Tesla Obliged to Eliminate 64 Superchargers from New Jersey Turnpike Following State's Agreement with Different Charging Company
In a recent development, Tesla has expressed its readiness to re-engage with the New Jersey Turnpike Authority (NJTA) and Governor Murphy to invest in New Jersey Turnpike sites, following the NJTA's decision to award an exclusive charging provider contract to Applegreen Electric [1].
Tesla had proposed above-market commercial terms, including plans to upgrade existing equipment with displays and NACS "Magic Dock" adapters, to the NJTA. However, the NJTA's amended agreements with Applegreen in March 2023 made Applegreen the exclusive offering for EV charging on the Turnpike, denying Tesla the opportunity to co-locate its Superchargers along the New Jersey Turnpike. As a result, Tesla was required to decommission 64 Supercharger stalls along the Turnpike [1].
This decision has been met with criticism, with Tesla arguing that it limits competition and undermines New Jersey's clean transportation goals. The lack of transparency and exclusivity arrangement has sparked allegations of corruption, including public statements by Elon Musk [1].
Applegreen, known for entering into long-term, exclusive agreements with state transportation authorities for operating travel plazas and associated EV charging infrastructure, has a history of such arrangements in other states such as Massachusetts and Colorado [2][3]. This pattern suggests that the NJTA's contract with Applegreen fits into a broader strategy favouring centralized, long-term partnerships with a single operator for highway service and EV charging facilities.
Despite the setback, Tesla will continue expanding the best charging infrastructure off the New Jersey Turnpike to serve EV drivers in the state. The company has constructed 116 Supercharger stalls off the Turnpike to ensure uninterrupted service for its customers [1]. Tesla's in-car Trip Planner will continue to automatically redirect drivers to these alternative charging locations.
Tesla remains advocating for more infrastructure and co-location with third-party charging providers. The decommissioning of Superchargers along the New Jersey Turnpike does not include the 116 stalls constructed off the Turnpike. The NJTA plans to begin activating the new Applegreen Electric chargers on June 6 at six major service areas, with additional installations scheduled through the summer and fall at other rest stops [1].
Sources: [1] Electrek. (2023). Tesla's Superchargers removed from New Jersey Turnpike after NJTA awards exclusive contract to Applegreen. Retrieved from https://electrek.co/2023/03/28/teslas-superchargers-removed-from-new-jersey-turnpike-after-njta-awards-exclusive-contract-to-applegreen/ [2] MassLive. (2021). Applegreen to operate 14 travel plazas in Massachusetts. Retrieved from https://www.masslive.com/news/2021/05/applegreen-to-operate-14-travel-plazas-in-massachusetts.html [3] Colorado Public Radio. (2021). Applegreen to open seven travel centers along I-25 in Colorado. Retrieved from https://www.cpr.org/2021/07/22/applegreen-to-open-seven-travel-centers-along-i-25-in-colorado/
- Amidst criticism over limiting competition and allegations of corruption, Tesla is pushing for more co-location with third-party charging providers in the transportation industry, despite having to decommission 64 Supercharger stalls on the New Jersey Turnpike following Applegreen Electric's exclusive contract.
- The finance sector is seeing a potential shift in the automotive industry as Tesla continues to invest in New Jersey Turnpike sites, looking to expand the best charging infrastructure off the Turnpike, even as Applegreen Electric prepares to activate their chargers on June 6, under a long-term, exclusive agreement with the NJTA.
- Technology innovations in the EV charging industry are on display, with Tesla introducing above-market commercial terms such as upgrading existing equipment with displays and NACS "Magic Dock" adapters, while Applegreen Electric, known for their exclusive partnerships with state transportation authorities, is set to roll out new chargers along the New Jersey Turnpike, following the NJTA's decision in favor of them.
