It seems we learn about new Tesla price cuts a few times a week these days. However, this time, it’s not on the EV maker’s cars, but rather, its proprietary DC fast charging network. Tesla has now cut Supercharging prices in most European markets.
As most legacy automakers field the transition from gas to electric cars, budgets are constrained, and they’re losing money. This will change over time, but the initial investments are substantial.
Tesla spent most of its existence on the verge of bankruptcy, but now it’s in a position of advantage over most rivals, as its margins are impressive, it’s generating profits, it has lots of wiggle room as far as cash flow is concerned, and it’s growing exponentially.
In the case of the price cuts to Tesla’s EVs, it was able to do so mostly thanks to its high margins. However, it did see a drop in revenue, and its margins obviously suffered. While the company could choose to raise or lower charging prices freely regardless of the impact of other factors, that’s not the case here.
Energy prices in Europe are finally leveling off after much turmoil. Tesla CEO Elon Musk noted over the past few years that the current global economic situation was such that the company had to plan for the worst. It raised prices and made forecasts on the safe side to ensure that it didn’t end up in a dire situation.
Now that the pandemic has officially come to an end, supply chain issues are fading away, and the price of energy appears to be somewhat stable, companies can begin to transition back to the way things were before all the turmoil. The war in Ukraine also had a notable impact, and while the conflict hasn’t been resolved, it’s having much less of an impact than it was in the past year.
With energy prices high in the recent past, fast-charging an EV at a public station was getting pricey. When people buy an electric car, they’re told they’ll save money on fuel costs, and that’s true. However, if they were doing most of their charging at a Tesla Supercharger, or any public DC fast charging station, they may not have been so happy about the cost, especially over the last year or so in Europe.
With all of that said, according to Electrek, Tesla has reduced Supercharger prices in most areas of Europe by 10 to 20%. Meanwhile, some markets are getting a 25% price cut, such as Spain.
It’s also important to note that this doesn’t just impact Tesla owners. Many Supercharger stations in Europe are already open to all non-Tesla EVs, so those owners will be reaping the benefits as well.