Tesla, the electric vehicle (EV) giant, has reduced the price for charging at its supercharger network in a bid to accelerate electric vehicle adoption. According to Max de Zegher, Director of Charging, the goal behind the move is to price it lower to accelerate EV adoption and be financially sustainable to invest in expanding the network.
What’s Happening?
The reduction in charging costs is a potential strategy for wooing potential customers to buy Teslas over gas vehicles amid slowing EV demand. For the full year 2023, Tesla delivered 1,808,581 vehicles around the globe. To mark a growth over last year, the company needs to deliver at least 514,926 vehicles in the three months through the end of December.
Why It Matters
At the end of the third quarter, Tesla had 6,706 supercharger stations around the globe and 62,421 connectors. During Tesla’s annual shareholder meeting in June, CEO Elon Musk slammed rumors of the death of its supercharger network following a major layoff in April as “greatly exaggerated.” Musk then said that Tesla would invest $500 million in expanding the network this year.
Twitter Update from Max de Zegher
“Some Supercharger price reductions overall. Goal is to:
(1) price low to accelerate EV adoption, we pass on cost efficiencies
(2) be financially sustainable to invest in the network, growing dependable freedom to travel”
Industry Impact
Tesla’s company-wide layoffs in April impacted 500 members of the supercharging team and Rebecca Tinucci, Tesla’s then Senior Director of Charging Infrastructure, left the company. The reduction in charging costs is a strategic move to boost EV sales and expand the supercharger network.