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Supercharging Hidden Charge for 60 kWh S's?

I found some red flags in the press release and Elon's presentation on the Supercharger. The question that is raised is this: Is the Supercharger hardware included in the price of the 60 kWh cars or not?

The press release has a footnote that says, " Supercharging hardware is standard on Model S vehicles equipped with an 85kWh battery and optional on Model S vehicles equipped with a 60 kWh battery." To read it yourself go to the press release and find the footnote about mid-page, just above the "About Model S" subheading. The link is:

http://www.teslamotors.com/about/press/releases/tesla-motors-launches-re...

In his presentation at the event Elon said, "For cars that have supercharger hardware installed, and that will be the case for the 85 kWh pack, and a small incremental charge for 60 kWh pack you'll be able to travel for free..."

Here's the link to the video. The quote starts at about 7'50" into the video:

http://www.youtube.com/watch?v=wgk5-eB9oTY&list=UU5WjFrtBdufl6CZojX3D8dQ...

I just signed my contract for a 60 kWh S yesterday, and I was counting on being able to take long trips that use the Supercharger. I hope that I misheard and misread. My Tesla configuration rep. is looking into the discrepancy, as it didn't make sense to him either.

By the way, I have strong confidence in Tesla and bought my first TSLA stock on today's dip.

Stu B
#P4562

The Options and Pricing page states that supercharger hardware comes standard with the 60 kWh. "Includes all software and on-board hardware."
http://www.teslamotors.com/models/options

(This is new. Only recently it said "TBD" for the 60 kWh.)

@Stu B - Look at your Model S Order Summary and your MVPA. If there was going to be a charge for the Supercharger Hardware, there would be a dollar amount on the charging line item. If you don't have that line item, then you will have to wait for your rep to sort if out.

Awhile back Tesla announced that supercharger hardware would be included with the 60kwh battery (previously listed as an option). The change was then shown in my garage/design section for my car. I assume this has been the case and was surprised to see the subscript in the press release and the comments of Elon Musk. Wish TESLA would definitively clarify.

I think it was simply a matter of Elon misspeaking and forgetting that hey had changed supercharging from an option to standard with 60 Kwh packs. I'm sure Tesla will clear it up, remember even though there may have been hundreds of comments here frantically discussing the superchargers it has only been 18 hours since the announcement and most Tesla employees have been asleep for 8 of those, I'm sure more details and clarification will appear shortly.

I am looking at page 2 of my MVPA signed on Sept 6th, and the "Supercharger Hardware" is listed there with no dollar amount associated with that item. So I'm interpreting that as having supercharging hardware included in my 60 kWh configuration. What's not clear is if Tesla will charge 60 kWh owners to activate this hardware or not?

sidney;
I figger not. This SC push is a marketing project, financially speaking. It makes the S much more salable and attractive for many segments of the market. TM has simplified the calculus, and I can't imagine it would be worth the trouble to nickle-and-dime with activation fees.
My 2¢.

There are nickle-and-dime things all over the Tesla sales process. Why not one more? I can see a one time activation fee but hoping that is not the case.

$250 parcel shelf.... really?

$3,750 for off line navigation (which is all many people want in that package). Navigon USA for my 10" Tablet is $50.

Delivery fee for pickup at the factory.

Many are pretty strongly expressing their opinions about the maintenance package being nothing but an extended purchased warranty for the car and the car really comes with a free one year, or 12000 miles warranty.

I am not upset by the charges I see but just wanted to point out there are already expensive nickle-and-dime items.

I was in the DC showroom today and the manager confirmed to me that Elon misspoke and that there is no extra cost for the 60 kWh car.

"$250 parcel shelf.... really?"

Personally, I'm very happy they made it optional. In all my earlier cars, I have had to take out the stupid shelf and store it somewhere until it was time to sell the car again. I have enought crap stored already.

I know hijacking threads is strongly frowned on here and almost never happens, but... I am also happy the parcel shelf is optional. With a frunk I have no need for it.

The explanation just arrived. Here it is:

You are receiving this email because you have placed an order for Model S and opted for our 60 kWh battery. We are contacting you today to see if Supercharging is an option you would like to enable on your car.

Earlier this week, we announced details surrounding our Supercharger network. Superchargers are designed to give Model S half a charge in about half an hour, making road trips in an electric vehicle a practical reality.

Superchargers are being placed along well-travelled routes across North America and, while we only have six locations today, we plan to have over a hundred locations by 2015.

Today, we are announcing pricing for the option that enables Model S to access the Supercharger network. This option will cost $2,000 on Model S equipped with our 60 kWh battery and includes unlimited, free Supercharging for the lifetime of your Model S. Supercharging is included as standard equipment on cars equipped with our 85 kWh battery.

Supercharger access is made up of three components: hardware, software and the vehicle interface. The cost to enable Supercharging on cars equipped with a 60 kWh battery is $2,000. Hardware represents approximately $1000 of the cost, while software configuration, enabling and testing the interface represents another $1000.

Since you are an early reservation holder and booked your 60 kWh Model S before complete Supercharging information was available, we planned ahead to build your Model S with Supercharger hardware at no additional cost to you. If you would now like to enable access to the Supercharger network, we still need to configure the software, and enable and test the interface. There will be a $1000 charge to complete this work if you would like to enable access to the Supercharger network. After this work is complete, you will then have unlimited free access to the network for the lifetime of your Model S (this even extends to all future owners of the car).

Supercharger hardware and software must be calibrated and tested during installation, so it must be done during production of your car. We cannot add Supercharging to your car after you take delivery.

Given the timing of your car, we need to know in the next 10 days if you would like to have Supercharger access added to your Model S for $1,000. This is half of what those who have not yet configured will pay.

No matter what you decide, your Model S delivery will not be delayed.

By the way, I'm going to sign up for access to Superchargers. While I would have appreciated knowing the full pricing plan ahead of time I think that Tesla has done an admirable job for a start-up. Additionally, the Supercharger network seems an incredible addition to the features of this car and I really want access to it.

Stu B

Same here. I just accepted the "Add Supercharging" option for $1000. Will definitely take advantage of these stations along SF-LA route.

Sidney

You guys are suckers. I am excited to see all the other hidden charges you are willing to sign up for next? I just wrote this to my ownership experieice advocate.

Dear Tesla,

First you screw everyone with $600 windsheild wipers, now $1000 for an included option.

Nick and dime = bye bye

While I would love to see you succeed, you have already crahsed and burned in my eyes.

I'm glad that some people have unlimited cash supplies at their disposal.

I signed my paperwork to what I can afford, and it said that SC hardware is included for 60kWh packs. It made no mention of software.
Come on Tesla.....

I think this is perfectly justifiable, firstly $1000 for free "gas" for life whilst on vacations or other long trips is a massive bargain. Second if they only offered supercharging on 85 Kwh vehicles then they would need ~30% fewer superchargers because they could be more widely spaced, a small surcharge for these vehicles to partially fund the additional SC's that they necessitate seems reasonable to me.

I am a Tesla apologist but this latest event is bothering me. My reservation quote just went up $2000 for an "included" item. If it had said TBD the whole time I woudl have had no problem with it, but this is crazy. I think all current reservation holders should be able to get the 60KW with supercharging for $1000. Even then I might pass because I have no plans to travel out of the city in the car. I have 5 kids and we need the Suburban for road trips, but I was actually very excited about supercharging even though I would hardly ever use it. Now I just have a digusted feeling about Tesla and hope that Tesla is not just charging reservation holders extra fees to offset their cost overruns and delays. Since I'm P9318 I have some time, but I don't plan to keep talking up how great Tesla is to my friends anymore. I hope George B has a better spin on this than he did for the maintenance fee - I want to be as excited about Tesla as I was a month ago.

Huh, the "Options and Pricing" page now lists $2000 for supercharger for the 60kWh version. I think just yesterday said "standard"...

+1 markapeterman. To go from TBD to included to now this.....

Yes, "free gas for life" is great, but how often are you reall going to use these SCs. 2k worth???? Of electricity

What is George Blankenship's email address? We need to flood his mailbox with complaints after he announced/posted supercharger hardware included and now switched the game plan on us. Ultimately not a game changer for me but feel everyone's pain, including mine! Not a good marketing move!!!

This is pure crap. I'm either canceling my reservation or downgrading to the 45kwh model. Makes no sense to pay $2k for supercharging, might as well pay $10k for the bigger battery.

I was expecting to pay $2000 to $5000 for supercharger access on the 60kW battery anyway. They should have just left it TBA. I am going to pay for the upgrade because I was planning on paying it anyway before. I was just please to see it was going to be included. When they said only hardware was included I expected a activation fee.

What bothers me is the change. I am now wondering what else is going to change after I sign paperwork with them. Is the maintenance contract going to change? The ranger will come to me for $100 but for him to actually do any work will be an extra. or how about to test the windshield wipers will cost extra.

It is now obvious there are going to be a lot of extras for this car even after you purchase.... just like any other car dealer. The only difference is the Tesla will get the money instead of the dealer.

"I'm altering the deal. Pray I don't alter it further"

@stuberman, are you serious? Please tell me this is a prank. I have already downgraded from 60 to 40 kW because of the $600 per year maintenance fee. And I am really worried that these hidden prices keep popping up from nowhere.

~ Prash.

Apparently, it is not a prank.

I have to say that anymore hidden costs like this, and I will seriously think about canceling my reservation. Doesn't matter whether the costs are $2000 or $20. The only reason we are getting a Tesla is to see this electric car market succeed.

This is too much. If this is how it goes, the next time they make a movie called "Who killed the electric car", we will know who it.

~ Prash.

prash.saka. If you were changing from the 60 to the 40kW car, this doesn't affect you, since the 40 kW car cannot use the SC stations.

I can feel the pain of those who chose the 60 KW battery, and who watched the Supercharger announcement with great excitement, only to be blindsided by the $2,000 up charge for Supercharger access.

However I note that with the increase from 40 KW battery to 60 KW you get 20 KW and Supercharger access for $12,000 more. To go to 85 KW you get 25 KW additional and Supercharging for only $8,000 more.

Makes the 85 KW a relative bargain.

The issue is the web said for months it was included. Many of us already signed our contracts, and ordered our cars. I view this as a rather serious breach of good faith.

EMAIL RESPONSE FROM GEORGE B (in less than 1 hour):

Hi Mark,

Thanks for the note. It is greatly appreciated.

Let me explain a little further. There is nothing hidden going on here, and the explanation is very straightforward. We had hoped to announce the Supercharger network in July. It was impossible to do so. We had to delay the launch until September. If we had launched in July, the prices for Supercharging would have been:

85 kWh No charge
60 kWh $2000
40 kWh Not available

We needed to start configuring cars for customers with General Production reservations in July (this was not an issue prior to that because all Signature cars have 85 kwh batteries). So we looked ahead and made the decision to put the hardware and software needed to enable Supercharging into all cars to make sure if anyone who opted for a 60 kWh battery wanted to enable Supercharging they would be able to. We put on the web in the options & pricing page and the Design Studio that the hardware and software necessary to Supercharge was included on 60 and 85 kWh cars. We did that specifically so anyone who selected a 60 kWh battery back in July, August, or up until now in September would have the exact same option as someone who had not yet configured their car. They would have the option today to choose Supercharging, decline Supercharging, or even get a different battery...the only difference, we would keep their original delivery timing, no matter what choice they made.

Then we decided to do something extra for these customers who had already configured, and we decided last night at about 11:30pm eastern time, that we would go ahead and pay for half of the cost. So, we are not only making it possible to make the same decision now as they would have been able to make back in July, we are making it even better...you can enable Supercharging for half price and still keep your original delivery date.

This is not a negative. We have taken those who would have had to pay $2,000 up until now and made it possible for them to enable Supercharging if they want to for half the price. They don't have to enable Supercharging if they don't want to. But if they do want to, they can do it for half price.

I hope you see this as a reasonable response. The announcement today is actually giving a large number of customers who have already configured their car the option to enable Supercharging on their car for half the price it would have otherwise cost...if they want to. And it's fine if they don't want to. If they want to they are better off. If they don't want to they are in the exact same position as they would have been otherwise.

Again, thanks for your note. I appreciate every customer who gives me the chance to explain what is really going on before overreacting.

Have a great weekend! George

On Sep 28, 2012, at 9:42 PM, "Mark Peterman" wrote:

George-

I am a big fan of Tesla and have been talking to everyone I meet about the model S. I took the maintenance costs in stride even though it seemed excessive in light of the repeated claims of low cost of maintenance for EV. Now with the switch from “included” to $2000 for supercharging, I am beginning to doubt Tesla can be trusted. I am realistic and want to believe that there is a reasonable explanation, but I am concerned by reading on the forums how Tesla reps were implying the Elon misspoke at the Supercharger launch about an additional cost. It seems hard for me to believe that this is good business practice. I would really appreciate a reply or blog post next week explaining this change in a way that will repair my opinion of Telsa.

Best wishes,

Mark Peterman
P9318


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