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Tesla (TSLA, Financial) shares rebounded Friday after they plunged amid a recent correction tied to a soft fourth-quarter delivery report, surging 8%. As it seeks to rekindle demand for its luxury sedan, the electric vehicle giant said it is bringing back a perk once offered on new model S purchases or leases: "free Supercharging for life."
This free Supercharging perk is nontransferable and is solely for vehicles belonging to owners and lessees of the vehicle. As used cars, business orders and vehicles used for commercial purposes ridesharing or deliveries are excluded. To qualify, users have to consume not just electricity but also utilize the associated Supercharger station, and Tesla has the right to take away the perk for excessive use or unpaid Supercharger-related fees.
The reintroduction of free Supercharging represents a major departure for Tesla, which stopped offering the allowance in 2018 as a means to stay financially viable. This perk has returned in the past, but never with such a long term commitment at the lifetime of one owner or renter.
The sales slump continues as Model S and Model X sales fall way short of 10,000 units sold last quarter, year over year. Tesla hopes by bringing back this popular benefit it can rekindle interest in its flagship sedan and support its goal of accelerating electric vehicle adoption.
Free Supercharging is more than a way to conserve $0.15 on each gas station visit; it really is a substantial savings for frequent travelers, especially versus paying to refuel them at each gas station. By reducing charges, Tesla strengthens its leadership as a pioneer of clean energy technology, and remains determined to reduce dependsance on gas powered vehicles worldwide.
This article first appeared on GuruFocus.