Tesla to Open U.S. Charging Network to Rivals as Part of $7.5 Billion Federal Program

Tesla Supercharging network

Tesla’s decision to open its charging network to competitors positions it as the universal “filling station” of the EV era.

Tesla has announced that it will open part of its U.S. charging network to electric vehicles (EVs) made by competitors. This move is part of a $7.5 billion federal program aimed at expanding the use of EVs and reducing carbon emissions.

By late 2024, Tesla plans to open 3,500 new and existing Superchargers to non-Tesla customers along highway corridors, and offer 4,000 slower chargers at locations such as hotels and restaurants. The aim of the program is to build 500,000 EV chargers by 2030, up from 130,000 currently.

The decision by Tesla to open up its charging network to non-Tesla vehicles could also have significant implications for the electric motorcycle market. Currently, most electric motorcycles have significantly shorter ranges than their gas-powered counterparts, which has made them less appealing to riders who frequently go on long rides.

By gaining access to Tesla’s expansive charging network, electric motorcycle manufacturers could potentially increase the appeal of their bikes and alleviate range anxiety for riders. This would help to promote the wider adoption of electric motorcycles and bring them closer to the mainstream. As the market for electric motorcycles grows, it could lead to further expansion of the charging network to accommodate the unique needs of our market segment.

This development could help Tesla become the universal “filling station” of the EV era, but it may also erode its competitive advantage since it has had exclusive access to the largest network of high-speed Superchargers in the U.S. The decision by Tesla to open up its network was welcomed by the White House and President Joe Biden, who tweeted that it would be a “big deal” and “make a big difference.”

In response to President Biden’s tweet, Tesla CEO Elon Musk said, “Thank you, Tesla is happy to support other EVs via our Supercharger network.” Under the federal program, Tesla will be eligible for a subsidy as long as its chargers allow other vehicles with the federally backed charging standard called CCS (Combined Charging System) to charge.

Tesla Supercharging network

Currently, Tesla has 17,711 Superchargers, accounting for about 60% of total U.S. fast chargers, which can add hundreds of miles of driving range in an hour or less. There are also nearly 10,000 “destination” chargers with Tesla plugs that can recharge a vehicle overnight. Tesla has not yet revealed when, where, or how it will open its chargers to non-Tesla customers.

Investors and U.S. EV enthusiasts have been waiting for action on chargers from Musk. The company has already opened some Superchargers in Europe and Australia to non-Tesla owners since 2021. Analysts said the amount of federal funds at stake meant Musk had to act on the plan or risk other charging companies, such as EVgo Inc and ChargePoint Holdings Inc, taking the market.

While this decision could expand funding and revenue for Tesla, it could also erode the brand’s exclusivity and make it difficult for the automaker to manage the network. “There is a strong likelihood that if they open the Supercharger network to other vehicles, their current excellent reliability rate will decline significantly,” said Guidehouse Insights analyst Sam Abuelsamid.

Source: Reuters

We love your comments. Keep it positive and respectful!

%d bloggers like this: