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Future Teslas Could Come “Energy Included”
Future Teslas could come “energy included”, no matter how much you drive, for the life of the car. Crazy as it sounds, Tesla can actually make money giving Tesla owners free energy at home not just at Superchargers. Key components are already on the road or under development at Tesla. So, how would this work, when will it happen and what does it mean for Tesla owners and Tesla investors?
How it works
Tesla can provide grid regulation and stabilization services worth as much as the energy used for charging, or more, by centrally controlling the time and rate at which Tesla cars are charged. Embedding a modest up-front cost increment into the price of a special Tesla charging connector, pays energy cost in excess of earnings from grid regulation and stabilization as an “annuity”, and can leave a lot of money in Tesla’s pocket, too. This model is similar to Tesla’s Supercharger business – there is a detailed analysis of Tesla’s Supercharger business I did a while back on Seeking Alpha.
Owners will handle charging differently. Instead of setting charging current, normal or range charging, and (optionally) the charging start time, the owner will instead set a time for charging to be completed and whether a normal or range charge is needed by that time. The Tesla charging control center will then match the charging rate of each Tesla car using over-the-air communication links to earn grid regulation fees and capture the best electric rates while making sure each car is recharged when the owner needs to drive off.
Central Control of Charging Rate Provides Grid Stabilization
Your garage charging connector will be fed from a separate meter and the connector will “identify itself” to the car to enable Tesla controlled charging.
Two things make this scheme economically viable. There is flexibility in exactly when your Tesla charges because most days the charging time is much less than the time your car spends plugged in overnight. This flexibility lets charging be “timed” to help regulate the grid. When wind generation surges due to gusts, or when system load suddenly drops, chargers can be switched on to “swallow” the power surge. The grid system operator, working through the Tesla charging control center can rapidly adjust the charging load to help stabilize the grid.
Rapid adjustment of loads on the grid is valuable because it allows the grid to use more wind power with less fossil generation online as “spinning reserve”. When a large number of car chargers quickly switch on to “swallow” a surge in wind generated power, the value of the “regulation down” can actually be greater than that of the energy used by the chargers. At these times, the system operator will actually pay to have cars charge!
When will free home charging happen?
The answer is, we aren’t there yet. Utilities are only beginning to wrestle with what happens when large amounts of battery storage get connected to the grid. This turns out to be quite complicated. This Sierra Club Energy-Storage Cost-Effectiveness paper offers a summary of the results of several grid storage studies done for the California Independent System Operator (CAISO). At this point we can’t do a specific financial model because technologies, rate structures and even how grid regulation will work with attached storage have not been set.
There are also, at this point, too few Tesla cars on the road to make their charging a significant source of grid regulation. And so far, there is no central control system in place to coordinate the charging of Tesla cars. But times are changing.
CAISO now operates a unified energy imbalance market (EIM) across all or parts of seven states (CA, ID, NV, OR, UT, WA, WY). Within a few years one can imagine upwards of half a million Teslas registered in these states. When these cars are (mostly) plugged in for charging at night, they together represent several giga-watts of load that can be switched on or off in seconds, using the central charging control scheme. That’s a lot of wind regulation capability that requires almost no additional capital investment. It just might get us “free” energy to charge Tesla cars in their owner’s garages.
Status: Where are we on the path to free energy?
Tesla is doing a lot more with grid connected storage and grid regulation than many Tesla owners, and even many Tesla investors realize. In May of this year, J.B. Straubel, Tesla’s Chief Technology Officer made the keynote presentation at Silicon Valley/ SEEDZ Energy Storage Symposium. He discussed a surprising array of Tesla storage products already being made and installed in grid applications, from small residential storage systems being rolled out by SolarCity to large industrial units delivering hundreds of kilowatts. Video of JB’s presentation is available on YouTube here.
A lot of the hardware needed for central charging control of Tesla cars is already part of every Tesla. Every Model S already has a big battery, of course. And high power 10kW or 20kW chargers that are controlled through the touchscreen and the car’s computer. Every Tesla car has a broadband communication link to Tesla company computers that is used to download software updates. These links are available to control charging on a car-by-car basis. Tesla already makes a high power wall connector (HPWC) that can be installed with connection through a standard utility meter. Buying and installing one of these will probably be a requirement to get “free” charging at home.
The only part of the remote charging scheme that isn’t online today is the central control system for “aggregating” car charging so it can be controlled by the grid system operator. Everything else needed to implement aggregated charge control for Tesla cars is either already in production at Tesla or available off the shelf as commercial products or communication services.
In his talk, JB describes aggregation of many residential storage systems to allow the grid operator to use that distributed resource in much the same way aggregated car charging control might be used to stabilize and regulate the grid. At the end of his talk, there is a Q and A session. Someone asks what Tesla’s plans are for eventually implementing the aggregated control center JB described. His answer, “We are building it now.”
Should Tesla owners / investors care about this?
Probably, but some caution is warranted. Tesla owners already talk to their ICE driving friends about how much less electricity costs compared to gasoline or diesel fuel. If in the future all Tesla charging is free, both at home and from Superchargers when traveling long distances, Tesla owners will be left with literally “nothing” to talk about – something their fossil fueled friends may (or may not) appreciate.
For Tesla investors, the prospect of making all the energy for Tesla cars free has some big implications. If the economics parallel those of the Supercharger business, Tesla could see very large additional profit (billions of dollars at least) for something that would require negligible new capital investment by Tesla.
There will be indirect benefits for Tesla, too. Already Tesla cars offer the advantage of much lower energy cost compared to ICE cars, and even hybrids. Free charging at home and at Superchargers would make Tesla cars energy cost even lower than other electric cars which get charged on the owner’s electric meter. While the absolute economic advantage of free charging, compared to other electric cars, will be modest, the emotional value of getting energy for free should never be underestimated as a competitive edge in the market place.
And of course there is the plain, simple novelty of offering a car that costs nothing to run. This is a feature no other car is likely to have, and which no other car (with the exception of soap box derby and solar-car competition cars) has had before. It is newsworthy, people will talk and write about it and it will produce a lot of buzz and free advertising for Tesla. Tesla investors need to be careful not to be overcome with hysteria as the shares go up, yet again.
Disclosure: Author is long Tesla.
News
Tesla begins ‘honorable discharge’ of Model S, X with massive move
In a significant development that marks the beginning of the end for two of its longest-running models, Tesla has removed the custom order configurator for the Model S sedan and Model X SUV from its website.
Tesla has officially started the “honorable discharge” of the Model S and Model X with a massive move, removing the two vehicles from Custom Orders and only offering inventory options.
It is the latest move Tesla has made to pull the Model S and Model X from its lineup, a decision CEO Elon Musk announced during its last quarterly earnings call.
Tesla brings closure to flagship ‘sentimental’ models, Musk confirms
In a significant development that marks the beginning of the end for two of its longest-running models, Tesla has removed the custom order configurator for the Model S sedan and Model X SUV from its website.
As of April 1, visitors to tesla.com/model-s and tesla.com/modelx are now redirected exclusively to limited inventory listings rather than a design studio, allowing buyers to select paint, wheels, interior options, or performance upgrades. Only pre-built vehicles currently in stock are available for purchase or lease.
Tesla CEO Elon Musk confirmed the change directly on X, posting: “Custom orders of the Tesla Model S & X have come to an end. All that’s left are some in inventory.”
Custom orders of the Tesla Model S & X have come to an end. All that’s left are some in inventory.
We will have an official ceremony to mark the ending of an era. I love those cars.
This was me at production launch 14 years ago: pic.twitter.com/6kvCf9HTHc
— Elon Musk (@elonmusk) April 1, 2026
We will have an official ceremony to mark the end of an era.” Accompanying the statement was a throwback photo from the Model S production launch in 2012, underscoring the emotional weight of the decision.
Musk had first signaled the phase-out during the company’s Q4 2025 earnings call in January, describing it as time for an “honorable discharge” of the programs to free up resources at the Fremont factory for Optimus humanoid robot production and autonomous vehicle initiatives.
The Model S, introduced in 2012, and the Model X, which followed in 2015, were instrumental in establishing Tesla as a premium electric vehicle leader.
The sedan offered class-leading range and acceleration, while the SUV’s signature falcon-wing doors became an iconic feature. Together, they proved EVs could compete in the luxury segment. Yet sales volumes have dwindled in recent years as Tesla prioritized higher-volume Model 3 and Model Y vehicles.
The flagships now represent a tiny fraction of overall deliveries, making continued custom production inefficient as the company accelerates toward robotaxis and next-generation platforms.
Prospective buyers are urged to act quickly. Remaining U.S. inventory vehicles—some nearly new—may include incentives such as lifetime free Supercharging, Full Self-Driving (Supervised) capability, and premium connectivity, depending on configuration.
Leasing options start around $1,699 per month for select Model X units, though exact pricing and availability fluctuate. International markets, including Europe and China, have already seen similar restrictions in recent months.
The move aligns with Tesla’s broader strategy to streamline its lineup and redirect manufacturing capacity toward autonomy and AI-driven products. While some enthusiasts lament the loss of personalization, the company views the transition as necessary progress.
Tesla has indicated that once the current inventory sells out, new Model S and Model X vehicles will no longer be offered.
For loyal owners and fans, the promised “official ceremony” may provide a fitting send-off. In the meantime, the website change serves as a clear signal: the era of bespoke flagship Teslas has quietly concluded, and the focus has fully shifted to the future.
Elon Musk
SpaceX files confidentially for IPO that will rewrite the record books
SpaceX files confidentially for a record-breaking IPO targeting a $1.75T valuation and $80B raise, driven by Starlink growth and its xAI merger.
Elon Musk’s rocket and satellite company submitted its draft registration to the U.S. Securities and Exchange Commission today for an initial public offering, targeting June at a $1.75 trillion valuation. This would be the largest in history.
SpaceX has filed confidentially with the SEC, first reported by Bloomberg. SpaceX would be valued above every S&P 500 company except Nvidia, Apple, Alphabet, Microsoft, and Amazon.
The filing uses a confidential process that allows companies to work through SEC disclosures privately before initiating a public roadshow. With a June target, official details through a formal prospectus is expected to go public in April or early May, after which SpaceX must wait at least 15 days before beginning investor marketing.
While SpaceX is best known for its Falcon 9 and Starship rockets, the $1.75 trillion valuation is anchored by Starlink, its satellite internet service. Starlink ended 2025 with 9.2 million subscribers and over $10 billion in revenue, which is a figure analysts project could reach a staggering $24 billion by the end of 2026. A February all-stock merger with xAI, Musk’s artificial intelligence venture, further boosted the valuation.
SpaceX officially acquires xAI, merging rockets with AI expertise
Bank of America, Goldman Sachs, JPMorgan Chase, and Morgan Stanley are lined up as senior underwriters. SpaceX is also considering a dual-class share structure to preserve insider voting control, and plans to allocate up to 30% of shares to retail investors, which is roughly three times the typical norm.
Elon Musk
Elon Musk hints at “official ceremony” with throwback photo to close Tesla Model S, Model X chapter
Elon Musk promises an official ceremony to mark the end of Tesla Model S and Model X production.
Tesla has officially begun winding down production of the Model S and Model X, sending farewell emails to U.S. customers on March 27 and updating the website to reflect the end of the line. Shoppers visiting Tesla.com now find only a limited set of Model S and Model X inventory units available for purchase, with no option to configure a new factory build. The move formalizes what CEO Elon Musk announced on the company’s Q4 2025 earnings call in January, when he said it was “time to basically bring the Model S and X programs to an end with an honorable discharge.”
Musk posted on X a throwback photo of himself speaking at the Model S production launch in 2012, and noting “We will have an official ceremony to mark the ending of an era. I love those cars.”
The mention of an official ceremony is notable. Tesla has not held a formal farewell event for a vehicle before, and Musk’s wording suggests this will be something deliberate rather than a quiet line shutdown. Given that Musk’s X post shows a photo of him on stage with a microphone in front of an audience at the Fremont factory, it wouldn’t be too far-fetched to expect a closing ceremony to take place at the same location. Perhaps? Whether it becomes a public event, a private gathering for employees, or a livestreamed moment on X remains to be seen.
Custom orders of the Tesla Model S & X have come to an end. All that’s left are some in inventory.
We will have an official ceremony to mark the ending of an era. I love those cars.
This was me at production launch 14 years ago: pic.twitter.com/6kvCf9HTHc
— Elon Musk (@elonmusk) April 1, 2026
The Model S first went on sale nearly fifteen years ago and was Tesla’s first fully in-house designed vehicle, proving that an electric car could be fast, desirable, and capable of long distance on a single charge. The Model X followed in 2015, turning heads with its unmistakable and distinctive falcon-wing doors, while becoming one of the first all-electric SUVs on the market. Tesla’s two flagship vehicles would ultimately push legacy automakers to take all-electric transportation seriously and help fund development of the more affordable Model 3 and Model Y.
By 2025, however, both models had been reduced to a rounding error in Tesla’s sales figures. Musk was direct about what comes next, stating “We are going to convert that production space to an Optimus factory. It’s part of our overall shift to an autonomous future.”
Elon Musk’s $10 Trillion robot: Inside Tesla’s push to mass produce Optimus
That shift is already underway. Tesla officially started Optimus Gen 3 production at its Fremont factory in January 2026, with the line targeting a run rate of one million units per year. The Gen 3 robot features 22 degrees of freedom per hand, runs on Tesla’s AI5 chip, and shares the same neural network architecture as Full Self-Driving. A dedicated Optimus factory at Gigafactory Texas is also under construction, with a planned annual capacity of 10 million units. The production lines that once built the Model S and Model X are being converted to support that ramp.
Tesla confirmed it will continue to support existing owners with service, software updates, and parts for as long as people own the vehicles. For buyers still interested in a new example, remaining U.S. inventory is discounted and the window is closing fast.
Tesla begins ‘honorable discharge’ of Model S, X with massive move
SpaceX files confidentially for IPO that will rewrite the record books
Elon Musk hints at “official ceremony” with throwback photo to close Tesla Model S, Model X chapter
Elon Musk says Tesla is developing a new vehicle: ‘Way cooler than a minivan’
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
