result, EV adoption in the trucking industry will likely remain concentrated in select regional markets or within companies pursuing aggressive sustainability initiatives.

What This Means for Logistics Providers

• No Urgent Compliance Pressure: There is no imminent federal or California-wide mandate requiring fleets to adopt EV trucks to stay compliant. For most logisticians, there is no regulatory need to shift their investment strategies toward electric vehicles.
• Localized Pockets of EV Use: While EV trucks will continue to be produced, adoption will likely remain limited to specific industries or regions with strong sustainability priorities, such as California’s ports.
• Sustainability-Driven Investment: Companies with aggressive ESG (Environmental, Social, and Governance) targets may still see value in investing in EV fleets. However, for most traditional shippers, this is no longer a major consideration.
• Stable Diesel and Alternative Fuel Options: For most shippers, working with a well-established, compliant carrier utilizing efficient diesel or alternative fuel fleets will remain the most effective strategy for the foreseeable future.

Partnering with a Reliable Carrier: The Best Path Forward

For shippers seeking stability and compliance in this evolving landscape, partnering with an efficient, regulation-savvy transportation provider is the most prudent strategy. Rather than investing heavily in EV infrastructure, businesses can achieve better ROI by aligning with carriers that prioritize cost-effective, compliant, and environmentally responsible practices.

Weber Logistics is a West Coast 3PL that has built a strong reputation for operational efficiency, regulatory compliance, and environmental responsibility. From CARB-compliant drayage services to a fleet that meets the highest EPA standards, Weber ensures its partners remain competitive without costly EV investments.

Contact Weber Logistics today to learn more about our integrated logistics solutions and how we can help your business thrive in today’s rapidly changing logistics environment.