Tesla will offer up a portion of its US charging network to competitors, potentially transforming Tesla into the universal “charging station” of the electric vehicle (EV) age. The agreement is part of a $7.5 billion US program to increase EV adoption and reduce carbon emissions. Experts believe this will erode Tesla’s competitive advantage, as the company has exclusive access to the largest network of high-speed superchargers in the United States.
Tesla plans to open 3,500 new and existing superchargers along highway corridors to non-Tesla customers by late 2024. It would also provide 4,000 slower chargers in places like hotels and restaurants. Tesla would be eligible for a subsidy if its chargers allowed other vehicles with a Federally supported charging standard known as CCS to charge.
According to the US administration, Tesla has not committed to adopting CCS as its standard but must meet the standards to receive Federal assistance. Tesla presently has 17,711 superchargers, accounting for around 60% of all fast charges in the United States, which may add hundreds of miles of driving range in an hour or less.
Is it a win-win situation?
The US government’s initiative to gain access to Tesla’s network improves the administration’s ambition to build 500,000 EV chargers by 2030, up from 130,000 today. There are also almost 10,000 “destination” chargers equipped with Tesla plugs, which can charge a vehicle overnight.
According to Reuters, Tesla tweeted, “select Tesla Superchargers across the US will soon be open to all EVs.”
Tesla said on Twitter that it would open its chargers, but provided no details about when, where, or how. Tesla said that by the end of 2024, it had already planned to double the size of its US Supercharger network.
According to Reuters, US President Joe Biden stated that the decision to open up a “big part” of Tesla’s network to all drivers was a “big deal” and would “make a big difference.”
Chief Executive Elon Musk said, “Thank you, Tesla is happy to support other EVs via our Supercharger network.”
According to Reuters, while opening up its networks would enhance funding and revenue for Tesla, it would also diminish the brand’s uniqueness and make it more difficult for the manufacturer to manage the network.
