HeyMomTheMeatloaf
Active Member
Short term pain for long term gains.
I disagree about DCFC being a losing business proposition.
Look at the margins of a gas station. Cut throat.
Look at the DCFC networks. Electrify America charging 43c/kWh. Tesla charging anywhere from 29c-42c/kWh. Electricity rates per kWh are as low as 1c in super-off peak times, and in the most expensive regions - as much as 30c/kWh.
Commercial pricing is different, and they have the opportunity to secure better rates than residential rates. In many parts of the country; Tesla/EA are able to purchase electricity, and mark it up 300-400%.
The math on this is going to vary; but I've never seen a scenario where the DCFC is providing electricity at a loss. The rate is always more expensive.
Plus - no gas station has ever been able to charge a $1/minute idle fee.
The startup costs are high. But vertical integration and economies of scale can help - if you have the cash (or cash flow). Over time, these DCFC are slowly recouping their costs.
I disagree about DCFC being a losing business proposition.
Look at the margins of a gas station. Cut throat.
Look at the DCFC networks. Electrify America charging 43c/kWh. Tesla charging anywhere from 29c-42c/kWh. Electricity rates per kWh are as low as 1c in super-off peak times, and in the most expensive regions - as much as 30c/kWh.
Commercial pricing is different, and they have the opportunity to secure better rates than residential rates. In many parts of the country; Tesla/EA are able to purchase electricity, and mark it up 300-400%.
The math on this is going to vary; but I've never seen a scenario where the DCFC is providing electricity at a loss. The rate is always more expensive.
Plus - no gas station has ever been able to charge a $1/minute idle fee.
The startup costs are high. But vertical integration and economies of scale can help - if you have the cash (or cash flow). Over time, these DCFC are slowly recouping their costs.
Yep I have read both articles when they came out. The only source is a table on a Texas Gov't website that was probably populated by some intern. Nowhere does it say that is the cost of a Tesla charger, it's just how much they are requesting per charger. Hell, it might only cover the cost of adding a CCS dongle to an existing charger. Forbes, InsideEvs, and you are reading way too much into it.
People won't like hearing this, but Ford is smart to not build a charging network because it's signing up to lose money. Nobody (including Tesla) is making money on fast charging, which is the real reason they are talking about opening up their network.