Tesla commits to opening up 7.5K of its chargers to other EVs, trading exclusivity for $$
Sharing the green juice… The White House announced that Tesla will open up at least 7.5K of its US charging stations to non-Tesla EVs by the end of next year. That’s a big first, because Tesla’s US chargers are compatible only with its own cars. The open chargers will include Tesla’s Superchargers (which can recharge cars in 30 minutes), plus “destination chargers” in places like hotels and restaurants. Why Tesla’s giving up its exclusivity edge:
- Gov’t cash: The Biden admin wants at least 500K publicly accessible EV chargers on US roads by 2030. By opening up its chargers, Tesla would qualify for a share of billions in federal funding offered for building a national network.
- Not just Elon: The White House also secured commitments from GM, Ford, ChargePoint, and others that operate charging networks. They stand to win funding for projects that meet federal requirements, like the Combined Charging System plug standard (which Tesla currently doesn’t use).
- FYI: Federally funded EV chargers won’t necessarily need to be powered by clean energy (they could use gas-fueled electricity).
Tesla-only zone… Charging networks are key to easing EV range anxiety and spurring adoption. With its US network of 17.7K fast chargers in 1.6K locations, Tesla runs the country’s second-largest charging network (after ChargePoint). Its Tesla-exclusive Supercharger stations are a big reason some EV buyers chose Tesla over other brands. But now it risks losing that competitive edge.
Losing the “Apple edge” may be worth it… Tesla has made its EV tech exclusive, similar to how Apple has boxed non-Apple users out of its ecosystem (think: connected software, specific device chargers, and green texts from non-iOS users). While it might lose a competitive advantage, Tesla stands to gain billions in gov’t funding and extra charging revenue from non-Tesla owners. And it would further its goal of accelerating the energy transition.