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Tesla Supercharger Network Opens To Non-Tesla Owners, Here's How Much It Could Cost

Stock Markets Aug 19, 2022 16:12
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Electric vehicle leader Tesla Inc. (NASDAQ: TSLA) has its own charging network of Tesla Superchargers worldwide. The company has slowly been opening up access to the charging stations to other electric vehicles outside the U.S. and preparing to launch more options in the U.S. Pricing for the plan was leaked and could offer a glimpse into Tesla’s plans.

What Happened: Tesla will soon offer a membership program to non-Tesla electric vehicle owners for its Supercharger network in the U.S.

The offering from Tesla is expected to launch by the end of 2022, according to Electrek. The move by Tesla to open up its network to non-Tesla owners could help the company secure federal funds to advance its charging station network.

As reported by Tesla influencer Sawyer Merritt on Twitter Inc . (NYSE: NYSE:TWTR), Tesla briefly opened sign-ups for a membership to the Supercharger network for non-Tesla owners.

The pricing offered in the app showed two different models a “pay per use” model and a subscription-based offering. The membership model came with a cost of $0.99 per month in the U.S. and would give subscribers a lower price per kWh at Supercharger locations.

The option was removed from the app later and could have been due to sign-ups going out prematurely or the pricing is wrong.

“My guess is they accidentally hit publish prematurely or they mistakenly put $0.99/month instead of $9.99/month. I guess we’ll see,” Merritt tweeted.

Electrek also expects Tesla to charge more than $0.99 per month for non-Tesla owners.

“My assumption is that Tesla is going to charge a higher price per kWh for non-Tesla EV owners on the pay per use model, and the Supercharger Membership is going to give them the same price as Tesla owners, who won’t have to pay the membership,” Electrek wrote. “I would estimate the membership will be between $5 and $10 per month.”

Related Link: Dip In A Swimming Pool While Your EV Charges: How Tesla Could Be Changing The Waiting Game

Why It’s Important: Opening up its Superchargers to non-Tesla owners could create more congestion at charging station locations and upset existing owners.

Offering a subscription membership and a lower price point could undercut the competition and help bring more people into the Tesla ecosystem, which could potentially lead to additional revenue and some potential future Tesla vehicle customers.

Merritt noted that Electrify America, which is majority owned by Tesla's rival Volkswagen (ETR:VOWG_p) Group (OTC: VWAGY), offers a $4 per month subscription plan.

The $0.99 pricing point could have been an error or could be Tesla’s attempt to take more market share from rivals in the charging space.

The big question would be how much pushback it would get from current Tesla owners. Having access to Tesla Superchargers remains a perk and having increased congestion might alienate some fans.

The growth of electric vehicle charging stations is expected to help increase the market share for electric vehicles in the U.S.

Electrify America, which was valued at $2.45 billion in June, has over 750 charging stations and plans to more than double to 1,800 locations by 2026.

General Motors (NYSE: NYSE:GM) partnered with EV charging company EVgo Inc (NASDAQ: EVGO) on plans for a coast-to-coast national DC fast charging network. Pilot Company, owner of the Pilot and Flying J brands, partnered with the two companies to bring chargers to its locations.

The plan calls for 2,000 charging stalls to be installed at up to 500 Pilot and Flying J travel center locations. Pilot Company counts Berkshire Hathaway (NYSE:BRKa) Inc (NYSE: BRKA)(NYSE: BRKB) as an investor.

Tesla ended the second quarter with 3,971 Tesla Supercharger stations and 36,165 connectors worldwide, both figures up 34% year-over-year. Over 1,400 of Superchargers are located in the U.S.

The opening of the Supercharger locations to non-Tesla vehicles is a major catalyst for the entire electric vehicle industry and the pricing model will be closely monitored by peers and competitors.

TSLA Price Action: Tesla shares closed at $908.61 on Thursday.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Tesla Supercharger Network Opens To Non-Tesla Owners, Here's How Much It Could Cost
 

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