Tesla is now using ‘Tesla Electric’, its electric utility service in Texas, to help sell cars with a new incentive.
After gaining experience through its virtual power plants (VPPs), Tesla took things a step further with the launch of “Tesla Electric” back in 2022.
Instead of reacting to specific “events” and providing services to your local electric utilities, as Tesla Powerwall owners have done in VPPs in California, Australia, and a few other markets, Tesla Electric is actively and automatically buying and selling electricity for Tesla Powerwall owners – providing a buffer against peak prices.
The company is essentially becoming an energy retailer.
Tesla Electric is currently only available to Powerwall owners in Texas and the UK, but the company has plans to expand its products through this new division.
The company has been growing its Tesla Electric userbase in Texas and now it plans to use it to help sell cars.
Tesla has two different plans under the program:
| Feature | Tesla Electric Fixed Plan | Tesla Electric Dynamic Plan |
|---|---|---|
| Pricing Structure | Competitive fixed rate for electricity, with a discounted rate during low-cost hours. | Competitive variable rate, with higher rates during peak demand periods. |
| Contract Term | 12-month commitment. | Month-to-month flexibility. |
| Unlimited Vehicle Charging | Available for an additional $15/month per vehicle, allowing unlimited charging. | Available for an additional $25/month per vehicle, allowing unlimited charging. |
| Powerwall Credits | Earn $400 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with Tesla managing the Powerwall to share energy with the grid when needed. | Earn $120 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with the customer managing the Powerwall to optimize earnings. |
| Energy Sharing with Grid | Sell energy back to the grid at a fixed rate per kWh. | Sell energy back to the grid at 90% of the real-time market price per kWh. |
The first one enable you to charge your electric car for just $15 a month.
With this new incentive, Tesla is brining that down to $5 a month for a year for people who take delivery by the end of the year:
Get $5/mo Unlimited Overnight Charging With Tesla
To get unlimited overnight charging for $5 per month per vehicle for a full year, you must complete the following steps by December 31, 2024:
- Order and take delivery of a new Tesla vehicle
- Sign up for the Tesla Electric Fixed Plan
To be eligible, you need to live in an area of Texas that allows you to choose your electricity provider, be a new Tesla Electric member and take delivery of a new Tesla vehicle. Promotion is subject to change at any time.
This appear to be part of Tesla’s effort to deliver a record number of more than 515,000 vehicles in Q4 in order for its annual deliveries not to be down for the full year.
ver the last few weeks, we have been reporting on a series of sale incentives that Tesla has put in place to make sure it has the demand to achieve this record quarter.
In Europe, it includes a year of free Supercharging and heavy discounts.
In the US, there are also good inventory discounts, 3 months of free Supercharger and FSD, FSD transfer, and more.
And everywhere, Tesla is heavily subsidizing loans with lower interest rates.
But it’s the first time that Tesla is using such a targeted incentive, at the state level, and using its Tesla Electric program.
It’s interesting.