Tesla is making various improvements to its third-gen Wall Connector
@ChrisTesla/Twitter
Tesla operates two charging networks; the Supercharger and the Destination Charger. The Supercharger network consists of direct current, fast-charging stations for long-distance driving.
The Destination Charger network consists of slower-speed chargers, specifically the Tesla Wall Connector, installed at restaurants and hotels for Tesla owners to charge at their destination.
Destination Charging has typically been free up until now. Tesla announced that they are enabling paid charging at Destination Chargers. In order to set pricing at a Destination Charger location, restaurants and hotels will need at least six Tesla Wall Connectors.
In 2020, Tesla upgraded Destination Chargers with third-generation Wall Connectors, and the EV automaker told property managers that it would enable paid charging with this new generation charger.
Tesla’s Destination Charging locations have usually been complimentary. In most cases, the only requirement was that the Tesla owner was also a customer of the business.
The chargers would help bring more customers to the business, who would cover the cost of electricity from the Destination Chargers.
A great example of Destination Chargers that increase business is hotels. A Tesla owner may be more likely to choose a hotel with Destination Chargers if it means they could easily charge when needed while on vacation.
With the new 3rd generation Wi-Fi-connected Wall Connector, Tesla is enabling businesses to set their own price for charging. However, a business must have at least six Wall Connectors to activate the feature:
Tesla Commercial Services can be enabled on Gen3 Tesla Wall Connectors that are connected to either Wi-Fi or Cellular and have a signed Services Agreement with Tesla. A minimum of six units are required to be installed to be considered forthis service.
This excludes many Destination Chargers since most locations only have two to four Tesla Wall Connectors.
This upgrade will also encourage some property managers to add more chargers since they can charge customers for the service and cover their electricity costs.
Tesla Owners
Tesla Wall Connectors can add about 44 miles of range per hour of charging. In some circumstances, this is a better solution than a Supercharger, which has idling fees after your vehicle is done charging.
Property Managers
Now that property managers can charge for the service, they can cover the cost of deploying the chargers and the cost of electricity while also attracting Tesla owners to their businesses or apartment complex.
Apartment Complexes
If you live in an apartment complex and haven't bought an EV because of limited access to charging, this could be a turning point.
Up until now, many apartment complex managers have been hesitant to add EV chargers due to the added cost. However, now they'll be able to pass on any costs to their residents, adding value to their apartment complex without accruing any charges.
Destination Chargers can be used by Teslas and any other EV with an adapter.
It'll be interesting to see whether Tesla opens up this feature further by removing the six Destination Charger requirement. That would allow almost anyone to charge for the use of their Wall Connector.
Tesla will soon retrofit some of their Superchargers with a CCS plug, allowing non-Tesla vehicles to charge without the use of an adapter. It's possible that the same feature may also arrive for the Wall Connector in the future.
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There has been extensive reporting on what the long-anticipated affordable EV option would become, and we’ve seen numerous news stories mentioning that it was delayed or even arriving on time. The executive team revealed the near-term and long-term plans for Tesla’s upcoming vehicles, and there’s definitely good news to share here.
Updated Timeline
The most important piece of news is that despite all the talk of delays from supposed inside sources, Tesla has confirmed that the plan for its more affordable model remains on schedule for production to begin in the first half of 2025. Tesla’s executive team narrowed that timeline down further - and said that they expect production to kick off as soon as June and that the new model will be in the market shortly thereafter.
While the production timeline itself is on track, Tesla did note that the subsequent ramping process will likely be slower than initially hoped, citing global tariff and financial impacts as challenges to overcome to prepare its production lines.
Hybrid Production Approach
Tesla has once again confirmed that this will not be their next-generation vehicle, built using new production methods. Instead, they outlined a relatively more pragmatic approach for this new model.
Tesla will utilize aspects of both the next-generation platform as well as some parts of its current platforms (namely the Model 3 and Model Y). This means that Tesla will produce this new vehicle on the same manufacturing lines as the Model 3 and Model Y.
This strategy allows Tesla to bring the vehicle to the market more quickly, while also managing capital expenditures more efficiently by using existing infrastructure. However, Tesla’s executive team also noted that this approach, while faster, will result in fewer cost reductions than what might have been achieved with an entirely new platform and dedicated manufacturing process.
Vehicle Design
Using these existing production lines means that Tesla’s new vehicle will likely share some considerable similarities with either the existing Model 3 or Model Y. Rather than being a radically different and smaller vehicle, this new model will resemble the overall form factor and shape of Tesla’s current core offerings, while being optimized for a lower cost.
This doesn’t mean that Tesla is forgetting the overall goal here. Their ultimate goal is to reduce the initial cost of ownership and lower monthly payments for customers while maintaining a standard of excellence and safety.
Not Unboxed
Both at this Earnings Call and previous ones, Tesla has indicated that this new vehicle will not be using the innovative unboxed assembly method, at least for the time being. That relatively unique method will be developed and implemented specifically for the purpose-built Cybercab and for future vehicles on the next-generation platform.
We’re just a few days away from May, so it won’t be long before we see more about this upcoming vehicle. Stay tuned.
In a follow-up move to the current US administration’s goals to introduce a federal framework for autonomous vehicles, the US Department of Transportation (USDOT) is loosening autonomy restrictions following an announcement from Secretary Sean Duffy on X. This new initiative helps streamline complex regulatory processes and foster home-grown innovation.
From the Wright Brothers to the first astronauts on the moon, our nation has always been at the forefront of transportation technology.
That’s why today we're unveiling a new Automated Vehicle Framework from @USDOT’s Innovation Agenda ⬇️ ⬇️ pic.twitter.com/W3kbMUwQSn
As part of the broader upcoming USDOT Innovation Agenda, the newly unveiled AV Framework is designed to promote American innovation and strengthen domestic engineering while maintaining existing safety standards. The framework centers around three key principles:
Prioritize Safety
Unleash Innovation
Enable Commercial Deployment
To kickstart this AV framework, USDOT announced two initial steps focused on streamlining processes and expanding opportunities.
Crash Reporting Requirements
Under the first principle to Prioritize Safety, the National Highway Traffic and Safety Administration (NHTSA) will maintain its Standing General Order requiring crash reporting on Advanced and Automated Driver Assistance Systems (ADAS and ADS).
However, the reporting process will be streamlined following feedback from AV innovators, likely including Tesla. The goal here is to focus on collecting critical safety information while removing unnecessary or duplicative items from the reporting process, thereby reducing the burden without compromising safety.
Cutting Red Tape
Directly tied to the second principle of Unleash Innovation, the framework also seeks to slash red tape. The first step here is the expansion of the Automated Vehicle Exemption Program, or AVEP. This program allows manufacturers to petition for temporary exemptions from certain federal motor vehicle safety standards (FMVSS) for testing or deployment purposes.
Previously, the standard excluded domestically produced vehicles. Now, domestically produced AVs will not need to meet FMVSS, which will broaden the scope for manufacturers to test more innovative and unique designs and technologies.
Single National Standard for AVs
Finally, tied to the third principle of Enable Commerical Development, USDOT intends to move the United States closer to a single national standard for autonomous vehicles. This aims to prevent a confusing and inefficient patchwork of state-level or city-level laws and regulations, which can create hurdles for companies attempting to innovate, deploy, and scale their technology.
A unified standard across the United States also means that Canada and Mexico will likely be able to follow, as they share homologization standards across North America, including for vehicle crash safety and some autonomy regulations.
What This Means for Tesla
These framework changes will likely have a substantial impact on Tesla. The move towards a national standard is potentially the most impactful change, as Tesla identified regulatory hurdles as one of the most significant challenges it will face with the deployment of both Unsupervised FSD and its Robotaxi network.
The reduction of FMVSS requirements and streamlined reporting will likely play a role in the future as well. The FMVSS requirements are probably already being worked on, if not already met, by the Cybercab and other vehicles in Tesla’s lineup.
Meanwhile, the streamlined reporting will be helpful once Tesla officially launches its Robotaxi network in June.
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