Connect with us

News

Top 3 reasons why having to pay for Tesla Supercharger use won’t deter buyers

Published

on

The “will they or won’t they?” argument over Tesla providing free-for-life unlimited Supercharger use is finally receiving more clarity. The company announced that it will provide roughly 1,000 free miles of energy before charging a fee for Supercharger use on cars ordered after January 1, 2017.

But is this the end for Tesla? Will people be lining up in throngs to cancel their Model 3 reservations? Boycotting Tesla and running to buy another car? Nope, not even a little bit. Here are some of the top reasons why this new announcement won’t deter buyers.

1. Pay less for your Tesla

I’ll jump right into arguably the best reason first. The vast majority of new cars buyers have a budget. That reality means having to choose carefully on the options to equip your Tesla with. By decoupling Supercharger use from the price of the vehicle, Tesla is theoretically able to reduce the price barrier to entry.

Plus, you wouldn’t necessarily want to incur a pre-estimated Supercharger energy cost, charged by Tesla, on a vehicle that may not see its fair share of long distance travel and Supercharger use.

Advertisement

Tesla is anticipated to publish details for its new Supercharging program by year end. But regardless of what will be announced, crowdsourced Model 3 reservation data captured through Model3Tracker.info suggests that it won’t even matter. Nearly 80% of Model 3 reservation holders said they were willing to pay an extra fee for access to the Supercharger network. This is even prior to Tesla announcing that it would begin charging for Supercharger use after the allotted 400 kWh cap (~1,000 miles).

2. You have to pay for fuel either way

The Tesla team knew and has repeatedly said that in order to further the adoption of sustainable transport, they had to make a car at least as compelling as its gasoline-powered counterpart. Since the Model 3 will be at least as compelling as a comparable gasoline car, would-be buyers aren’t going to ditch a vehicle that will require paying for fueling in favor of another vehicle that, too, will incur a cost on fuel. This is especially true when the majority of your charging can be done at home, which is infinitely more convenient, and more cost effective, than stopping at a gas station.

Charging at home, in most markets, is very favorable to the cost of gas. Charging on the Supercharger network beyond your free credits will also be favorable and “cost less than the price of filling up a comparable gas car”, according to Tesla. Mix that in with a growing destination program and I’m confident your Tesla road trips will still be economical.

3. Supercharger Credits can be rewarded

When I conceded that Supercharger credits may work after all, I talked about how Tesla could have fun with it. It’s your 1 year anniversary of ownership, take a trip on us! It’s Nikola Tesla’s birthday… You just reached 50,000 gasoline free miles… Aside from the ability to award additional free credits at will, Tesla could also decide to increase the amount of free credits they give per year. I truly believe Tesla is a good company that does right by its customers. For that reason, I think they aimed a bit low with the credit amounts to ensure they can afford to meet the promised amount. I also believe that if they use data to analyze the costs (they will) and find out that they can afford more than they are giving, they’ll do that too.

Advertisement

And remember …

At the end of the day, there’s no free lunch. Reasonable buyers know the truth. Free for life was not sustainable and a bit too good to be true. Model 3 is shaping up to be about the coolest and most important car of our lifetimes. For those of us stateside, an ode to the fighting spirit of America. Supporting a little, unknown company fighting against all odds – especially in light of current events – and completely upending an entire industry is worth every penny.

Advertisement
Comments

News

Tesla confirms Full Self-Driving still isn’t garnering interest from lagging competitors

Published

on

Credit: Tesla

Tesla executive Sendil Palani confirmed in a post on social media platform X that Full Self-Driving, despite being the most robust driver assistance program in the United States, still isn’t garnering any interest from lagging competitors.

Tesla has said on several occasions in the past that it has had discussions with a competing carmaker to license its Full Self-Driving suite. While it never confirmed which company it was, many pointed toward Ford as the one Tesla was holding dialogue with.

At the time, Ford CEO Jim Farley and Tesla CEO Elon Musk had a very cordial relationship.

Despite Tesla’s confirmation, which occurred during both the Q2 2023 and Q1 2024 Earnings Calls, no deal was ever reached. Whichever “major OEM” Tesla had talked to did not see the benefit. Even now, Tesla has not found that dance partner, despite leading every company in the U.S. in self-driving efforts by a considerable margin.

Advertisement

Elon Musk says Tesla Robotaxi launch will force companies to license Full Self-Driving

Palani seemed to confirm that Tesla still has not found any company that is remotely interested in licensing FSD, as he said on X that “despite our best efforts to share the technology,” the company has found that it “has not been proven to be easy.”

Advertisement

The question came just after one Tesla fan on X asked whether Tesla would continue manufacturing vehicles.

Because Tesla continues to expand its lineup of Model Y, it has plans to build the Cybercab, and there is still an immediate need for passenger vehicles, there is no question that the company plans to continue scaling its production.

However, Palani’s response is interesting, especially considering that it was in response to the question of whether Tesla would keep building cars.

Perhaps if Tesla could license Full Self-Driving to enough companies for the right price, it could simply sell the suite to car companies that are building vehicles, eliminating the need for Tesla to build its own.

Advertisement

While it seems like a reach because of Tesla’s considerable fan base, which is one of the most loyal in the automotive industry, the company could eventually bail on manufacturing and gain an incredible valuation by simply unlocking self-driving for other manufacturers.

The big question regarding why Tesla can’t find another company to license FSD is simply, “Why?”

Do they think they can solve it themselves? Do they not find FSD as valuable or effective? Many of these same companies didn’t bat an eye when Tesla started developing EVs, only to find themselves years behind. This could be a continuing trend.

Advertisement
Continue Reading

News

Tesla exec pleads for federal framework of autonomy to U.S. Senate Committee

Published

on

Credit: Tesla

Tesla executive Lars Moravy appeared today in front of the U.S. Senate Commerce Committee to highlight the importance of modernizing autonomy standards by establishing a federal framework that would reward innovation and keep the country on pace with foreign rivals.

Moravy, who is Tesla’s Vice President of Vehicle Engineering, strongly advocated for Congress to enact a national framework for autonomous vehicle development and deployment, replacing the current patchwork of state-by-state rules.

These rules have slowed progress and kept companies fighting tooth-and-nail with local legislators to operate self-driving projects in controlled areas.

Tesla already has a complete Robotaxi model, and it doesn’t depend on passenger count

Advertisement

Moravy said the new federal framework was essential for the U.S. to “maintain its position in global technological development and grow its advanced manufacturing capabilities.

He also said in a warning to the committee that outdated regulations and approval processes would “inhibit the industry’s ability to innovate,” which could potentially lead to falling behind China.

Being part of the company leading the charge in terms of autonomous vehicle development in the U.S., Moravy highlighted Tesla’s prowess through the development of the Full Self-Driving platform. Tesla vehicles with FSD engaged average 5.1 million miles before a major collision, which outpaces that of the human driver average of roughly 699,000 miles.

Moravy also highlighted the widely cited NHTSA statistic that states that roughly 94 percent of crashes stem from human error, positioning autonomous vehicles as a path to dramatically reduce fatalities and injuries.

Advertisement

Skeptics sometimes point to cybersecurity concerns within self-driving vehicles, which was something that was highlighted during the Senate Commerce Committee hearing, but Moravy said, “No one has ever been able to take over control of our vehicles.”

Advertisement

This level of security is thanks to a core-embedded central layer, which is inaccessible from external connections. Additionally, Tesla utilizes a dual cryptographic signature from two separate individuals, keeping security high.

Moravy also dove into Tesla’s commitment to inclusive mobility by stating, “We are committed with our future products and Robotaxis to provide accessible transportation to everyone.” This has been a major point of optimism for AVs because it could help the disabled, physically incapable, the elderly, and the blind have consistent transportation.

Overall, Moravy’s testimony blended urgency about geopolitical competition, especially China, with concrete safety statistics and a vision of the advantages autonomy could bring for everyone, not only in the U.S., but around the world, as well.

Advertisement
Continue Reading

News

Tesla Model Y lineup expansion signals an uncomfortable reality for consumers

Published

on

Credit: Tesla

Tesla launched a new configuration of the Model Y this week, bringing more complexity to its lineup of the vehicle and adding a new, lower entry point for those who require an All-Wheel-Drive car.

However, the broadening of the Model Y lineup in the United States could signal a somewhat uncomfortable reality for Tesla fans and car buyers, who have been vocal about their desire for a larger, full-size SUV.

Tesla has essentially moved in the opposite direction through its closure of the Model X and its continuing expansion of a vehicle that fits the bill for many, but not all.

Tesla brings closure to Model Y moniker with launch of new trim level

Advertisement

While CEO Elon Musk has said that there is the potential for the Model Y L, a longer wheelbase configuration of the vehicle, to enter the U.S. market late this year, it is not a guarantee.

Instead, Tesla has prioritized the need to develop vehicles and trim levels that cater to the future rollout of the Robotaxi ride-hailing service and a fully autonomous future.

But the company could be missing out on a massive opportunity, as SUVs are a widely popular body style in the U.S., especially for families, as the tighter confines of compact SUVs do not support the needs of a large family.

Although there are other companies out there that manufacture this body style, many are interested in sticking with Tesla because of the excellent self-driving platform, expansive charging infrastructure, and software performance the vehicles offer.

Advertisement

Additionally, the lack of variety from an aesthetic and feature standpoint has caused a bit of monotony throughout the Model Y lineup. Although Premium options are available, those three configurations only differ in terms of range and performance, at least for the most part, and the differences are not substantial.

Minor Expansions of the Model Y Fail to Address Family Needs for Space

Offering similar trim levels with slight differences to cater to each consumer’s needs is important. However, these vehicles keep a constant: cargo space and seating capacity.

Larger families need something that would compete with vehicles like the Chevrolet Tahoe, Ford Expedition, or Cadillac Escalade, and while the Model X was its largest offering, that is going away.

Tesla could fix this issue partially with the rollout of the Model Y L in the U.S., but only if it plans to continue offering various Model Y vehicles and expanding on its offerings with that car specifically. There have been hints toward a Cyber-inspired SUV in the past, but those hints do not seem to be a drastic focus of the company, given its autonomy mission.

Advertisement

Tesla appears to be mulling a Cyber SUV design

Model Y Expansion Doesn’t Boost Performance, Value, or Space

You can throw all the different badges, powertrains, and range ratings on the same vehicle, it does not mean it’s going to sell better. The Model Y was already the best-selling vehicle in the world on several occasions. Adding more configurations seems to be milking it.

The true need of people, especially now that the Model X is going away, is going to be space. What vehicle fits the bill of a growing family, or one that has already outgrown the Model Y?

Not Expanding the Lineup with a New Vehicle Could Be a Missed Opportunity

The U.S. is the world’s largest market for three-row SUVs, yet Tesla’s focus on tweaking the existing Model Y ignores this. This could potentially result in the Osborne Effect, as sales of current models without capturing new customers who need more seating and versatility.

Advertisement

Expansions of the current Model Y offerings risk adding production complexity without addressing core demands, and given that the Model Y L is already being produced in China, it seems like it would be a reasonable decision to build a similar line in Texas.

Listening to consumers means introducing either the Model Y L here, or bringing a new, modern design to the lineup in the form of a full-size SUV.

Continue Reading