Tesla Supercharger Update: Credits, Fees Rolling Out Next Year

Tesla introduced a new car-charging initiative that it says will work for both consumers and the company's Supercharger network. The company announced Monday it was rolling out an update to its Supercharger program which will help it reinvest in the existing Supercharger network, accelerate the growth of the technology and enhance the consumer experience.

Consumers who order a Tesla after Jan. 1, 2017 will get 400 kWh of free supercharging credits every year. Once the free units, expected to last around 1000 miles, run out, customers will have to pay a fee to Supercharge their vehicles.

The new policy will not affect vehicles ordered before Jan. 1, 2017, so long as delivery is taken before April 1, 2017.

Tesla said in the announcement the Supercharging fees will be an incremental charge and cost less than gas. All Tesla models will come with the requisite hardware for Supercharging. More details about the program will be released soon and pricing would vary over depending on the regional costs of electricity, although the company said the “Supercharger Network will never be a profit center.”

Tesla is trying to expand its Supercharger network ahead of the launch of its first affordable sedan — Model 3, for which it anticipates high demand. The Model 3 is priced at $35,000 and preorders are said to be worth upward of $10 billion.

CEO Elon Musk has a goal of producing 500,000 cars by 2018 and 1 million cars by 2020. For 2016, Tesla's goal is to produce 80000-90000 vehicles, up from the 50580 cars produced in 2015.