Biden admin rejects Tesla’s $100 million request for big-rig charging plan

Tesla’s ambitious plan for a cross-state semi-truck charging network hits another roadblock as federal funding continues to elude the EV giant.

Jan 16, 2025 - 13:41
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Biden admin rejects Tesla’s $100 million request for big-rig charging plan

The Biden administration rejected Tesla’s proposal for a $100 million grant to fund a big-rig electric charging corridor, the second such rejection handed down from the administration to Tesla in recent years, TechCrunch reported.

The Department of Transportation (DOT) announced Friday that $636 million in grants would go to 49 applicants for EV charging infrastructure, but Tesla and its partner, California’s South Coast Air Quality Management District, were notably absent from the list.

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The vision for project TESSERACT

Tesla first submitted the proposal in 2023 under the Charging and Fueling Infrastructure (CFI) program, which is part of a bipartisan infrastructure deal signed in 2021. The project, officially called “Transport Electrification Supporting Semis Operating in Arizona, California, and Texas,” or TESSERACT, aimed to build nine charging stations for electric semi-trucks along a route stretching from Fremont, California, to Laredo, Texas.

Proposed TESSERACT charging stations

TechCrunch

Each station would feature eight 750kW chargers for Tesla Semis and four chargers accessible to other electric trucks, fulfilling federal funding requirements for inclusivity. Despite an ambitious plan to invest $24 million of its own money alongside the federal funds, Tesla’s bid was also denied in the first and second rounds of CFI funding in 2024.

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Challenges for Tesla’s semi program

The latest rejection adds to the hurdles facing Tesla’s electric semi-truck program. While some early models have been delivered to customers like PepsiCo, Tesla’s commercial rollout has lagged, hindered by delays in completing its production facility in Nevada. Internal struggles, including workforce cuts and reductions in the company’s charging infrastructure team, have further complicated matters.

Tesla Chairman and CEO Elon Musk unveils the new 'Semi' electric Truck to buyers and journalists on November 16, 2017 in Hawthorne, California

(VERONIQUE DUPONT/AFP/Getty Images

Former Tesla policy VP Rohan Patel expressed optimism in 2024, stating that certain stations in the TESSERACT project would be “no-brainers even without funding.” However, progress appears to have stalled, leaving the fate of the 1,800-mile corridor uncertain.

While Tesla has struggled to secure funding, other companies and states have forged ahead with their charging infrastructure plans. According to Bloomberg Green, a record 766 high-speed charging stations came online in the U.S. during the fourth quarter of 2024, representing an 8% increase from the previous quarter. These stations are increasingly popping up in places like Alabama, Oklahoma, and South Dakota, expanding access for rural drivers and showcasing the growing momentum for consumer EV infrastructure outside coastal urban centers.

Related: Tesla shifts Cybertruck workers amid slowing demand

Final thoughts

With $2.5 billion allocated under the bipartisan infrastructure law, the CFI program could theoretically offer Tesla another chance. However, the Federal Highway Administration (FHWA) has not announced a timeline for the next round of funding opportunities.

The upcoming change in presidential administration could add to the uncertainty, shifting federal priorities away from EV initiatives. For now, Tesla’s big-rig charging corridor remains a bold vision, but it lacks the support needed to become a reality.

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