Tesla Says Free Supercharging Is Back

by Matt Posky

August 5th, 2019 2:23 PM

Tesla has resurrected its plan to provide free, unlimited access to its supercharger stations for the automaker’s customers. While the company frequently rejiggers its product offerings, this one still came out of left field. CEO Elon Musk called the plan unsustainable when the company officially eliminated it in 2018.

However, with the manufacturer seeing increasing sales volume from the Model 3, its premium models are falling by the wayside. Tesla reported 95,200 deliveries in the second quarter, the vast majority being the Model 3. While the company managed to generate $6.3 billion in revenue in the second quarter from those transactions, weaker Q1 volumes took a bite out of its share price and it still lost money through both periods. But it lost a couple hundred million less in Q2 thanks to the uptick in sales.

We imagine some egghead at the Fremont factory noticed a correlation between losing less money and higher sales, had a eureka moment, and ran to tell Musk the good news. And, since it’s the Model S and X that are losing ground, the firm realized it makes good sense to incentivize them.

The company is doing everything in its power to improve the profit margins of its flagship products. In addition to dumping the basement trims, it sought to mitigate manufacturing costs by reducing options and streamlining assembly. But that’s all for naught if it can’t get customers interested in those vehicles.

Which is why unlimited supercharger access is limited to the Model S and X.

Unfortunately, with Tesla making changes to pricing, content, and rewards on a monthly basis, we’re dubious as to how long this deal will last. At present, there is a supercharger referral program that allows for 1,000 miles worth of electricity and a chance to win a new car while older programs are still being phased out. When questioned, Tesla reps said the new arrangement wouldn’t be limited to any specific length of time — which is kind of a nice way of saying “whenever.”

Regardless, we imagine anyone who purchased a Model S or X beforehand are extra salty right now. Numerous comments in the weekend Twitter announcement’s thread used colorful language to help make that point. The rest politely suggested free supercharging be extended to all loyal customers.

BREAKING: All new Model S and Model X orders now come with ⚡ free ⚡ unlimited ⚡ Supercharging ⚡

— Tesla (@Tesla) August 3, 2019

[Image: Tesla Motors]

#Charging #ChargingNetworks #ElectricVehicles #ElonMusk #EVCharging #EVs #Incentives #ModelS #ModelX #Tesla #TeslaMotors

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4 of 21 comments

Cprescott on Aug 05, 2019

Tesla has a real problem - while they try to say their Model 3 is selling well (despite a huge problem with quality forcing upwards of 70% of what is made to go back to a lot to be fixed), there has been a distinct shift in product mix that is starving the company for revenue. Quite simply it is stupid to sell Model 3's at a significantly lower price than the larger sedan or model x - both of which have lost significant sales. The extra $30k in lost cash flow per car is going to kill Tesla - and the Model 3 hatchback (that is no SUV in the Model Why?) will do nothing to reverse this - instead it could steal Model X sales and do further damage to the company.

Like Reply
- SCE to AUX on Aug 06, 2019
  
  From the beginning, the Model 3 was intended to be the volume leader. Tesla does not want to be a luxury car mfr, necessarily. The problem isn't the product mix. The problem is that the Model 3 isn't always profitable.
  
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Art Vandelay on Aug 05, 2019

Is this included if you get a used S through Tesla? Kicking it around for the wife. Not a ton to fear getting one with a few miles on it.

Like Reply
- SCE to AUX on Aug 06, 2019
  
  Many used Teslas have free Supercharging for life. The ad for the particular vehicle usually states this as a benefit.
  
  Like

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