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Tesla announces new Supercharger pricing model: fee per kWh and tiered by power
Tesla has announced an update to its Supercharger program that involves a new pricing model billed per kilowatt-hour or through a two-tiered pricing structure that will be based on charging power and duration of use, depending on region-specific regulations.
Though the preferred pricing model is billed per kilowatt-hour, says Tesla through its blog post, some regions prevent non-utility companies from selling energy to consumers. In these instances, Tesla will charge a Supercharger fee billed per minute of use as opposed to by the kilowatt-hour. Vehicles that charge at or below 60 kW will fall into “tier 1” and billed at half the cost of “tier 2”. Tesla cars charging above 60 kW will fall under the “tier 2” pricing structure.
Today’s update to Tesla’s Supercharger program follows a recent announcement made by the Silicon Valley-based electric car company that it will impose a $.40 per minute idle fee on vehicles that remain plugged in after it has already reached its charging limit.
“We designed the Supercharger network to enable a seamless, enjoyable road trip experience. Therefore, we understand that it can be frustrating to arrive at a station only to discover fully charged Tesla cars occupying all the spots. To create a better experience for all owners, we’re introducing a fleet-wide idle fee that aims to increase Supercharger availability.”, said Tesla through a press release last month.
All Tesla vehicles ordered after January 15, 2017 will continue to receive 400 kWh of free Supercharger credits per year, which is equivalent to approximately 1,000 miles of long-distance driving. Any usage exceeding 400 kWh will incur a usage fee that will either be charged per kilowatt-hour or by the minute. Rates within North America will vary by state or province, while Tesla Supercharger use overseas will incur a fixed rate set by country.
Tesla notes that it does not intend to profit from the new fee structure. Rather, the company is only looking to recover a portion of the costs and set up a fair system for everyone.
Example of Supercharger fees by state
- California – $0.20 per kWh
- Connecticut
- $0.26 per minute for tier 2
- $0.13 per minute for tier 1
- Florida – $0.13 per kWh
- Georgia
- $0.16 per minute for tier 2
- $0.08 per minute for tier 1
- Massachusetts – $0.22 per kWh
- New Jersey
- $0.20 per minute for tier 2
- $0.10 per minute for tier 1
- New York – $0.19 per kWh
- Pennsylvania
- $0.20 per minute for tier 2
- $0.10 per minute for tier 1
We’ve provided Tesla’s full announcement below, which also includes a link to the full list of charging fees by region.
Building the Supercharger Network for the Future
Tesla created the Supercharger network to make long-distance travel a seamless experience for drivers. Cars have always represented independence and the freedom to travel wherever and whenever people want to go. To enable this freedom, building a charging network that provides quick, convenient, and long-distance travel is critical to the adoption of electric vehicles. One of our top priorities this year is to significantly increase capacity of our Supercharger network.
In November, we announced a change in the Supercharger program that allows us to reinvest in the network, accelerate its growth, relieve congestion, and bring all Tesla owners, current and Model 3, the best Supercharging experience. Tesla Model S and Model X cars ordered after January 15, 2017 will receive 400 kWh (kilowatt-hour) of free Supercharging credits (roughly 1,000 miles) annually on the anniversary of their delivery. We carefully considered current Supercharger usage and found that 400 kWh covers the annual long-distance driving needs of the majority of our owners. As a result, most owners will continue to enjoy the benefits of Supercharging on road trips at no additional cost.
If customers travel beyond their annual credit, they will be charged a small fee to Supercharge. In North America, pricing is fixed within each state or province; overseas, pricing is fixed within each country. In most regions, Tesla owners will pay per kWh as it’s the fairest way to pay for the exact energy used. However, due to local regulations, in several regions we will charge per minute of usage instead, though we are actively working with regulators to update the rules. What’s important is that in every region, Supercharging will remain simple, seamless and always significantly cheaper than gasoline. We are only aiming to recover a portion of our costs and set up a fair system for everyone; this will never be a profit center for Tesla. Customers can just plug in, charge up, and access their charging history on our website.
To put the affordability of Supercharging into perspective, customers will pay about $15 for a road trip from San Francisco to Los Angeles, about $120 from Los Angeles to New York, about €60 from Paris to Rome, and about ¥400 from Beijing to Shanghai.
We are excited to continue the expansion of the world’s fastest and most sophisticated charging network. Additional program details are available here.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk strikes down reports on SpaceX IPO rumors
Tesla’s Robotaxi dreams just took a massive step toward reality
