Biden Administration Rejects Tesla’s $100 Million Funding Request for Big Rig Charging Infrastructure – Again!
The Department of Transportation has recently announced a significant allocation of $636 million in funding aimed at enhancing the electric vehicle charging infrastructure across the United States. This funding will be distributed to 49 applicants, but notably absent from the list is Tesla, which had submitted a proposal for nearly $100 million to establish a charging corridor specifically for electric big rigs.
Funding Announcement Details
The announcement was made on a Friday, revealing that Tesla’s application, in partnership with the South Coast Air Quality Management District in California, was not selected for funding this round. This decision comes amidst ongoing challenges for Tesla in launching its electric big rig program.
Tesla’s Electric Big Rig Program
Tesla has made some progress in delivering early versions of its electric semi truck, known as the Tesla Semi, to customers such as Pepsi and Frito-Lay. However, the larger rollout of this commercial program has yet to be realized. Currently, Tesla is in the process of constructing a facility in Nevada dedicated to manufacturing the Tesla Semi, which was first unveiled in 2017.
Funding History and Project TESSERACT
Tesla initially applied for funding through the Charging and Fueling Infrastructure (CFI) program in 2023, part of a bipartisan infrastructure package signed by President Biden in 2021. The funding was intended to support the establishment of nine electric semi-truck charging stations stretching from Tesla’s former headquarters in northern California to the Texas border.
- The stations were planned to include:
- Eight 750kW chargers specifically for the Tesla Semi.
- Four additional chargers open to other electric truck brands, fulfilling federal funding requirements.
The initiative, dubbed “Transport Electrification Supporting Semis Operating in Arizona, California, and Texas” or TESSERACT, was overlooked in the first round of CFI awards in early 2024. During this round, the Federal Highway Administration (FHWA) awarded $623 million to 47 other applicants.
Subsequent Funding Rounds
In August 2024, the FHWA distributed another $521 million to 51 applicants from the same applicant pool, and they have begun accepting applications for a new round of funding in mid-2024.
Despite being excluded from the initial funding, Tesla has continued to pursue the charging corridor project. Former policy VP Rohan Patel mentioned that several locations along the 1,800-mile route were considered “no-brainers” even without federal support.
Future of Project TESSERACT
The future of Project TESSERACT remains uncertain, especially following layoffs that affected over 10% of Tesla’s workforce, including significant reductions within the charging team. There is potential for additional CFI funding, given that the bipartisan infrastructure law allocated $2.5 billion for such initiatives. However, the FHWA’s website currently states there is “[n]o estimated date” for the next announcement regarding funding opportunities. The impact of the incoming administration’s priorities on programs like CFI also remains unclear.
For more information on federal funding for electric vehicle infrastructure, visit the FHWA website.
