Tesla Hikes Charging Rates at its Supercharger Stations

October 27th, 2020

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While it’s meant to be a frontrunner for the rush to electric vehicle adoption, Tesla has made a decision that has raised the eyebrows of industry onlookers, increasing the cost of its charging rates at Supercharger sites.

The move is understood to have been implemented silently over the last few weeks, despite the absence of any official confirmation from the auto-maker. The increase in price is equivalent to a near 25% jump, with the charge per kW increasing from $0.42 per kW to $0.52 per kW.

How will owners be impacted?

Australian Tesla owners have had little say in the matter, with no heads up given before the price increase. Of course, it would likely be out of owners hands even if they were advised, since the company’s 35 Supercharger sites across the nation have been an integral part of the broader infrastructure network being rolled out to support electric vehicle uptake. That network is set to expand by a further 7 soon enough, with additional sites currently being built.

To better understand the cost impact, one estimate provided by Caradvice focused on the Model 3 Long Range. Their estimates suggested that charging the Model 3 Long Range from an empty battery to a full battery would now cost approximately $43.30, a notable increase from the former price of around $35. That might still be some part cheaper than most if not all ICE vehicles, however, let’s not forget that some technology companies – which Tesla certainly is as much as an auto-maker – are price makers.

We certainly hope the manufacturer doesn’t plan to push through any further price hikes in the near-term, because we might start to see questions being asked as to the value motorists are getting. It’s one thing for the latest electric vehicles to be equipped with long range capacity, however, having to paying more for the ‘luxury’ to charge them at Tesla’s sites may be a contentious move, even if the car company has recently taken an axe to the retail price of its cars.

Nonetheless, as far as driver uptake goes, shifting numbers around to pay less up-front and then pay more while in use could gain traction – provided motorists are actually aware of what they’re signing up for. That’s the missing thing here, however, greater transparency. And Tesla will need to remember they might enjoy an early-mover advantage right now, but will it last if you alienate your customers through non-communicated price hikes?