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VW prepares to spend first $300M of $2B on EV charging infrastructure project
Volkswagen will designate $300 million by 2019 to establish a network of more than 450 electric vehicle charging stations in 11 U.S. major metropolitan areas and along high traffic highways. The announcement came this week through Volkswagen’s new wholly owned subsidiary called Electrify America, which will support increased use of zero emissions vehicles (ZEVs) in the U.S.
The initiative is part of the Federal Trade Commission agreement with Volkswagen to compensate for “Dieselgate,” the systematic and willful deceit of U.S. emissions regulators through special software in Volkswagen’s diesel vehicles. Electrify America is a product of Volkswagen’s 2016 court settlement with the California Air Resources Board and the U.S. EPA. We recently reported that the VW emissions scandal has given life to a new generation of electric vehicle start ups like Rivian Automotive. The Illinois-based electric car company has leased land to a logistics company that’s using the space as a temporary holding area for the Dieselgate VWs. Teslarati commissioned a videographer to capture drone shots showing roughly 14,000 affected cars waiting to be disposed of as a result of the scandal.
Thousands of VW Diesels being Stored at Rivian Factory, Photo: Jim Finch for Teslarati
Electrify America will support and promote greater availability of customer-friendly infrastructure in areas with high demand for ZEVs. With hundreds of stations with non-proprietary chargers across the U.S., Electrify America‘s first National ZEV investment cycle will make it easier and faster for millions of Americans to charge their electric vehicles while also “encouraging more drivers to explore and embrace electric driving.”
Electrify America‘s first stage plans
Electrify America has released information through a press release and website that it will establish a network of 2,500+ non-proprietary electric vehicle chargers at more than 450 station sites.
- Approximately 240 charging station sites will be installed or under development outside of California by the end of the first cycle.
- These sites will be located along high-traffic corridors between metropolitan areas, including multiple cross country routes.
- They will include between four and ten 150 kW and 320 kW individual DC fast chargers at each location.
- Charging sites will be present in 39 U.S. states.
- They will be built along corridors with a high correlation with the EV Charging Corridors recently designated by the Federal government.
- Sites will be, on average, about 66 miles apart, with no more than 120 miles between stations.
Comparisons to Tesla’s Supercharger network
The extent and speed of Electrify America‘s planned installation schedule roughly parallels the early years of Tesla’s DC Supercharger network in the U.S., which began in late 2012.
The new Electrify America chargers will be non-proprietary. Tesla vehicles use a proprietary plug design, although the company sells compatible adapters. Tesla’s DC CHAdeMO adapter is limited to 50 kilowatts of power.
With proposed charging power set at 320 kilowatts, the Electrify America network would be the first high power contender, at scale, to the Tesla Supercharger network. Tesla is the only EV manufacturer right now capable of charging vehicles at up to 120 kW, which equates to about 170 miles of range in as little as 30 minutes. Tesla has built a fast DC Supercharger network that supports maximum theoretical charging rates of up to 145 kilowatts, according to the company’s website.
The Electrify America network will provide 2500+ chargers at more than 450 stations. At this writing, Tesla Superchargers are at over 2,200 charging stalls at 350 locations across the U.S.
The proximity of Electrify America‘s chargers along frequently traveled corridors means that many shorter range ZEVs available today will be able to use this network. Most Tesla sites are located along highways away from large metropolitan areas and are primarily intended for use by travelers on long-distance trips.
It seems likely that the Electrify America chargers will be located in existing public infrastructure like rest stops. Tesla has a growing network of Destination Charging Partners with dedicated Tesla Wall Connectors at their properties. The company’s website describes how these are primarily destinations where a Tesla owner would stay for several hours at a time, such as ski resorts, restaurants, hotels and others. They are safe, well-lit, and infuse a feeling of security when Tesla owners need to recharge their vehicles.
Electrify America stations will be designed to support many existing and anticipated charging technology needs, including evolving industry standards like the Combined Charging Standard (CCS) and the Open Charge Point Protocol. Last year, Tesla joined the European CharIN consortium that is leading the development of CCS.
Tesla reminds its owners that there are many factors that affect the actual charge rate, including ambient temperature, utility grid restrictions, and charging traffic. Tesla constantly incorporates owner feedback into its maintenance and research and development efforts, offering a distinct consumer experience for Tesla owners who use its Superchargers.
Tesla has officially launched public Robotaxi rides in Austin, Texas, without a Safety Monitor in the vehicle, marking the first time the company has removed anyone from the vehicle other than the rider.
The Safety Monitor has been present in Tesla Robotaxis in Austin since its launch last June, maintaining safety for passengers and other vehicles, and was placed in the passenger’s seat.
Tesla planned to remove the Safety Monitor at the end of 2025, but it was not quite ready to do so. Now, in January, riders are officially reporting that they are able to hail a ride from a Model Y Robotaxi without anyone in the vehicle:
I am in a robotaxi without safety monitor pic.twitter.com/fzHu385oIb
— TSLA99T (@Tsla99T) January 22, 2026
Tesla started testing this internally late last year and had several employees show that they were riding in the vehicle without anyone else there to intervene in case of an emergency.
Tesla has now expanded that program to the public. It is not active in the entire fleet, but there are a “few unsupervised vehicles mixed in with the broader robotaxi fleet with safety monitors,” Ashok Elluswamy said:
Robotaxi rides without any safety monitors are now publicly available in Austin.
Starting with a few unsupervised vehicles mixed in with the broader robotaxi fleet with safety monitors, and the ratio will increase over time. https://t.co/ShMpZjefwB
— Ashok Elluswamy (@aelluswamy) January 22, 2026
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
The Robotaxi program also operates in the California Bay Area, where the fleet is much larger, but Safety Monitors are placed in the driver’s seat and utilize Full Self-Driving, so it is essentially the same as an Uber driver using a Tesla with FSD.
In Austin, the removal of Safety Monitors marks a substantial achievement for Tesla moving forward. Now that it has enough confidence to remove Safety Monitors from Robotaxis altogether, there are nearly unlimited options for the company in terms of expansion.
While it is hoping to launch the ride-hailing service in more cities across the U.S. this year, this is a much larger development than expansion, at least for now, as it is the first time it is performing driverless rides in Robotaxi anywhere in the world for the public to enjoy.
Tesla has scheduled its Earnings Call for Q4 and Full Year 2025 for next Wednesday, January 28, at 5:30 p.m. EST, and investors are already preparing to get some answers from executives regarding a wide variety of topics.
The company accepts several questions from retail investors through the platform Say, which then allows shareholders to vote on the best questions.
Tesla does not answer anything regarding future product releases, but they are willing to shed light on current timelines, progress of certain projects, and other plans.
There are five questions that range over a variety of topics, including SpaceX, Full Self-Driving, Robotaxi, and Optimus, which are currently in the lead to be asked and potentially answered by Elon Musk and other Tesla executives:
- You once said: Loyalty deserves loyalty. Will long-term Tesla shareholders still be prioritized if SpaceX does an IPO?
- Our Take – With a lot of speculation regarding an incoming SpaceX IPO, Tesla investors, especially long-term ones, should be able to benefit from an early opportunity to purchase shares. This has been discussed endlessly over the past year, and we must be getting close to it.
- When is FSD going to be 100% unsupervised?
- Our Take – Musk said today that this is essentially a solved problem, and it could be available in the U.S. by the end of this year.
- What is the current bottleneck to increase Robotaxi deployment & personal use unsupervised FSD? The safety/performance of the most recent models or people to monitor robots, robotaxis, in-car, or remotely? Or something else?
- Our Take – The bottleneck seems to be based on data, which Musk said Tesla needs 10 billion miles of data to achieve unsupervised FSD. Once that happens, regulatory issues will be what hold things up from moving forward.
- Regarding Optimus, could you share the current number of units deployed in Tesla factories and actively performing production tasks? What specific roles or operations are they handling, and how has their integration impacted factory efficiency or output?
- Our Take – Optimus is going to have a larger role in factories moving forward, and later this year, they will have larger responsibilities.
- Can you please tie purchased FSD to our owner accounts vs. locked to the car? This will help us enjoy it in any Tesla we drive/buy and reward us for hanging in so long, some of us since 2017.
- Our Take – This is a good one and should get us some additional information on the FSD transfer plans and Subscription-only model that Tesla will adopt soon.
Tesla will have its Earnings Call on Wednesday, January 28.
Elon Musk shared an incredible detail about Tesla Cybercab’s potential efficiency, as the company has hinted in the past that it could be one of the most affordable vehicles to operate from a per-mile basis.
ARK Invest released a report recently that shed some light on the potential incremental cost per mile of various Robotaxis that will be available on the market in the coming years.
The Cybercab, which is detailed for the year 2030, has an exceptionally low cost of operation, which is something Tesla revealed when it unveiled the vehicle a year and a half ago at the “We, Robot” event in Los Angeles.
Musk said on numerous occasions that Tesla plans to hit the $0.20 cents per mile mark with the Cybercab, describing a “clear path” to achieving that figure and emphasizing it is the “full considered” cost, which would include energy, maintenance, cleaning, depreciation, and insurance.
Probably true
— Elon Musk (@elonmusk) January 22, 2026
ARK’s report showed that the Cybercab would be roughly half the cost of the Waymo 6th Gen Robotaxi in 2030, as that would come in at around $0.40 per mile all in. Cybercab, at scale, would be at $0.20.
Credit: ARK Invest
This would be a dramatic decrease in the cost of operation for Tesla, and the savings would then be passed on to customers who choose to utilize the ride-sharing service for their own transportation needs.
The U.S. average cost of new vehicle ownership is about $0.77 per mile, according to AAA. Meanwhile, Uber and Lyft rideshares often cost between $1 and $4 per mile, while Waymo can cost between $0.60 and $1 or more per mile, according to some estimates.
Tesla’s engineering has been the true driver of these cost efficiencies, and its focus on creating a vehicle that is as cost-effective to operate as possible is truly going to pay off as the vehicle begins to scale. Tesla wants to get the Cybercab to about 5.5-6 miles per kWh, which has been discussed with prototypes.
Additionally, fewer parts due to the umboxed manufacturing process, a lower initial cost, and eliminating the need to pay humans for their labor would also contribute to a cheaper operational cost overall. While aspirational, all of the ingredients for this to be a real goal are there.
It may take some time as Tesla needs to hammer the manufacturing processes, and Musk has said there will be growing pains early. This week, he said regarding the early production efforts:
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
BREAKING: Tesla launches public Robotaxi rides in Austin with no Safety Monitor
Tesla Earnings Call: Top 5 questions investors are asking
