Tesla’s $100M EV Charging Project Snubbed Again in Latest Federal Funding Round
Tesla’s $100M proposal for an electric big-rig charging corridor was passed over again in the latest federal funding round, as challenges mount for the EV giant’s semi-truck program.
The U.S. Department of Transportation announced on Friday an additional $636 million in funding under the Charging and Fueling Infrastructure (CFI) program, awarding grants to 49 applicants for electric vehicle (EV) charging initiatives. However, Tesla’s ambitious application for nearly $100 million to establish a big-rig charging corridor was notably absent from the recipient list.
Tesla had partnered with California’s South Coast Air Quality Management District to secure funding for the project but was once again overlooked. This marks the second consecutive round where the EV giant’s proposal for the “Transport Electrification Supporting Semis Operating in Arizona, California, and Texas” (TESSERACT) initiative failed to gain approval.
Challenges in Tesla’s Electric Big Rig Program
The rejection adds to Tesla’s hurdles in scaling its electric big rig operations. While the company has delivered limited units of the Tesla Semi to early clients such as Pepsi and Frito-Lay, its larger commercial rollout remains delayed. Tesla is still constructing a manufacturing facility in Nevada for the electric semi-truck, initially unveiled in 2017.
The TESSERACT project, first proposed in 2023, aimed to build nine charging stations equipped with high-capacity 750kW chargers for Tesla Semis along a 1,800-mile route from northern California to southern Texas. The stations were also designed to feature additional chargers accessible to other EV trucks, fulfilling federal funding requirements for shared infrastructure. Despite Tesla’s commitment to invest $24 million of its funds into the project, it was passed over during the initial CFI awards in early 2024, where $623 million was distributed among 47 applicants.
Federal Funding Landscape
In August 2024, another $521 million was allocated to 51 applicants from the same pool. Tesla’s application did not cut, although the company reportedly continued pursuing the project independently. Rohan Patel, Tesla’s former policy VP, noted earlier in 2024 that several sites along the proposed route were “no-brainers even without funding.”
Despite Tesla’s efforts, the project’s future remains uncertain. Workforce reductions in 2024, including significant cuts to Tesla’s charging team, have compounded these challenges.
Future Funding Opportunities Unclear
The bipartisan infrastructure law, signed in 2021, set aside $2.5 billion for the CFI program. While additional funding rounds are theoretically possible, the Federal Highway Administration (FHWA) has not provided a timeline for the next notice of funding opportunity. The incoming Trump administration’s policy priorities may also influence the program’s trajectory.
Tesla’s absence from the latest funding awards highlights the competitive nature of federal grants and underscores the growing complexity of scaling EV infrastructure to support commercial fleets.
(Disclaimer: This article is for informational purposes only and is based on publicly available data and reports at the time of publication. While every effort has been made to ensure accuracy, the information provided may be subject to change. The views expressed in this article do not necessarily reflect those of the publication or its affiliates. Readers are advised to consult official sources for the most current updates.)
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