Tesla To Start Charging Some Newer Owners For Use Of Its Supercharging Network

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of Tesla Motors Inc. rose in morning trade Monday, but pared some of its premarket gains, after the electric car maker said it would start charging its newer customers to use its supercharging network depending on use. Tesla had made the change--the company has previously said use of its Supercharging network was free--ahead of the launch of its less expensive Model 3 vehicle. Tesla's ordered after Jan. 1, 2017 will have access to 400 kWh--about 1,000 miles--of free Supercharging credits, but will have to pay after that. Tesla said the cost will be "less than a price of filling up a comparable gas car." The company said the changes won't affect Teslas ordered before Jan. 1, as long as delivery is taken before April 1, 2017. "We will release the details of the program later this year, and while prices may fluctuate over time and vary regionally based on the cost of electricity, our Supercharger Network will never be a profit center," Tesla said on its blog. The stock climbed 1.2% minutes after the open, after being up as much as 2.2% ahead of the open. It has tumbled 19% year to date, while the S&P 500 has gained 3.2%.

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