Tesla is making various improvements to its third-gen Wall Connector
@ChrisTesla/Twitter
Tesla operates two charging networks; the Supercharger and the Destination Charger. The Supercharger network consists of direct current, fast-charging stations for long-distance driving.
The Destination Charger network consists of slower-speed chargers, specifically the Tesla Wall Connector, installed at restaurants and hotels for Tesla owners to charge at their destination.
Destination Charging has typically been free up until now. Tesla announced that they are enabling paid charging at Destination Chargers. In order to set pricing at a Destination Charger location, restaurants and hotels will need at least six Tesla Wall Connectors.
In 2020, Tesla upgraded Destination Chargers with third-generation Wall Connectors, and the EV automaker told property managers that it would enable paid charging with this new generation charger.
Tesla’s Destination Charging locations have usually been complimentary. In most cases, the only requirement was that the Tesla owner was also a customer of the business.
The chargers would help bring more customers to the business, who would cover the cost of electricity from the Destination Chargers.
A great example of Destination Chargers that increase business is hotels. A Tesla owner may be more likely to choose a hotel with Destination Chargers if it means they could easily charge when needed while on vacation.
With the new 3rd generation Wi-Fi-connected Wall Connector, Tesla is enabling businesses to set their own price for charging. However, a business must have at least six Wall Connectors to activate the feature:
Tesla Commercial Services can be enabled on Gen3 Tesla Wall Connectors that are connected to either Wi-Fi or Cellular and have a signed Services Agreement with Tesla. A minimum of six units are required to be installed to be considered forthis service.
This excludes many Destination Chargers since most locations only have two to four Tesla Wall Connectors.
This upgrade will also encourage some property managers to add more chargers since they can charge customers for the service and cover their electricity costs.
Tesla Owners
Tesla Wall Connectors can add about 44 miles of range per hour of charging. In some circumstances, this is a better solution than a Supercharger, which has idling fees after your vehicle is done charging.
Property Managers
Now that property managers can charge for the service, they can cover the cost of deploying the chargers and the cost of electricity while also attracting Tesla owners to their businesses or apartment complex.
Apartment Complexes
If you live in an apartment complex and haven't bought an EV because of limited access to charging, this could be a turning point.
Up until now, many apartment complex managers have been hesitant to add EV chargers due to the added cost. However, now they'll be able to pass on any costs to their residents, adding value to their apartment complex without accruing any charges.
Destination Chargers can be used by Teslas and any other EV with an adapter.
It'll be interesting to see whether Tesla opens up this feature further by removing the six Destination Charger requirement. That would allow almost anyone to charge for the use of their Wall Connector.
Tesla will soon retrofit some of their Superchargers with a CCS plug, allowing non-Tesla vehicles to charge without the use of an adapter. It's possible that the same feature may also arrive for the Wall Connector in the future.
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In this article, we’ll cover Tesla’s updates on Optimus, batteries, and Tesla Energy.
Optimus
Tesla has been working away on their humanoid robot and continues to make progress in software and hardware.
First, Tesla is preparing the Fremont factory for the Optimus pilot production line, which is scheduled for completion later this year. Once it is, wider deployments of Optimus for internal use within Tesla’s facilities are expected as well. Tesla aims to have several thousand Optimus units working in its North American factories by the end of the year once the pilot production line is operational.
Tesla’s goals for production remain extremely lofty - 1 million units per year by 2030. However, they could face some challenges when ramping production.
Key components like the shoulder actuators use specialized permanent and rare-earth magnets, which are currently sourced from China. Due to recent Chinese restrictions on the overseas sale of these magnets, Tesla is seeking an exemption or alternative suppliers. They have not yet looked into modifying the shoulder actuator but will likely do so if they cannot obtain the necessary materials.
Batteries
Batteries are another item that Tesla’s teams have been working on behind the scenes for years now. The second generation of the 4680 - the Cybercell - has been IRA-compliant for some time now. This means that the Cybertruck is eligible for the US Federal EV rebate.
Tesla also achieved the lowest cost-per-kWh of any of its cells with the 4680 battery - and it is potentially one of the cheapest cells being manufactured by any vehicle battery manufacturer at this point. With dry-cathode still being worked on, Tesla may be able to squeeze more optimizations and cost efficiencies from the 4680 cells.
Additionally, Tesla is progressing with its plans for lithium refining and cathode production in the US, both of which are scheduled to commence in 2025. While the company says they’re no longer supply-constrained for non-LFP vehicle batteries, on-shoring production and sourcing critical minerals from nations outside of China will be key.
LFP batteries continue to be supply-constrained, namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla can’t obtain enough and is considering potentially building an LFP production facility in North America.
Energy
Tesla’s energy division is still experiencing some of the highest growth of any of its divisions. Year over year, Tesla saw a 154% increase in energy storage deployments, including both Megapack and Powerwall - for a total of 10.4 GWh deployed in just Q1 2025. While deliveries in energy storage remain volatile due to the nature of Megapack installations, Tesla expects growth to continue rapidly in this segment.
Tesla also deployed 1GWh of Powerwall 3 residential storage this quarter, marking its strongest quarter. Powerwall 3 has received positive feedback from customers, many of whom appreciate its new capabilities with its built-in inverter for solar.
Megapack is continuing to see demand increases, currently highlighted by utility-scale Megapack systems, as well as data centers requiring stable power delivery. Megafactory Shanghai is also online now and producing Megapacks - with an annual production capacity of 20GWh today and up to 40GWh in the future. The site has also produced over 100 Megapacks this quarter, which are all awaiting delivery.
There was a lot of interesting news from Tesla’s Q1 2025 Earnings Call, covering everything from FSD and Robotaxi - to the less glamorous but equally important Megapack and Powerwall.
Tesla is heavily leaning into artificial intelligence, and its insurance offering is just another example of how it’s improving its product or lowering costs by leveraging AI.
Tesla recently started offering an insurance discount in select states when drivers use FSD for at least 50% of their drives and now it’s introducing an AI to help handle customer claims.
Tesla has developed an in-house voiced AI agent that can assist customers in handling simple support requests for Tesla Insurance.
For customers calling in from those states, the new AI agent provides a unique way to address the most common support calls. And it’s not just answering common questions but actually making requested changes to the owner’s account.
Policy Changes
The first key item is that it automates policy changes. Simple policy updates, including adjusting your deductible or coverage limits, are now done via AI. For policyholders who are simply looking to make quick changes and don’t have any questions, this makes the process a lot quicker by not having to wait for a representative. Tesla isn’t eliminating representatives, but this could reduce the number of representatives required or reduce wait times.
Continue Where You Left Off
The second item here, highlighted by Raj Jegannathan from Tesla’s internal IT team, is that Tesla’s AI agent is able to offer summaries of the user’s last interaction with Tesla Insurance. It will summarize your last interaction and provide assistance on that particular topic if you need to continue it. That means that you don’t have to wait for a human to review your file - the AI will kick off right where you left off.
Tesla appears to be focused on improving efficiency and making support more accessible. While actual items like claims are left up to humans due to their inherently complex nature, this helps free up employees to handle more complex items. While there’s no doubt Tesla will continue to develop this AI like they do everything else, we may soon see it take on even more tasks.
More AI
This isn’t the first AI agent that Tesla has demoed - there is now a chat-based AI sales agent available on the front page of Tesla’s website, which is able to answer common questions on Tesla vehicles.
Tesla has also been improving their AI support tool available in the Tesla App is able to provide feedback on common issues and also guide users towards either solving the problem or placing a support request.
Tesla’s strategy here is to influence the cost-heavy areas associated with having humans address simple requests and instead leverage AI, which can offer instant answers and reduce support costs.
Roll Out to More States
While this new AI is currently limited to just 12 states, it is likely to follow Tesla Insurance’s expansion. Insurance seems to have been at a bit of a standstill lately. Tesla continues to improve features such as the improvements to Safety Score V2.2, but we haven’t seen Tesla roll out support to new states since it added Minnesota in November of 2022.
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