Tesla's New Supercharging Offer: A Lifeline for Model S Sales?

Tesla (TSLA) has rolled out a new incentive to boost sales of its premium Model S and X vehicles in the US, Canada, Puerto Rico, Europe, and the Middle East. The electric vehicle (EV) giant is offering free Supercharging for life to customers who purchase or lease a new Model S or X. This move comes as Tesla grapples with a decline in vehicle deliveries and increased competition in the EV market.

The offer, which applies to orders placed on or after December 13, 2024, is a significant departure from Tesla's previous Supercharging incentives. While the company has offered free Supercharging miles as an end-of-quarter incentive in the past, this new offer has no expiration date and is tied to the customer's Tesla account. However, it is not transferable to another vehicle, person, or order, and it does not apply to used vehicles, business orders, or vehicles used for commercial purposes.

Tesla's decision to bring back free Supercharging for life on the Model S and X is a clear attempt to stimulate sales of its flagship models. The company has faced criticism in recent years for its aging lineup of vehicles, and the Model S and X have been particularly hard hit. In a report earlier this year, we highlighted the fact that Model S and X sales were crashing, and Tesla was hiding it by bundling its sales with the Cybertruck. However, some Cybertruck recalls gave us a pretty good idea of how many trucks Tesla delivered during Q2, and by subtracting that from Tesla's reported numbers, we were able to estimate Model S and X sales of around 12,000-13,000 units. That's 31-37% down from the same period last year. Last quarter was even worse, with Tesla reporting only 22,915 vehicles delivered other than Model 3 and Model Y. When considering that Tesla most likely delivered between 12,000 and 15,000 Cybertrucks last quarter, Model S and X sales were likely at an all-time low of fewer than 10,000.

The question remains: will this new Supercharging offer be enough to turn the tide for Tesla's premium models? The effectiveness of this incentive will depend on several factors, including the target audience, the perceived value of the offer, and the competition in the market. While the Model S and X are Tesla's premium, high-performance sedans, and their target audience is likely to be more concerned with the vehicle's performance, features, and brand image than the cost of charging, the free Supercharging offer may still be appealing. However, the offer's perceived value will vary depending on the driving habits and needs of each customer, and Tesla's decision to tie the offer to the customer's Tesla account and not transferable to another vehicle or owner may limit its appeal.



In conclusion, Tesla's new Supercharging offer for the Model S and X is a significant attempt to boost sales of its premium models in the face of declining deliveries and increased competition. While the effectiveness of this incentive remains to be seen, it is clear that Tesla is taking steps to address the challenges it faces in the EV market. As the company continues to innovate and adapt, investors will be watching closely to see how this new offer impacts Tesla's financials and market position.