Biden Admin Rejects Tesla's $100M Charging Funding Request

Federal Funding Denied Again for Tesla's Big-Rig Charging Corridor

The Department of Transportation revealed on Friday a further $636 million in grants destined for 49 applicants focused on expanding electric-vehicle charging infrastructure. Notably, Tesla’s application requesting nearly $100 million to establish a dedicated charging corridor for heavy-duty trucks was, once more, unsuccessful.

Tesla's Application Rejected

Tesla was not listed among the grant recipients. Confirmation of their application for this funding cycle was provided to TechCrunch by the South Coast Air Quality Management District, Tesla’s partner in the project.

This rejection occurs as Tesla encounters challenges in scaling up its electric big-rig initiative. While initial deliveries of the Tesla Semi have been made to clients such as Pepsi and Frito-Lay, broader commercial deployment remains unrealized.

Project Background and Initial Request

Tesla initially submitted its funding request in 2023 through the Charging and Fueling Infrastructure (CFI) program. This program is a component of the bipartisan infrastructure legislation signed into law by President Biden in 2021.

The company’s original proposal involved utilizing the requested funds, alongside a $24 million investment of its own capital, to construct nine charging stations for electric semi-trucks. These stations would span the distance from Tesla’s former California headquarters to the Texas-Mexico border.

Station Specifications and Project Details

Each planned station was designed to house eight 750kW chargers specifically for the Tesla Semi, alongside four additional chargers accessible to other electric trucks – a stipulation for receiving federal funding.

Officially named “Transport Electrification Supporting Semis Operating in Arizona, California, and Texas,” or TESSERACT, the project was not selected during the initial round of CFI awards announced in early 2024. This first round distributed $623 million to 47 applicants.

Subsequent Funding Rounds and Tesla's Persistence

In August 2024, the FHWA allocated an additional $521 million to 51 applicants from the same pool. Simultaneously, the agency initiated the acceptance of applications for a new funding round in mid-2024.

Despite being excluded from the first round, Tesla continued to pursue the charging corridor concept, as reported by TechCrunch in April 2024. Rohan Patel, formerly Tesla’s VP of Policy, indicated that certain locations along the 1,800-mile route were viable “even without funding.”

Current Status and Future Outlook

Following this statement, the status of Project TESSERACT became uncertain, particularly after Tesla implemented workforce reductions exceeding 10%, significantly impacting its charging team.

Further CFI funding may become available, as the bipartisan infrastructure law designated $2.5 billion for the program. However, the FHWA website currently states “[n]o estimated date” for the next funding opportunity. The potential impact of a change in administration on programs of this nature also remains unclear.

• Key Players: Department of Transportation, Tesla, South Coast Air Quality Management District
• Funding Program: Charging and Fueling Infrastructure (CFI) program
• Project Name: TESSERACT (Transport Electrification Supporting Semis Operating in Arizona, California, and Texas)