Tesla's Big Rig Charging Dreams Dashed by Biden Admin

Elon Musk's Tesla (TSLA) has had its fair share of setbacks, but the latest one might sting a bit more. According to a recent report, the Biden administration has brushed off Tesla's application for about $100 million to fund a big-rig charging corridor. Musk's response? A simple "Sigh." Let's dive into the details and explore what this rejection means for Tesla's electric big rig plans.

Tesla first requested funding in 2023 for its Project TESSERACT, aiming to build nine semi-truck charging stations between Laredo, Texas, and Fremont, California. The project, which would have cost around $100 million, was passed over in the first round of CFI awards in early 2024. Despite the initial setback, Tesla continued pursuing the charging corridor idea, with former policy VP Rohan Patel acknowledging that some sites along the route were "no-brainers even without funding."

However, the status of Project TESSERACT remains unclear following Tesla's workforce reduction and the gutting of its charging team. With the incoming Trump administration's priorities uncertain, there's no guarantee that future rounds of the CFI program will provide the funding Tesla needs to move forward with its charging corridor project.



So, what alternative funding sources or strategies could Tesla explore to move forward with its charging corridor project? Here are a few options:

1. State Funding Opportunities: Tesla could turn to state funding opportunities, such as California's Clean Vehicle Rebate Project (CVRP), which offers rebates for the purchase or lease of new, eligible zero-emission vehicles, including electric trucks.
2. Future Rounds of CFI Program: Although Tesla was not selected in the first round, there may be additional funding opportunities in future rounds of the Charging and Fueling Infrastructure (CFI) program. Tesla could refine its application and resubmit it in subsequent rounds.
3. Private Partnerships: Tesla could form partnerships with private companies or organizations that share its interest in promoting electric trucking. These partnerships could provide additional funding or resources to support the charging corridor project.
4. Tesla's Own Resources: While Tesla initially planned to contribute around $24 million of its own money to the project, the company could increase its investment if necessary. This would allow Tesla to move forward with the project without relying on external funding.
5. Investment from Tesla's Shareholders: Tesla could also explore raising additional funds from its shareholders, either through a stock offering or by tapping into its existing cash reserves. This would provide Tesla with the financial resources it needs to complete the charging corridor project without relying on external funding.

In conclusion, Tesla's rejection from the Charging and Fueling Infrastructure (CFI) Discretionary Grant program poses challenges to the company's plans for expanding its electric big rig charging network. However, by exploring alternative funding sources and strategies, Tesla can potentially move forward with its charging corridor project, even if it is not selected for federal funding. As Musk himself might say, "Don't panic, we'll figure something out."