The Benefits and Risks Of Tesla’s Charging Network Domination

Over the past year, multiple carmakers including Ford, Mercedes-Benz, General Motors, Nissan, Toyota, Volvo, Honda, Hyundai, BMW, Jaguar, and Rivian have all announced they will be adopting Tesla’s North American Charging Standard (NACS) charging infrastructure within the next few years. In fact, Tesla’s dominance in EV fast charging could give Elon Musk’s company considerable influence over the broader electric car ecosystem. 

For the record, NACS is the connector used in Tesla’s Supercharger network, which accounts for at least 60% of available fast charging ports across the U.S. Lots of charging access will be a good thing for EV buyers, at least in the short term. 

“There are many aspects to interoperability (the ability of computer systems or software to exchange and make use of information) and there is still a lot of work to be done to ensure this works as intended, but this will dramatically expand access to charging in a way that is potentially game-changing,” said Al Gore III, who heads ZETA, an EV industry trade group that represents Tesla and other stakeholders.

Risks? Yes, there are risks in relying so heavily on a car company that also controls the refueling process or should we say the charging process — imagine ExxonMobil also being a leading carmaker.

McKinsey analyst Shivika Sahdev recently wrote in Barron’s that the rise of NACS raises questions for non-Tesla drivers, depending on how much control Tesla has over its usage. “[If] one player controls the standard, the result could be an unhealthy dominance over future evolutions of the standard, pricing, access and data, to name a few.’

Although competitors are emerging in fast charging, Sahdev says that “it’s very likely” Tesla will “hold the largest share of the market” for years to come.

OUR THOUGHTS

What Al Gore III said is true—this improved access to the industry’s best and quickest charging network will be game-changing. Indeed, access to Tesla’s Superchargers is expected to stimulate sales of EVs nationwide and buyers see one major EV issue—that of efficient fast charger access—being alleviated. But just how regulators control Tesla’s dominance of and influence over the standard is a critical issue we’ll be watching.

More Articles for You

Bertone’s Swan Song Design — The ‘Nuccio’ Goes Under The Hammer

Over a century of outstanding design came to an end in 2015 when Bertone, the legendary Italian coachbuilder behind automotive …

EVs Are Starting To Lose Their Appeal To New Drivers

According to a Shell Plc survey, electric vehicles (EVs) are becoming less appealing to prospective drivers in Western countries even …

It’s Cheaper Than A Tesla, Better Looking Than A Tesla And Has over 200K Bookings Already

Xiaomi is well-known in China and abroad for its range of hair dryers and smart air-conditioners but the influential corporation …

Iconic British Sports Car Company Reborn After Shutting Down 20 Years Ago

A well-known British sports car brand, thought to be extinct, has just been resurrected. Marcos Motor Company Ltd, which owns …

New Mercedes-Benz G580 Electric Debuts In Malaysia

Mercedes-Benz Malaysia (MBM) has unveiled the electric version of the Mercedes-Benz G580, featuring EQ Technology. If you want the G580 …

Design Legend Ian Callum Creates MINI Masterpiece For David Gandy

You hear the name Ian Callum and many car nuts immediately think of Jaguar, where Callum was design director for …