OFFICIAL: Tesla's Supercharging Network Will No Longer Be FREE As Of 2017 — FULL Details Here!

Tesla's blog post follows:

An Update to Our Supercharging Program

The Tesla Team November 7, 2016

Four years ago, Tesla introduced the Supercharger Network – the world’s fastest charging solution – to enable convenient long distance travel. Today, more than 4,600 Superchargers allow over 160,000 Tesla owners to drive across the continental U.S., from the Arctic Circle to the south of Spain, and across all of the population centers in China and Japan, among many other places. Supercharging has even helped owners drive their Teslas around the world.

We’ve designed our network so that all customers have access to a seamless and convenient charging experience when they’re away from home, as our intention has always been for Supercharging to enable long distance travel. That’s why today we’re announcing a change to the economics of Supercharging – one that allows us to reinvest in the network, accelerate its growth and bring all owners, current and future, the best Supercharging experience.

Ensuring Use for Long-Distance Travel
For Teslas ordered after January 1, 2017, 400 kWh of free Supercharging credits (roughly 1,000 miles) will be included annually so that all owners can continue to enjoy free Supercharging during travel. Beyond that, there will be a small fee to Supercharge which will be charged incrementally and cost less than the price of filling up a comparable gas car. All cars will continue to come standard with the onboard hardware required for Supercharging.

We will release the details of the program later this year, and while prices may fluctuate over time and vary regionally based on the cost of electricity, our Supercharger Network will never be a profit center.

These changes will not impact current owners or any new Teslas ordered before January 1, 2017, as long as delivery is taken before April 1, 2017.

The Road Ahead
Just as you would charge your cell phone, we believe the best way to charge your car is either at home or at work, during the hours you’re not using it. For travelers, the Supercharger Network has become a powerful, unique benefit of Tesla ownership. As we approach the launch of Model 3, this update will enable us to greatly expand our Supercharger Network, providing customers with the best possible user experience and bringing sustainable transport to even more people.

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TheSteve - 11/7/2016 11:48:24 PM

-2 Boost

It makes perfect sense. Fueling up your car has value, and there's nothing wrong with paying for that. Besides, recharging an EVs batteries is alleged to be a LOT cheaper than buying dino juice to get you as far.

Also, purely from a business standpoint, when you're starting up a new business or offering a new product, it's common to give incentives to secure customers. Tesla did that in the way of free charging. It's also common that when you have customer demand for your product, and you can sustain that demand without offering incentives, then usually, those incentives are withdrawn. It's a common practice.

Lastly, for existing Tesla owners with free charging included with the car's purchase: you're unaffected! This change only applies to new purchases made in the future.

SanJoseDriver - 11/8/2016 2:34:12 PM

-1 Boost

Wow, I actually agree with TheSteve.

Also keep in mind that all Tesla owners will get 400KWh of free charging each year. That is about 1,000-1,200 miles on the Model S or X and 1,400-1,600 miles on the Model 3.

I thought Model 3 owners would have to pay an extra $2,000 or so for supercharging, so this is actually a much better deal for the majority of owners.

The big question I have is whether legacy cars that did not purchase the supercharging option (when it was optional) will be able to utilize the new system.

mre30 - 11/8/2016 8:51:26 AM

+7 Boost

One of the biggest questions with Tesla is "...what business is Tesla really in..?"

Is it:

(a) A government ZEV credit trading company?

(b) A solar panel/"green energy stuff" marketing company?

(c) A used car company and/or automotive retailer (aka CARMAX)?

(d) A private equity company?

(e) A car manufacturer?

(f) A battery manufacturer?

(e) A car refueling / service station manager (they can spin off the Supercharger network, sell it to the Midwestern Convenience store chain Kum and Go (yes its a real company ..https://www.kumandgo.com/) and the whole thing can be renamed "Kum Supercharge" or "Supercharged Kum and Go"

Tesla is a little of all of those - which is part of my problem with it. There is so much 'noise' around what they really do, that it is hard to tell exactly how successful or unsuccessful Tesla will actually be.

vdiv - 11/8/2016 9:23:52 AM

-2 Boost

Why is that a problem? It doesn't fit in you preconceived notions of what a company should be? It seems quite straight-forward, Tesla wants to change how we produce, store, and use energy for transportation.

SanJoseDriver - 11/8/2016 2:36:39 PM

-4 Boost

Government welfare? Tesla was the first company to pay off their loan (with interest). Meanwhile, GM got a free ride. I would love to see all subsidies dropped for both electrics and oil, then see which companies and cars survive.

mre30 - 11/8/2016 5:10:58 PM

+7 Boost

Further, Elon Musk is very good at marketing. Unfortunately, marketing isn't a very sustainable competitive advantage. Because Tesla has no real other competitive advantages, its stock premium is rich. Here's what some think..

- cars are a 10% EBIT margin business which is capital intensive, highly cyclical, intensely competitive and consequently one which does not warrant a high multiple.

- batteries are a 10% EBIT margin which suffers from the typical technology problem: constant improvement and deflationary costs. large batteries such as the powerwall are at such an early stage that the player with leading market share today could easily lose it tomorrow to a competitor with better technology and marketing.

- solar panels are a 5% EBIT margin business which sells an effectively undifferentiated, commoditized, product which is highly cyclical and capital intensive. Reselling solar panels manufactured by someone else isn't much better.

- Tesla has effectively no patent protection, and while this is fantastic for the advancement of humanity, it means that Tesla stock, which is what we care about, shouldn't trade at a level which suggests they have some sort of enduring competitive advantage through innovation or patents.

Tesla is in unattractive, capital intensive businesses with low margins trading as if it is something special - it the opinion of many that it is not.

vdiv - 11/8/2016 9:20:08 AM

-3 Boost

Are you ready to pay that tax too? It seems to be the fairest way.

vdiv - 11/8/2016 10:41:31 AM

-4 Boost

No you don't. The gas taxes you pay do not cover the infrastructure or even the oil companies subsidies and pale in comparison to the sales, extra registration and property taxes that Tesla owners pay.

vdiv - 11/8/2016 1:10:20 PM

-3 Boost

Wait, I thought you had a good argument to make rather than just an obscenity...
Delusional indeed! :P

SanJoseDriver - 11/8/2016 2:38:47 PM

-2 Boost

That's what happens wen you don't have an argument to make--resort to comments that add no value. If gas was un-subsidized, it would cost $6-$7 a gallon like in Europe.

SanJoseDriver - 11/8/2016 7:23:41 PM

-3 Boost

Well, the $7,500 Federal credit will expire very soon (2017) since they are almost up to 200,000 cars. All other manufacturers have access to the same credit, there is no advantage here. The State credits are pretty weak in most cases, other manufacturers have same access.

ZEV credits are contributing less and less to Tesla's bottom line each quarter. They now sell them for 50 cents on the dollar since it is cheaper for manufacturers to make a crappy compliance car versus buying the credits these days. I'm assuming they will contribute nothing by the end of 2017.

SanJoseDriver - 11/8/2016 7:29:21 PM

-3 Boost

One other note on the Federal credits, Tesla took advantage of them when selling electric cars was hard and there was no real market for them. Now that Tesla nearly single-handedly created the market and it is easier to sell EVs, other manufacturers will have a $7,500 advantage in pricing. If the credit was based on a timeframe versus a set number of cars it would have been more fair (and better awarded early-adopters and innovative companies), but then again few people though Tesla would actually sell 200,000 cars in the states.