Tesla changes free electricity approach

Tesla announced it will soon change its offering with unlimited access to free fast charging stations starting in 2017. This is a strategic change to support the launch of its less expensive Model 3 electric car that is now being positioned for mass production.  Tesla originally invested in the Super Charge Network to help bring fast charging stations to the public through such distribution channels as large brand grocery stores such as Whole Foods, to Malls and other locations where the consumer spends a significant amount of time. While there if a strategic shift to take the spend away from the Super Charge Network and shift the cost over to marketing and advertising the new Model 3 to bring electric  car adoption rates to all time highs.

Today owners of vehicles can use unlimited amounts of electric at the super charge network, but beginning 2017 new customers  can only charge up to 400 kilowatts which is equivalent to 1000 miles. After that there will be a charge for electricity at these super charge stations.  Today most buyers will have an electric outlet at home and rely on this source to charge their vehicle, and the main purpose of the charging stations was the include the electric car owner to drive long distances without worry of running out of electricity.

The super charge network is worth $194 million and comprises of 734 charging stations world -wide.  There is an need to increase the Super Charge Network, in anticipation of the Model 3 deployment. There are already over 300,000 pre-orders for the vehicle and if there is not enough Super Charge locations there could be a dissatisfaction on the end of the consumer and the vehicle launch could become a disaster if the right resources to support the demand are not in place.

 

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