After reaching record highs, Tesla starts lowering Supercharger prices

By Gabe Rodriguez Morrison
Tesla lowers Supercharger prices for many
Tesla lowers Supercharger prices for many
Not a Tesla App

Tesla has lowered Supercharging prices in numerous regions as its charging network expands.

Tesla's Supercharger network recently reached 40,000 chargers globally and is slowly becoming a significant part of their business. Tesla's global fast-charging network enables long-distance travel in electric vehicles.

Since EVs require less maintenance and electric vehicles use energy more efficiently, EVs are generally much cheaper to operate. However, the cost of electricity has increased significantly over the last year due to macroeconomic factors.

This price increase has trickled down to Supercharger fees and led to some locations charging as much as $0.50 per kWh (USD). While Supercharger is not meant for everyday charging, the recent price increases have caused traveling with a Tesla to be almost as expensive as roading tripping with your previous gas guzzler.

Tesla announced a major Supercharger price hike in Europe, where electricity costs have been especially high due to an ongoing energy crisis.

Tesla doesn't release global Supercharger pricing, but owners can see local Supercharger prices through the car's navigation system.

Reducing Prices

Slowly, prices are returning to the mean. Recently, Tesla owners across several regions have reported that Tesla has reduced prices at their regional Superchargers.

Tesla previously announced a price hike in California, but it appears now that prices are stabilizing. A Tesla owner in California reported that their local prices had dropped by as much as 5 cents per kWh, which is about a 10 to 15 percent decrease. Other owners in Europe saw similar price drops last week, however, some are now noticing increases as well.

Tesla appears to be changing their philosophy on Superchargers. Tesla used to consider Superchargers a necessity to be able to sell their vehicles, but now with 40,000 Superchargers worldwide, Tesla appears to be transitioning them into a profit center. That's not necessarily a bad thing. It means we'll likely continue to see the growth of Superchargers around the globe, allowing Superchargers to remain the dominant charging network.

Charging stations will always be influenced by utility rates but this is a sign that Tesla's charging business is becoming more financially sustainable.

Time of Day Pricing

In order to combat congestion, Tesla has started implementing time-of-day pricing at many Supercharger locations. In Tesla's recent 2022.36 update, Tesla will now display the time-of-day pricing at a given Supercharger location.

The volume of electric vehicles on the road has increased drastically in recent years and necessitates massive charging infrastructure. Tesla is adapting to serve these needs by slowly opening the Supercharger network up to non-Tesla EVs.

Elon to Switch to the Cybertruck; Volume Production in 2024

By Kevin Armstrong
Cybertruck mass production to start in 2024
Cybertruck mass production to start in 2024
Kim Java

Tesla's fourth quarter and 2022 earnings call with investors was mostly good news unless you were planning to drive a Cybertruck soon. While company executives eagerly jumped on every question asked by investors, there was a noticeable pause when a point-blank question was asked about Cybertruck's mid-year production date.

Elon Musk responded "um, we do expect production to start, I don't know, maybe sometime this summer. But I always like to try to downplay the start of production because the start of production is always very slow. It increases exponentially, but it's always very slow at first. So I wouldn't put too much thought in start of production."

Volume Production Next Year

If the millions of people with Cybertruck reservations were in attendance, you might have felt the air leave the room. The previous belief was mass production would start by the end of 2023. There may be some stainless-steel beauties on the road by then, but only a few. "It's kind of when does volume production actually happen, and that's next year," said Musk.

Perhaps sensing some disappointed buyers, Lars Moravy, Tesla's Vice President of Vehicle Engineering added, "(I'd) like just to emphasize on that, we've started installation of all the production equipment here in Giga Texas, castings, general assembly, body shops. We built all our beta vehicles, some more coming still in the next month, but as you said, the ramp will really come 2024."

The Cybertruck Will be Elon's Next Car

Cybertruck was originally announced in 2019 at the memorable event that included the unbreakable armor glass smashing. Musk was wearing the smashed glass Cybertruck t-shirt while taking questions from investors. While the wait continues, he is adamant that it will be worth it, "So it's an incredible product. I can't wait to drive it personally. It will be the car that I drive every day… it's just one of those products that only comes along once in a while, and it's really special."

The original release deadline was set for 2021. However, the production date has been delayed due to unforeseen circumstances, like a global pandemic. Nevertheless, it is a positive sign that beta vehicles have been produced. Images of what appears to be a Cybertruck were leaked a few months ago.

Recently, chief designer Franz von Holzhausen did confirm that the Cybertruck was ready for production, but it's a work in progress. Every Tesla beta product gets thoroughly examined and meticulously reviewed before the next step. But at least it's a step in the right direction.

A Look at Tesla's 2022 Numbers and Record Quarter

By Gabe Rodriguez Morrison
Tesla set new records in production and deliveries while beating analyst expectations.
Tesla set new records in production and deliveries while beating analyst expectations.
Statista

Tesla published their Q4 2022 and full-year financial results, setting new records in production and deliveries while beating analyst expectations. Tesla’s annual profit rose to $12.6 billion in 2022, from $5.5 billion in 2021. Annual revenue rose to $81.5 billion, from $53.8 billion the year prior. Tesla reported fourth-quarter revenue of $24.32 billion beating analysts' $24.07 billion estimate. The automaker also reported earnings per share of $1.19 beating analysts' $1.12 estimate.

Tesla’s stock rose more than 5% in after-hours trading following the earnings release and surged more than 10% the next day.

Tesla's Q4 2022 revenue set a new record for the company, up 59% from a year earlier. In addition to automotive revenue of $21.3 billion, Tesla recognized $324 million of deferred revenue from the company’s driver assistance systems.

FSD Beta Numbers

Tesla reported that 90 million miles have now been driven with FSD Beta, up from 58 million miles in the previous quarter. The company also confirmed that they have about 400,000 FSD Beta users in North America, a sizeable increase since the last report. With such a steep increase in miles driven and FSD Beta becoming widely available in North America, Tesla is making significant progress with its autonomous driving software.

In late 2022 and into this year, Tesla began cutting prices on its cars globally. Elon spoke about how recent price cuts have fueled a surge in demand for Tesla: “Thus far in January we’ve seen the strongest orders year-to-date than ever in our history. We’re currently seeing orders of almost twice the rate of production.” He added: “These price changes really make a difference for the average consumer.” Tesla acknowledges that average sales prices have to decrease over time because affordability is part of Tesla's mission to grow into a company that sells multiple millions of cars annually.

Price cuts will impact profitability, but margins should remain healthy, Tesla CFO Zach Kirkhorn affirmed. Tesla has wider operating margins than the industry average, which allows them to make such price cuts.

Elon issued an uncertain forecast for 2023, saying Tesla planned on 1.8 million vehicles for the year without specifying whether that was a target for production or deliveries. If the company were to deliver 1.8 million vehicles in 2023, that would result in 37% annual growth.

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View the release notes for the upcoming version 2023.2.0.5.

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Take a look at features that Elon Musk has said will be coming soon.

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