Summary
- Tesla is offering free Supercharging on new Model X purchases and leases
- The starting price of the Model X has increased by $5,000
- The Model X is now ineligible for the $7,500 federal tax credit
- Free Supercharging is tied to the owner’s Tesla account and cannot be transferred
- To offset the price increase, it would take 14 to 35 years depending on the energy usage and charging methods
Article
Tesla Offers Free Supercharging on New Model X Purchases and Leases
Tesla has reintroduced a compelling offer for potential buyers of the Model X electric SUV – free lifetime Supercharging. This incentive, which had been on hiatus for several years, is now back for those purchasing or leasing a new Model X. However, while this may seem like a great deal at first, there are some complexities to consider. The free Supercharging is tied to the owner’s Tesla account and cannot be transferred to another vehicle or person, even if the car is sold. This differs from previous offers where free Supercharging stayed with the vehicle regardless of ownership. It is important to note that Supercharging allows users to access Tesla’s vast network of DC fast chargers, with over 27,000 stalls in North America.
Increased Price and Federal Tax Credit Ineligibility
Although the free Supercharging offer may attract some buyers, there are other considerations to take into account. Tesla recently increased the starting price of the Model X by $5,000, bringing the total to $84,990. This increase makes the Model X ineligible for the $7,500 federal tax credit, as electric SUVs must be priced below $80,000 to qualify for the incentive. For customers who were previously eligible for the federal tax credit, the Model X is now effectively $12,500 more expensive than before. While free Supercharging may seem like a valuable add-on, it may not fully balance out the increased cost for the majority of electric vehicle owners who already have home chargers.
Energy Usage and Cost Analysis
To further understand the impact of the price hike and the value of free Supercharging, it is essential to analyze energy usage and costs. The average American drives approximately 13,473 miles per year, with 83% of this distance likely powered by a home charger. This indicates that only around 2,291 miles would be fueled by Superchargers. Based on EPA estimates on energy efficiency and average Supercharging rates, it can be calculated that driving these 2,291 miles would cost approximately $356 per year.
Offsetting the Price Increase
When considering the $5,000 price hike, it would take around 14 years to offset the cost through Supercharging alone. For the full $12,500 price increase (including the lost federal tax credit), it would take approximately 35 years to break even. In the scenario where the owner exclusively uses Supercharging and forgoes a home charger, the cost of energy would rise to $2,091 annually, taking two and a half years to offset the $5,000 price hike and six years to offset the $12,500 effective price increase. However, this option would require sacrificing the convenience and savings of charging at home, a significant benefit of electric vehicles.
Considerations and Conclusion
Ultimately, the value of free Supercharging as an incentive for purchasing a new Model X must be carefully weighed against the increased cost of the vehicle and the potential loss of the federal tax credit. While the offer may appeal to some buyers, particularly those who rely heavily on Superchargers for energy needs, it may not offset the price hike for the majority of owners who have access to home chargers. Additionally, the potential for Tesla to revoke free Supercharging in case of "excessive charging" introduces uncertainty and may impact the long-term value of the incentive. Buyers should evaluate their driving habits and charging needs to determine if the offer aligns with their preferences and financial considerations.
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