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Mayor tied to Tesla Supercharger site questioned over ‘conflict of interest’

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Tesla Supercharger station in Aberdeen, Washington [Credit: Trebor Thickweb via app check-in]

He was young. Ambitious. Gifted. One of the greatest players to ever set foot on a professional baseball diamond, “Shoeless” Joe Jackson’s career ended in tatters for his alleged role in the infamous Chicago “Black Sox scandal” of 1919.

Call it a “conflict of interest.” It involved money. Lots of it.

Something else that involves money – lots of it – is afoot in Aberdeen, Washington: A Tesla Supercharger station and a “Gateway Center.” Aberdeen Mayor Erik Larson is a staunch proponent of both.

Updated: Mayor Larson fines himself $500 for violating the state’s conflict of interest ethics code

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Mayor Larson is making the rounds looking for funding to help cover the costs of Gateway Center construction which is expected to cost upwards of $8M to complete, and incorporate Tesla’s Supercharger station into the design.

Questions within the community are swirling around what appears to be a conflict of interest regarding the mayor’s involvement in the Tesla deal. Documents have surfaced showing that the mayor has, or had, a financial interest in the electric car company that’s building the Supercharger station, apparently while he was negotiating with the company to bring the project to a city-owned lot. Why the station is being built on publicly owned land rather than on a private site is also in question.

Background

Mayor Larson negotiated the original agreement with Tesla for the charging station, which could have cost the city up to $2,000 a month in utility bills. The lease agreement came before the Aberdeen City Council for approval last summer. Originally, the City of Aberdeen was on the hook for paying  electricity costs.

Tesla Supercharger station in Aberdeen, Washington during construction [Credit: Trebor Thickweb via app check-in]

As noted in the Aberdeen City Council meeting agenda dated July 13, 2016, the lease language at that time included (see page three):

“The Mayor has negotiated with Tesla Motors, Inc. for the construction of a Tesla supercharger station in Aberdeen on the city of the former Chevron station. The supercharger will be incorporated into the design of the Gateway Center. …  the city will also be responsible for… paying the utility bills for Tesla vehicles that use the charging station, up to monthly cap of $2,000 per month.” (Emphasis added.)

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Reading further, Item 8 of that actual lease agreement specifies that:

“Tesla agrees to arrange for all Tesla-related utility services provided or used in or at the Premises… Tesla shall pay directly to the utility company the cost of installation of any all such Tesla-related utility services and shall arrange to have the utility service separately metered. (Counterparty) shall be responsible for paying all utility bills related to such meter after installation, including payment for electricity consumed at the Premises during the Term, up to two thousand dollars ($2,000) per month.” (Emphasis added.)

Other Cities, Other Charging Stations

Tesla lease agreements with city governments aren’t new. Similar charging stations exist in five other Washington cities: Centralia, Burlington, Ellensburg, Kennewick, and Ritzville. There are eleven Supercharger stations in Oregon. All are located on either hotel/resort type private property or some other type of retail/outlet center. But the Aberdeen location is on a city-owned lot.

In California, two Supercharging stations on publicly owned property exist in Ukiah and Crescent City. But the terms negotiated by those cities for the stations are jarringly different from those negotiated for the Aberdeen site:

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In Ukiah:

– “Tesla pays for the entire project, including staff time and utility costs.” (Ukiah Daily Journal, August 8, 2015.)

In Crescent City:

  • The city is being paid by the tenant for use of its property. A proposal by Recargo, Inc. to build and operate a universal electric vehicle charging station in Crescent City included a $4,800 annual payment from Recargo to the district for use of the property. (Del Norte Triplicate, October 11, 2016.)
  • “Essential components” of the city’s lease agreement with Tesla includes: “(1) the term, which is five years with two five-year options to renew, (2) Tesla will build and maintain the facility, and (3) the lease amount is one dollar per month.” (City of Crescent City Council Agenda Report, April 6, 2015.)
  • Tenant “agrees to arrange for and pay for all Tenant-related utility services provided or used in or at the Premises during the term of the Lease.” (#10 – Utilities – City of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)
  • “Tenant shall pay directly to the utility company the cost of installation of any and all such Tenant-related utility services and shall arrange to have the utility service separately metered.” (#10, UtilitiesCity of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)

In Aberdeen:

  • The city (re: taxpayers) could get stuck with “up to 30,000 for the costs of installing the new infrastructure for the city” per the re-negotiated August agreement.

[Credit: Conservelocity]

Key items in the re-negotiated agreement between the city and Tesla include (Aberdeen City Council Meeting Agenda, August 24, 2016. See page 3):
  • The provision requiring the city to pay for electricity used by Tesla vehicles was removed.
  • The proposed new lease requires Tesla to pay for all costs of charging Tesla vehicles.
  • The lease also requires Tesla to install infrastructure “that would allow the city to add charging stations for other electric vehicles at some point in the future.”
  • The city “will reimburse Tesla up to $30,000 for the costs of installing the new infrastructure for the city.” (Emphasis added.)

According to minutes from the August 24, 2016 Aberdeen City Council Meeting, a motion to adopt the re-negotiated lease agreement carried.

An interesting wrinkle, as announced by Tesla on November 7, 2016, is that Tesla has decided to stop offering unlimited free use of its network fast-charging stations worldwide beginning this year.

So, other than hopes of helping “attract potential tenants to the center as the first project participant” and providing “nearby restaurants and retailers with additional business” per Mayor Larson, just how, exactly, does the supercharging station tangibly benefit Aberdeen taxpayers or offset “up to $30,000” in reimbursements to Tesla “for the costs of installing the new infrastructure for the city”?

The Daily World reports that “A $30,000 grant will help Aberdeen reimburse Tesla for installing the station.” In light of the agreements hammered out with other cities for charging stations on public land, however, why is Aberdeen on the hook for reimbursing Tesla for any installation costs?

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Another wrinkle:

According to an October 28, 2016 story in The Daily World, five Aberdeen sites were in the running as possible locations for the new Supercharger station, including the parking area for the Center. Larson explains:

“They (Tesla) could have easily worked with Gateway Mall or sought out private ownership, but they were interested in the Gateway Center parking lot.”

Why was a publicly owned site selected instead of a privately owned one? Is city government using public funds to compete with private business?

Additional questions swirl around Mayor Larson’s financial interest in Tesla Motors.

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Some questions:

  1. Did Mayor Larson disclose his financial interest/common stock in Tesla Motor Company anywhere other than on his 2015 and 2016 PDC F-1 forms?
  2. As a candidate, Mayor Larson reported his stock value as $4.5K – $23.9K. After he was elected, he reported the value as $24K – 47.9K. What’s up with that?
  3. The mayor apparently handled all negotiations with Tesla, even though he had/has a financial interest in the motor company (See PDC F-1 forms, above). Did the city know about his financial interest in this company? If so, did it okay the mayor as negotiator of the Tesla lease agreement anyway? Why?

Perhaps a contract negotiator sans an apparent financial interest in the project under negotiation might be a good idea?

While we’re raising questions, what of Shoeless Joe? After the Black Sox scandal, Jackson never set foot on a professional baseball diamond again. He was banned for life along with seven other Chicago players for their alleged involvement in intentionally throwing the 1919 World Series to the Cincinnati Reds. Jackson’s alleged involvement in the conspiracy is still the subject of hot debate. Some maintain that the only things Joe was guilty of were being young, ambitious, gifted, and a bit naive.

Ring any bells?

Kristine Lowder

This guest post was written by Kristine Lowder of Conservelocity. Do you have a post you’d like to share? Email it to us at info@teslarati.com

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Cybertruck

Tesla Cybertruck’s newest trim will undergo massive change in ten days, Musk says

It appears as if the new All-Wheel-Drive trim of Cybertruck won’t be around for too long, however. Elon Musk revealed this morning that it will be around “only for the next 10 days.”

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(Credit: Tesla)

Tesla’s new Cybertruck trim has already gotten the axe from CEO Elon Musk, who said the All-Wheel-Drive configuration of the all-electric pickup will only be available “for the next ten days.”

Musk could mean the price, which is $59,990, or the availability of the trim altogether.

Last night, Tesla launched the All-Wheel-Drive configuration of the Cybertruck, a pickup that comes in at less than $60,000 and features a competitive range and features that are not far off from the offerings of the premium trim.

Tesla launches new Cybertruck trim with more features than ever for a low price

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It was a nice surprise from Tesla, considering that last year, it offered a Rear-Wheel-Drive trim of the Cybertruck that only lasted a few months. It had extremely underwhelming demand because it was only $10,000 cheaper than the next trim level up, and it was missing a significant number of premium features.

Simply put, it was not worth the money. Tesla killed the RWD Cybertruck just a few months after offering it.

With the news that Tesla was offering this All-Wheel-Drive configuration of the Cybertruck, many fans and consumers were encouraged. The Cybertruck has been an underwhelming seller, and this seemed to be a lot of truck for the price when looking at its features:

  • Dual Motor AWD w/ est. 325 mi of range
  • Powered tonneau cover
  • Bed outlets (2x 120V + 1x 240V) & Powershare capability
  • Coil springs w/ adaptive damping
  • Heated first-row seats w/ textile material that is easy to clean
  • Steer-by-wire & Four Wheel Steering
  • 6’ x 4’ composite bed
  • Towing capacity of up to 7,500 lbs
  • Powered frunk

It appears as if this trim of Cybertruck won’t be around for too long, however. Musk revealed this morning that it will be around “only for the next 10 days.”

Musk could mean the price of the truck and not necessarily the ability to order it. However, most are taking it as a cancellation.

If it is, in fact, a short-term availability decision, it is baffling, especially as Tesla fans and analysts claim that metrics like quarterly deliveries are no longer important. This seems like a way to boost sales short-term, and if so many people are encouraged about this offering, why would it be kept around for such a short period of time?

Some are even considering the potential that Tesla axes the Cybertruck program as a whole. Although Musk said during the recent Q4 Earnings Call that Cybertruck would still be produced, the end of the Model S and Model X programs indicates Tesla might be prepared to do away with any low-volume vehicles that do not contribute to the company’s future visions of autonomy.

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The decision to axe the car just ten days after making it available seems like a true head-scratcher.

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Elon Musk

Elon Musk’s Neuralink sparks BCI race in China

One of the most prominent is NeuroXess, which launched in 2021 and is already testing implants in patients.

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Credit: Neuralink

Neuralink, founded by Elon Musk, is helping spark a surge of brain-computer interface (BCI) development in China, where startups are moving quickly into human trials with strong state backing. 

One of the most prominent is NeuroXess, which launched in 2021 and is already testing implants in patients.

Neuralink’s clinical work and public demonstrations have drawn worldwide attention to invasive brain implants that allow patients to control digital devices using their minds. The company is currently running a global clinical trial and is also busy preparing for its next product, Blindsight, which would restore vision to people with visual impairments.

Neuralink’s visibility has helped accelerate similar efforts in China. Beijing last year classified brain-computer interfaces as a strategic sector and issued a roadmap calling for two or three globally competitive companies by 2030, as per the Financial Times. Since February last year, at least 10 clinical trials for invasive brain chips have launched in the country.

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NeuroXess recently reported that a paralyzed patient was able to control a computer cursor within five days of implantation. Founder Tiger Tao credited government support for helping shorten the path from research to trials.

Investment activity has followed the policy push. Industry data show dozens of financing rounds for Chinese BCI startups over the past year, reflecting rising capital interest in the field. Ultimately, while Neuralink remains one of the most closely watched players globally, its momentum has clearly energized competitors abroad.

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Tesla Supercharger vandalized with frozen cables and anti-Musk imagery amid Sweden union dispute

The incident comes amid Tesla’s ongoing labor dispute with IF Metall.

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Credit: Tesla Charging/X

Tesla’s Supercharger site in Vansbro, Sweden, was vandalized during peak winter travel weeks. Images shared to local media showed frozen charging cables and a banner reading “Go home Elon,” which was complete with a graphic of Musk’s controversial gesture. 

The incident comes amid Tesla’s ongoing labor dispute with IF Metall, which has been striking against the company for more than two years over collective bargaining agreements, as noted in a report from Expressen.

Local resident Stefan Jakobsson said he arrived at the Vansbro charging station to find a board criticizing Elon Musk and accusing Tesla of strikebreaking. He also found the charging cables frozen after someone seemingly poured water over them.

“I laughed a little and it was pretty nicely drawn. But it was a bit unnecessary,” Jakobsson said. “They don’t have to do vandalism because they’re angry at Elon Musk.”

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The site has seen heavy traffic during Sweden’s winter sports holidays, with travelers heading toward Sälen and other mountain destinations. Jakobsson said long lines formed last weekend, with roughly 50 Teslas and other EVs waiting to charge.

Tesla Superchargers in Sweden are typically open to other electric vehicle brands, making them a reliable option for all EV owners. 

Tesla installed a generator at the location after sympathy strikes from other unions disrupted power supply to some stations. The generator itself was reportedly not working on the morning of the incident, though it is unclear whether that was connected to the protest.

The dispute between Tesla and IF Metall centers on the company’s refusal to sign a collective agreement covering Swedish workers. The strike has drawn support from other unions, including Seko, which has taken steps affecting electricity supply to certain Tesla facilities. Tesla Sweden, for its part, has insisted that its workers are already fairly compensated and it does not need a collective agreement,

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Jesper Pettersson, press spokesperson for IF Metall, criticized Tesla’s use of generators to keep charging stations running. Still, IF Metall emphasized that it strongly distances itself from the vandalism incident at the Vansbro Supercharger.

“We think it is remarkable that instead of taking the easy route and signing a collective agreement for our members, they are choosing to use every possible means to get around the strike,” Pettersson said.

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