Tesla Inc has announced plans to open part of its U.S. charging network to electric vehicles (EVs) made by rivals. This is part of a $7.5 billion federal program aimed at expanding the use of EVs and reducing carbon emissions.
The move could turn Tesla into the universal “filling station” of the EV era, but it could also erode its competitive edge, which has so far been based on exclusive access to the biggest network of high-speed Superchargers in the United States.
By late 2024, Tesla plans to open 3,500 new and existing Superchargers along highway corridors to non-Tesla customers. It will also offer 4,000 slower chargers at locations like hotels and restaurants. The announcement was praised by President Biden, who said that it would make a big difference.
Tesla’s decision to open up its charging network is a major development in the EV industry. It could help to address one of the biggest challenges facing the EV market: the lack of a widespread charging infrastructure. By opening up its Supercharger network to other EVs, Tesla is making a significant contribution to the federal government’s plan to build 500,000 EV chargers by 2030.
However, the move could also pose a risk to Tesla’s competitive advantage. Tesla has 17,711 Superchargers, accounting for about 60% of total U.S. fast chargers. By allowing rival EVs to use its network, Tesla is essentially helping to create a level playing field for the industry. This could put pressure on Tesla to continue to innovate and improve its vehicles, in order to maintain its market share.
The move also raises questions about the future of charging standards in the industry. The federal program requires that Tesla’s chargers allow other vehicles with a federally backed charging standard called CCS to charge. Tesla has not committed to adopting CCS as its standard, but it must comply with the requirements to qualify for federal funds.
In a statement, Tesla wrote that “Select Tesla Superchargers across the US will soon be open to all EVs,” without elaborating on when, where and how it would open its chargers. The company had already planned to more than double its U.S. Supercharger network by the end of 2024.
Overall, Tesla’s decision to open up its Supercharger network to rival EVs is a positive development for the industry. It could help to accelerate the adoption of EVs and reduce carbon emissions. However, it also poses a risk to Tesla’s competitive advantage and raises questions about charging standards in the industry.
