More Than Half Of Respondents Are Not Interested In Tesla Motors Inc (NASDAQ:TSLA)’s Battery Swapping Scheme, Says Survey

Tesla Motors Inc (NASDAQ:TSLA)’s CEO, Elon Musk, hinted at a recent shareholder meeting that their battery swap technology wasn’t very popular. The sentiments have been backed by independent researchers at Jefferies. Analysts Dan Dolev and his team at Jefferies found out that 54% of the respondents they contacted showed a lack of interest in Tesla’s battery swap scheme.

Tesla’s battery swap technology was once billed as a breakthrough. The technology allows Tesla drivers to replace their spent batteries with loaded ones in just about 90 seconds. The idea was to give Model S drivers another option to recharge their cars, especially if they needed a faster recharge. It would cost a driver between $60 and $80 to swap batteries and drive away with a fully loaded one.

According to Musk, just a tiny fraction of Model S drivers that they invited at the swap station showed interest in the battery swapping technology. Tesla Motors Inc (NASDAQ:TSLA)’s battery swapping station is located in California, between Los Angeles and San Francisco.

Faster charging kill swap

In the survey, conducted by Dolev and the team, less than half of Model S drivers believe that the battery swap technology is useful to them. According to Dolev, the possible reason for the lukewarm interest in the battery swapping scheme could have much to do with improved charging solutions.

Charging at Tesla’s Superchargers has become faster, such that a 40-minute charge is enough to give you 80% battery charge.

Musk also noted that drivers charge their cars when they have stopped to eat and stretch their legs, which makes faster Superchargers a better option than battery swapping.

No failure

The lack of interest in battery swap technology means that Tesla Motors Inc (NASDAQ:TSLA) may not expand the rollout of the technology. However, the lukewarm reception of the battery swap system doesn’t necessarily imply failure on the side of Tesla. The thing is that the company has been able to learn useful lessons from the progress of the technology that it can apply elsewhere.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

You may also like...

Read previous post:
apple google
Google Inc (NASDAQ:GOOGL)’s Google Maps v/s Apple Inc. (NASDAQ:AAPL)’s Apple Maps

For Google Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL), there is no doubt their competition goes a long way, even including...