Tesla has been adopted by the Texas government as the standard for the public charging network for electric cars, and rival Rivian has officially joined. According to Reuters, the Texas government has requested electric vehicle charging companies to adopt Tesla’s charging standard, known as the North American Charging Standard (NACS), and the nationally recognized CCS charging standard if they want to participate in the federally funded highway electrification plan.
Texas, which is home to Tesla’s headquarters and its Austin Gigafactory, has become the first state in the US to mandate the use of Tesla’s NACS charging technology. This move is seen as a boost to Tesla CEO Elon Musk’s hopes of making NACS the national charging standard.
The Texas Department of Transportation announced that Ford Motor, General Motors, and Rivian have also decided to adopt NACS, which has changed the requirements for the first phase of the plan. DC fast chargers for electric vehicles will now be required to be equipped with both a CCS and a NACS plug.
Under President Biden’s “Reducing Inflation Act,” charging companies must provide CCS plugs to be eligible for up to $7.5 billion in federal government subsidies. This funding will be used to build new high-speed chargers along 12,070 kilometers of the nation’s busiest freeway. Each state has the power to set its own guidelines as long as they meet minimum federal standards.
Tesla currently has about 2,000 supercharging stations and over 21,000 supercharging piles in the US, accounting for approximately 60% of the existing local fast charging infrastructure. After Ford joined Tesla’s electric vehicle charging network in May, General Motors announced earlier this month that it would cooperate with Tesla to use its charging network and technology in North America, saving $400 million in charging infrastructure costs.
Following Ford and GM’s cooperation with Tesla, other top US charging companies such as ChargePoint and EVgo have expressed their desire to add the NACS standard to their charging infrastructure. Several manufacturers and operators of CCS systems, including ABB E-mobility North America, Tritium DCFC, FreeWire, SK Signet, and BTC Power, have also announced their plans to add NACS to their charging stations.
In addition, Rivian, often referred to as the “Tesla killer,” will adopt NACS, allowing its customers to use Tesla’s charging network. Rivian plans to enable its car owners to use 12,000 Tesla Superchargers equipped with adapters in the US and Canada starting next spring. Although Rivian has its own network of small fast chargers and plans to build over 3,500 charging stations in 2021, it will also incorporate Tesla’s charging interface standard into its vehicles from 2025.
Rivian CEO RJ Scaringe sees this as an opportunity to leverage Tesla’s charging infrastructure. Rivian’s existing charging network will also provide Tesla standard plugs for Tesla owners who use Rivian charging stations, which is expected to generate significant income. Scaringe believes the network will soon become cash flow positive.
In response to Tesla’s growing influence, South Korea’s Hyundai Motor President and CEO Jaehoon Chang has expressed interest in making their electric vehicles more compatible with Tesla’s charging standard in North America.
Tesla’s stock rose 5.34% to close at $274.45 on Tuesday, and Rivian’s stock closed at $15.7, up 6%. Before the US stock market opened on Wednesday, Tesla rose 1.35% to $278.15, and Rivian rose 1.59% to $15.95.
Overall, the adoption of Tesla’s charging standard by the Texas government and the inclusion of Rivian in the network highlight the increasing dominance of Tesla in the electric vehicle charging market.
What advantages does Tesla’s extensive charging network provide in the electric vehicle market
Costs. Now, with Rivian also joining Tesla’s charging standard, it further solidifies Tesla’s dominance in the electric vehicle charging market.
The decision by the Texas government to adopt Tesla’s NACS charging standard is a significant milestone in the push for a unified charging infrastructure across the country. With Texas being home to Tesla’s headquarters and Gigafactory, it comes as no surprise that the state is leading the way in implementing this standard.
By requiring electric vehicle charging companies to use both the NACS and CCS charging standards, Texas is ensuring compatibility and accessibility for all electric vehicle owners. This move will greatly benefit consumers and promote the adoption of electric vehicles, as it eliminates the need for multiple charging adaptors and provides a seamless charging experience.
President Biden’s “Reducing Inflation Act” plays a crucial role in incentivizing charging companies to adopt CCS plugs by offering federal subsidies. This funding will enable the construction of new high-speed chargers along major highways, making long-distance travel more convenient and feasible for electric vehicle owners.
Tesla’s extensive charging network, with over 2,000 supercharging stations and 21,000 supercharging piles in the US, gives the company a clear advantage in the growing electric vehicle market. With the additions of Ford, General Motors, and now Rivian, Tesla’s charging network is becoming the go-to choice for electric vehicle manufacturers.
The collaboration between Tesla, Ford, General Motors, and Rivian not only benefits the companies involved but also advances the overall goal of transitioning to sustainable transportation. The adoption of Tesla’s NACS charging standard by these major players sets a precedent for other states and charging companies to follow suit, ultimately creating a standardized and efficient electric vehicle charging network nationwide.
As the demand for electric vehicles continues to rise, having a reliable and widespread charging infrastructure is crucial. With Texas leading the way, Tesla’s NACS charging standard is making strides towards becoming the national charging standard, further solidifying Tesla’s position as a leader in the electric vehicle industry.
This is a crucial step forward in expanding the electric vehicle market. With Texas Government adopting Tesla’s charging standard and Rivian joining the game, it signifies an essential collaboration towards a cleaner and more sustainable future. Exciting times ahead!
It’s great to see Texas Government adopting Tesla’s charging standard and welcoming Rivian as an electric car rival. This move will encourage more EV adoption and provide a consistent charging infrastructure across the state. Exciting times for the future of sustainable transportation in Texas!