cunews-tesla-s-supercharger-network-faces-7-5-billion-pressure-to-open-up-to-competitors

Tesla’s Supercharger Network Faces $7.5 Billion Pressure to Open Up to Competitors

Tesla’s Supercharging Network Might Allow Rivals in

Elon Musk, CEO of Tesla, has regularly discussed opening up the Supercharging network to other producers of electric vehicles but has not yet taken any concrete steps in the United States, where Tesla is the market leader. The CEO, though, could soon have a strong incentive to do so.

A regulation that would force Tesla to include the chargers used by its rivals in addition to its exclusive charging equipment in the US is anticipated to be finalized by the Department of Transportation. Tesla would lose out on the $7.5 billion in subsidies from the Biden administration, which intends to deploy 500,000 EV chargers nationwide, up from 100,000 in 2021, if it does not comply.

Encouragement for Broader Charging Infrastructure

According to proponents, a lack of infrastructure for charging electric vehicles has slowed their uptake and reduced their ability to have a beneficial environmental impact. Despite Musk’s earlier opposition to government engagement, there are signs that the firm may soon democratize its network as a result of pressure from the US government.

In response to requests from Ohio and Arizona for charging plan submissions, Tesla has provided advice to the Biden administration on how to design the charging scheme. The business has also stated that it is willing to update current chargers or create new ones in order to comply with federal regulations.

Act of Balance for Tesla

With quick, dependable, and many chargers totaling over 40,000 throughout the world, Tesla’s Supercharger network is commonly regarded as the best in the US. Due to a special connector that only connects to Tesla automobiles, the network has, however, only been accessible to Tesla owners.

According to experts, opening up the network might give Tesla a source of capital and income, but it could also reduce the brand’s exclusivity and make network administration more difficult.

The final criteria for EV chargers to qualify for financing under the $7.5 billion plan to electrify roads and interstates throughout the country will shortly be released by the Department of Transportation. Except for Tesla’s Superchargers, the chargers must use a combined charging system (CCS), which is the norm for almost all charging stations in the US. Once the regulations are set, any charger that wants to get funding from the government will need to adhere to the CCS standard.

Tesla has also suggested that its Superchargers should be eligible for discounts if they are situated next to CCS chargers that support rival brands.


Posted

in

by

Tags: