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Mayor tied to Tesla Supercharger site questioned over ‘conflict of interest’
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
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.)
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:
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, Utilities – City 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]
- 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?
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.
Some questions:
- 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?
- 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?
- 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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Tesla’s Apple CarPlay ambitions are not dead, they’re still in the works
For what it’s worth, as a Tesla owner, I don’t particularly see the need for CarPlay, as I have found the in-car system that the company has developed to be superior. However, many people are in love with CarPlay simply because, when it’s in a car that is capable, it is really great.
Tesla’s Apple CarPlay ambitions appeared to be dead in the water after a large amount of speculation late last year that the company would add the user interface seemed to cool down after several weeks of reports.
However, it appears that CarPlay might make its way to Tesla vehicles after all, as a recent report seems to indicate that it is still being worked on by software teams for the company.
The real question is whether it is truly needed or if it is just a want by so many owners that Tesla is listening and deciding to proceed with its development.
Back in November, Bloomberg reported that Tesla was in the process of testing Apple CarPlay within its vehicles, which was a major development considering the company had resisted adopting UIs outside of its own for many years.
Nearly one-third of car buyers considered the lack of CarPlay as a deal-breaker when buying their cars, a study from McKinsey & Co. outlined. This could be a driving decision in Tesla’s inability to abandon the development of CarPlay in its vehicles, especially as it lost a major advantage that appealed to consumers last year: the $7,500 EV tax credit.
Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
Although we saw little to no movement on it since the November speculation, Tesla is now reportedly in the process of still developing the user interface. Mark Gurman, a Bloomberg writer with a weekly newsletter, stated that CarPlay is “still in the works” at Tesla and that more concrete information will be available “soon” regarding its development.
While Tesla already has a very capable and widely accepted user interface, CarPlay would still be an advantage, considering many people have used it in their vehicles for years. Just like smartphones, many people get comfortable with an operating system or style and are resistant to using a new one. This could be a big reason for Tesla attempting to get it in their own cars.
Tesla gets updated “Apple CarPlay” hack that can work on new models
For what it’s worth, as a Tesla owner, I don’t particularly see the need for CarPlay, as I have found the in-car system that the company has developed to be superior. However, many people are in love with CarPlay simply because, when it’s in a car that is capable, it is really great.
It holds one distinct advantage over Tesla’s UI in my opinion, and that’s the ability to read and respond to text messages, which is something that is available within a Tesla, but is not as user-friendly.
With that being said, I would still give CarPlay a shot in my Tesla. I didn’t particularly enjoy it in my Bronco Sport, but that was because Ford’s software was a bit laggy with it. If it were as smooth as Tesla’s UI, which I think it would be, it could be a really great addition to the vehicle.
With the launch of a new trim level for the Model Y last night, something almost went unnoticed — the loss of a moniker that Tesla just recently added to a couple of its variants of the all-electric crossover.
Tesla launched the Model Y All-Wheel-Drive last night, competitively priced at $41,990, but void of the luxurious features that are available within the Premium trims.
Upon examination of the car, one thing was missing, and it was noticeable: Tesla dropped the use of the “Standard” moniker to identify its entry-level offerings of the Model Y.
The Standard Model Y vehicles were introduced late last year, primarily to lower the entry price after the U.S. EV tax credit changes were made. Tesla stripped some features like the panoramic glass roof, premium audio, ambient lighting, acoustic-lined glass, and some of the storage.
Last night, it simply switched the configurations away from “Standard” and simply as the Model Y Rear-Wheel-Drive and Model Y All-Wheel-Drive.
There are three plausible reasons for this move, and while it is minor, there must be an answer for why Tesla chose to abandon the name, yet keep the “Premium” in its upper-level offerings.
“Standard” carried a negative connotation in marketing
Words like “Standard” can subtly imply “basic,” “bare-bones,” or “cheap” to consumers, especially when directly contrasted with “Premium” on the configurator or website. Dropping it avoids making the entry-level Model Y feel inferior or low-end, even though it’s designed for affordability.
Tesla likely wanted the base trim to sound neutral and spec-focused (e.g., just “RWD” highlights drivetrain rather than feature level), while “Premium” continues to signal desirable upgrades, encouraging upsells to higher-margin variants.
Simplifying the overall naming structure for less confusion
The initial “Standard vs. Premium” split (plus Performance) created a somewhat clunky hierarchy, especially as Tesla added more variants like Standard Long Range in some markets or the new AWD base.
Removing “Standard” streamlines things to a more straightforward progression (RWD → AWD → Premium RWD/AWD → Performance), making the lineup easier to understand at a glance. This aligns with Tesla’s history of iterative naming tweaks to reduce buyer hesitation.
Elevating brand perception and protecting perceived value
Keeping “Premium” reinforces that the bulk of the Model Y lineup (especially the popular Long Range models) remains a premium product with desirable features like better noise insulation, upgraded interiors, and tech.
Eliminating “Standard” prevents any dilution of the Tesla brand’s upscale image—particularly important in a competitive EV market—while the entry-level variants can quietly exist as accessible “RWD/AWD” options without drawing attention to them being decontented versions.
You can check out the differences between the “Standard” and “Premium” Model Y vehicles below:
@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper
Elon Musk
Tesla bull sees odds rising of Tesla merger after Musk confirms SpaceX-xAI deal
Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.
A prominent Tesla (NASDAQ:TSLA) bull has stated that the odds are rising that Tesla could eventually merge with SpaceX and xAI, following Elon Musk’s confirmation that the private space company has combined with his artificial intelligence startup.
Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.
“In our view there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The view is this growing AI ecosystem will focus on Space and Earth together…..and Musk will look to combine forces,” Ives wrote in a post on X.
Ives’ comments followed confirmation from Elon Musk late Monday that SpaceX has merged with xAI. Musk stated that the merger creates a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data.
In a post on SpaceX’s official website, Elon Musk added that the combined company is aimed at enabling space-based AI compute, stating that within two to three years, space could become the lowest-cost environment for generating AI processing power. The transaction reportedly values the combined SpaceX-xAI entity at roughly $1.25 trillion.
Tesla, for its part, has already increased its exposure to xAI, announcing a $2 billion investment in the startup last week in its Q4 and FY 2025 update letter.
While merger speculation has intensified, notable complications could emerge if SpaceX/xAI does merge with Tesla, as noted in a report from Investors Business Daily.
SpaceX holds major U.S. government contracts, including with the Department of Defense and NASA, and xAI’s Grok is being used by the U.S. Department of War. Tesla, for its part, maintains extensive operations in China through Gigafactory Shanghai and its Megapack facility.
Tesla’s Apple CarPlay ambitions are not dead, they’re still in the works
Tesla brings closure to Model Y moniker with launch of new trim level
