It’s so unexpected: charging should be steady, reliable, predictable income for the foreseeable future, no matter whose BEVs are most popular. They dominate supercharging in the US at the moment, but rapid buildout means someone else has a chance. Don’t they want to lock in this market?
I guess I assume it’s a profitable market , independent of vehicle sales. I wonder if that’s true
I wonder if they miscalculated the install + maintenance cost vs the charging fee they’re giving customers. Like if it’s not balanced correctly they could be losing money on each charging station. Maybe the stations require more maintenance than they anticipated?
That seems like a super basic thing to do if you’re running the business, but so much of the initial rollout was about availability and low cost and do-it-now that maybe that was a secondary concern or they thought there’d be higher adoption by now. It also seems like a simple fix, raise charging prices and say why. But maybe either the discrepancy is too big or they’re worried about customer/media backlash.
Or maybe it’s another example of “move fast and break things” running into the real world and not being viable.
The startup cost on their charger stations is pretty high and they typically have a deal with land owners to have them installed, so I doubt they hit break even for years on one bank.
They were aggressive in putting up charging areas to ease the hurdle of charging for potential customers when they were the only viable BEV and sales have slumped pretty badly now, so spending more on chargers at this point is financially unwise. With charger competition ramping up they are not in a great place for the financial aggression needed to have the chargers pay off in any timespan with limited income from car sales.
If they had been of the mindset to corner the charging market, instead of driving sales of their vehicles, they would have had an entirely different strategy and could have had a great steady income off chargers.
It’s so unexpected: charging should be steady, reliable, predictable income for the foreseeable future, no matter whose BEVs are most popular. They dominate supercharging in the US at the moment, but rapid buildout means someone else has a chance. Don’t they want to lock in this market?
I guess I assume it’s a profitable market , independent of vehicle sales. I wonder if that’s true
I wonder if they miscalculated the install + maintenance cost vs the charging fee they’re giving customers. Like if it’s not balanced correctly they could be losing money on each charging station. Maybe the stations require more maintenance than they anticipated?
That seems like a super basic thing to do if you’re running the business, but so much of the initial rollout was about availability and low cost and do-it-now that maybe that was a secondary concern or they thought there’d be higher adoption by now. It also seems like a simple fix, raise charging prices and say why. But maybe either the discrepancy is too big or they’re worried about customer/media backlash.
Or maybe it’s another example of “move fast and break things” running into the real world and not being viable.
That seems to be the case with many of the brands of public charging stations.
There are often more plugs out of service or operating at lower than rated capacity than there are fully working ones.
The startup cost on their charger stations is pretty high and they typically have a deal with land owners to have them installed, so I doubt they hit break even for years on one bank.
They were aggressive in putting up charging areas to ease the hurdle of charging for potential customers when they were the only viable BEV and sales have slumped pretty badly now, so spending more on chargers at this point is financially unwise. With charger competition ramping up they are not in a great place for the financial aggression needed to have the chargers pay off in any timespan with limited income from car sales.
If they had been of the mindset to corner the charging market, instead of driving sales of their vehicles, they would have had an entirely different strategy and could have had a great steady income off chargers.