Tesla Stock Jumps 8% as Free Supercharging for Life Makes a Comeback

Tesla (TSLA) shares surged nearly 6% Wednesday to notch their first record close in three years. The gains came after Goldman Sachs and Morgan Stanley analysts raised their price targets, though they represented a discount from Tesla's record closing price Wednesday. Tesla shares have surged since Donald Trump's reelection, amid hopes CEO Elon Musk's close ties with the President-elect could benefit the company. Tesla's second-quarter deliveries were strong, but that wasn't the end of the good news for investors. Reports of the demise of electric vehicle (EV) sales appear to have been exaggerated. At least that's the conclusion that investors are drawing after Tesla (TSLA 5.98%) reported its second-quarter EV delivery numbers today. After the EV leader reported stronger-than-anticipated vehicle deliveries, Tesla shares led the S&P 500 gainers for the second straight day. As of 10:55 a.m. ET, the stock was up by 8.6% after jumping by more than 6% yesterday. Tesla stock was a beneficiary yesterday ahead of its report after several Chinese EV makers reported strong sales data. But there was even more to like than most anticipated from Tesla's update today. Not just about EV sales Tesla delivered nearly 444,000 EVs in the second quarter. Investors had been reducing expectations throughout the period resulting in a consensus estimate of 439,000 units, according to FactSet. The reported figure was almost 5% lower than the year-ago period, but there were some positive facets of the report that investors may be focused on. In addition to beating estimates, the second quarter featured a drawdown in inventories as deliveries outpaced the 410,831 EVs it produced. A buildup of inventories due to lower perceived demand was a fear that helped drive Tesla's share price down earlier this year. But the stock has now rebounded with a nearly 30% gain over just the last month. The good news from today's report didn't end there, either. The company noted a record 9.4 GWh (gigawatt hours) of energy storage products deployed in the three-month period. That more than doubled the previous record of 4.1 GWh reported in the first quarter. There's been a surge in interest in energy storage products to smooth out power supply as renewable energy sources are installed for applications including growing data center construction. That surge in deployments bodes well for yet another source of revenue for Tesla. Investors will look for even more updates from the company when it reports full second-quarter financials on July 23 and provides an update on its self-driving technology on Aug. 8.



Free Supercharging: it’s one of Tesla’s best-known perks and a program that helped change the minds of many towards accepting Tesla as a viable road trip option. Married with benefits from government EV incentives, Tesla’s Free Supercharging (originally Unlimited Free Supercharging) helped bring the real-world cost of buying a Tesla into the realm of possibility for those on the edge of an EV purchase. Free Supercharging is also one of the more confusing benefits. How does the renewed Free Supercharging for Life program impact Tesla's competitive position in the EV market? The renewed Free Supercharging for Life program, which offers unlimited free Supercharging for the life of the vehicle, significantly enhances Tesla's competitive position in the EV market. This program provides several advantages:

1. Attracts new customers: The program appeals to new customers who are considering purchasing an EV, as it reduces the total cost of ownership. For instance, a Tesla Model S owner who drives 15,000 miles per year and charges at Superchargers would save around $1,500 annually compared to a similar EV without free Supercharging (based on average electricity and charging costs).
2. Differentiates Tesla from competitors: While other EV manufacturers offer charging networks and incentives, none currently match the scale and convenience of Tesla's Supercharger network or the lifetime free charging benefit. This differentiation helps Tesla stand out in the competitive EV market.
3. Encourages long-distance travel: Free Supercharging for Life encourages Tesla owners to take longer road trips, as they can charge their vehicles for free at Supercharger stations. This increases customer satisfaction and loyalty, as well as the overall visibility of Tesla vehicles on the road.
4. Reduces range anxiety: The widespread availability of Superchargers and the free charging benefit help alleviate range anxiety, a common concern among EV owners. This further enhances the appeal of Tesla vehicles compared to competitors.



In conclusion, the renewed Free Supercharging for Life program strengthens Tesla's competitive position by attracting new customers, differentiating the brand from competitors, encouraging long-distance travel, and reducing range anxiety. As Tesla continues to innovate and expand its offerings, the company's stock price is likely to remain volatile, but the long-term outlook remains positive. Investors should keep an eye on Tesla's upcoming earnings reports and any developments related to its self-driving technology.