Biden Administration Rejects Tesla's $100 Million Charging Grant Request Again
The U.S. Department of Transportation announced an additional $636 million for electric vehicle charging infrastructure projects, distributing funds to 49 applicants. Notably absent among the recipients was Tesla, whose request for nearly $100 million aimed at developing a big rig charging corridor was again dismissed. This move reflects ongoing challenges for Tesla in advancing its electric semi-truck initiative.
Tesla's Missing Bid
Tesla's proposal, crafted in collaboration with California's South Coast Air Quality Management District, sought significant investment from the Charging and Fueling Infrastructure (CFI) program, a part of the bipartisan infrastructure initiative signed by President Biden in 2021. Despite submitting an application, Tesla did not appear among the selected candidates for this funding round.
Challenges in Tesla's Semi Program
While Tesla has successfully delivered initial units of its Tesla Semi to major companies such as Pepsi and Frito-Lay, the broader commercial aspirations for the vehicle remain unmet. The company is in the process of establishing a production facility in Nevada, set to manufacture the electric semi-trucks unveiled in 2017. Tesla originally sought CFI funding in 2023 to support the creation of nine charging stations stretching from its former headquarters in Northern California to the Texas border. The envisioned network was expected to include eight 750kW chargers dedicated to the Tesla Semi, alongside four chargers available to other electric trucks, fulfilling a federal funding requirement.
Previous and Future Funding Rounds
Initial attempts by Tesla to secure funding under the "Transport Electrification Supporting Semis Operating in Arizona, California, and Texas" (TESSERACT) proposal were rebuffed in early 2024. The federal government allocated $623 million to 47 applicants at that time. Subsequently, another tranche of $521 million was distributed to 51 applicants in August 2024, and new applications were invited from mid-2024.
Persisting Efforts and Economic Adjustments
Despite earlier setbacks, Tesla continued to pursue the TESSERACT project. In April 2024, former policy VP Rohan Patel indicated key locations along the proposed 1,800-mile corridor would proceed regardless of federal support. However, the clarity of Project TESSERACT's status waned after Tesla enacted significant layoffs, slashing more than 10% of its workforce, including its charging team.
The possibility of further CFI funding remains, with $2.5 billion in total allocated by the infrastructure law. Yet, the Federal Highway Administration's website currently lists no estimated date for subsequent funding opportunities, casting doubt amid looming political shifts with the incoming Trump administration potentially influencing program priorities.