History:
With the introduction of the 2nd generation Tesla vehicles (Model S & X) customers needed a way to refuel daily and travel long distances, reliably, effortlessly and with convenience. Public AC level 2 chargers were rare, slow, inconvenient, unreliable and arguably expensive. While public stations have improved, they still fall short of the sustainable transport mission. Tesla's solution to that problem was the Home charger, Supercharger and destination charger program. Customers initially paid ~$2,000 USD for supercharger access and $1,200 USD (plus installation labor) for a 20kw High power wall charger. For the vast majority of Gen 2 customers this problem was now solved. With mass production, costs began to drop. Home chargers are now $450 USD (plus labor) and Supercharging dropped enough to include it in the base price.
New Problem:
Enter the 3rd generation vehicles (Model 3 & Y)
How does Tesla continue to do all of the above AND make it appear to be "FREE" to the customer? The problem has evolved, and so we need to adapt the solution to fit the new problem.
Solution:
(note: While I know this concept will work in the USA, it may need to be adapted for countries with differing regulations and financials.)
Q. How does Tesla make money here if everything is given away free?
A. Peak and trough cost differential is big bucks on the grid. Store energy when it's cheap, and sell when it's expensive. Tesla energy already sells batteries to customers who do this. With Tesla's ability to vertically integrate the solar generation, the battery storage, and the vehicle charging logistics, Tesla stands to profit. Tesla energy would develop and maintain grid management software. Today's grid software is laughable, so much waste. Tesla's top engineers would be able to control both supply (battery storage at charging stations, businesses and homes) and demand (car charging and battery charging) Anyone who doesn't know the multi-billion US dollar value in this sector, should watch JB's youtube videos explaining the electrical grid economics.
Q. While this would handle the sustainable portion, why isn't Tesla doing this already?
A. It's simple, they don't have the money up front, so lets have the market give it to them.
1. Solar city already sells bonds, just expand this program.
2. And, create a Tesla motors Preferred Stock series A, with no voting rights. Create a fixed price buyback to keep the value stable, with quarterly dividend payments. Those dividend payments would be a set fraction of the profit that Tesla makes from buying and selling energy (and solar credits to a lesser extent). There is a huge amount of capital available from the 401k/retirement brokerages that would invest in a stable value, stable return preferred stock. The same huge bucket of long term investor money that is unwilling to invest in an unstable stock such as Tesla common shares. Preferred shares are generally insulated from market swings.
I can obviously expand on this concept, the details. I tried to explain how Tesla has the unique opportunity to profit from something that's never been practical before the Solar City merger and Tesla technology. IF Tesla does all of this, they can offer supercharging for free to all new customers, and profit at the same time.
With the introduction of the 2nd generation Tesla vehicles (Model S & X) customers needed a way to refuel daily and travel long distances, reliably, effortlessly and with convenience. Public AC level 2 chargers were rare, slow, inconvenient, unreliable and arguably expensive. While public stations have improved, they still fall short of the sustainable transport mission. Tesla's solution to that problem was the Home charger, Supercharger and destination charger program. Customers initially paid ~$2,000 USD for supercharger access and $1,200 USD (plus installation labor) for a 20kw High power wall charger. For the vast majority of Gen 2 customers this problem was now solved. With mass production, costs began to drop. Home chargers are now $450 USD (plus labor) and Supercharging dropped enough to include it in the base price.
New Problem:
Enter the 3rd generation vehicles (Model 3 & Y)
How does Tesla continue to do all of the above AND make it appear to be "FREE" to the customer? The problem has evolved, and so we need to adapt the solution to fit the new problem.
Solution:
(note: While I know this concept will work in the USA, it may need to be adapted for countries with differing regulations and financials.)
- Tesla Energy must become an Energy Choice provider in significant marketshare.
A. Supercharging remains included with 2nd gen models, and a rebate is offered for choosing Tesla Energy choice.
B. Supercharging is an option for 3rd gen models, a manufacturer rebate will be offered to offset half the supercharging option cost if they sign a term contract with Tesla Energy choice. - Solar City
A. Replace the existing Tesla loyalty incentive, with a HPWC installed by solar city electricians. AND the other half of the supercharging option cost for gen 3 customers.
B. Customers total electric bill will automatically be lower than just Tesla energy choice alone, due to reduced grid distribution costs.
C. Install home energy Power Walls for free in strategic homes that are net meter grid tied. Offering a slightly cheaper Tesla energy choice kWh rate to the customer in exchange. - Tesla supercharger stations will be upgraded with
A. Solar canopy where it makes sense.
B. Tesla power packs.
.1. small power packs in areas that don't allow back feeding, just enough to offset the peak demand charge during supercharging.
.2. bigger packs used in areas with net metering, allowing the station to feed the grid when cost effective. (sign up as a peaking plant electrical generator facility)
Q. How does Tesla make money here if everything is given away free?
A. Peak and trough cost differential is big bucks on the grid. Store energy when it's cheap, and sell when it's expensive. Tesla energy already sells batteries to customers who do this. With Tesla's ability to vertically integrate the solar generation, the battery storage, and the vehicle charging logistics, Tesla stands to profit. Tesla energy would develop and maintain grid management software. Today's grid software is laughable, so much waste. Tesla's top engineers would be able to control both supply (battery storage at charging stations, businesses and homes) and demand (car charging and battery charging) Anyone who doesn't know the multi-billion US dollar value in this sector, should watch JB's youtube videos explaining the electrical grid economics.
Q. While this would handle the sustainable portion, why isn't Tesla doing this already?
A. It's simple, they don't have the money up front, so lets have the market give it to them.
1. Solar city already sells bonds, just expand this program.
2. And, create a Tesla motors Preferred Stock series A, with no voting rights. Create a fixed price buyback to keep the value stable, with quarterly dividend payments. Those dividend payments would be a set fraction of the profit that Tesla makes from buying and selling energy (and solar credits to a lesser extent). There is a huge amount of capital available from the 401k/retirement brokerages that would invest in a stable value, stable return preferred stock. The same huge bucket of long term investor money that is unwilling to invest in an unstable stock such as Tesla common shares. Preferred shares are generally insulated from market swings.
I can obviously expand on this concept, the details. I tried to explain how Tesla has the unique opportunity to profit from something that's never been practical before the Solar City merger and Tesla technology. IF Tesla does all of this, they can offer supercharging for free to all new customers, and profit at the same time.
