Tesla realized from the beginning that fast, widespread charging was critical to building a shared Tesla ecosystem. So the company developed its own charging network from scratch.
It is reported that Tesla began to deploy super charging piles in 2012. In June 2018, the number of super charging piles of the company exceeded 10,000, on November 8, 2020, it exceeded 20,000, in May 2021, it exceeded 25,000, and on June 10, 2022, it exceeded 35,000. On November 22, it reached 40,000. This new milestone is only 5 months away from the previous one.
Currently, Tesla’s Supercharger network is the most extensive electric vehicle fast charging network in the world and is one of its most important advantages.According to the U.S. Department of Energy, Tesla Superchargers account for about 24% of all DC fast charging stations in the United States.
So far, the company’s Superchargers in the U.S. are still mainly for drivers of its own cars. But soon, this situation will change.
On Wednesday, Tesla announced that it would open some of its U.S. Superchargers to competitors. It’s an unprecedented move in the company’s history, not only to allow it to take part in $7.5 billion in government subsidies, but also to make it easier for consumers to charge their electric vehicles.
According to a statement issued by the U.S. government on Wednesday local time, by the end of 2024, Tesla will open at least 7,500 super charging stations to non-Tesla electric vehicles. Among them, 3500 new and existing super charging stations will be opened along the highway, and 4000 slower Level 2 charging stations will be opened in places such as hotels and restaurants.
Although Tesla’s move has resulted in Tesla owners no longer having exclusive access to the company’s super charging network, it is not a loss-making deal for Tesla.
1. Tesla owners still have an exclusive advantage
While at least 7,500 superchargers will be open to other non-Tesla brands by the end of next year, Tesla owners will still be the only ones with access to all of Tesla’s superchargers, while other manufacturers will only be able to use some of them .
Tesla offers its owners an exclusive advantage by offering a wide, fast and reliable EV charging network, and that exclusivity may also make potential EV buyers consider the Tesla brand when purchasing a vehicle.
2. Make Tesla eligible for government subsidies
As EV deliveries increase, so does consumer demand for charging stations. To this end, the US government is working hard to promote infrastructure construction.
It is reported that the construction of electric vehicle charging network is a core part of the US government’s plan to deal with climate change. Tesla wants a piece of the U.S. government’s $7.5 billion government subsidy program to expand electric vehicle charging networks across the U.S.
The U.S. government has previously stated thatUnless Tesla opens up its charging network to the outside world, the company will be excluded from the $7.5 billion government subsidy provided by the U.S. government.
Therefore, Tesla opening some of its U.S. Superchargers to all EVs would make it eligible for government subsidies.
In fact, Tesla CEO Elon Musk has long promised to open up its supercharging network to electric vehicles from other companies. He’s also been talking for years about opening up Tesla’s Supercharger network.
A few years ago, Musk said that Tesla would open up its supercharging network to non-Tesla electric vehicles, and automakers would only need to design compatible cars and bear the cost of developing the supercharging network. While some automakers planned to partner with Tesla, nothing came of it.
In July 2021, Musk said that the company’s super charging network will be opened to competitors later in 2021. But in the end, the plan didn’t materialize. However, the company has been moving toward that goal since then.
In November 2021, Tesla launched a pilot project in the Netherlands to allow non-Tesla electric vehicles to charge using its network of super charging stations. The pilot is limited to 10 Tesla Superchargers in the Netherlands, but Tesla hopes to eventually offer the service to Tesla vehicles and non-Tesla vehicles globally.
In early 2022, Tesla opened some charging stations in Norway and France to non-Tesla electric vehicles. Tesla has been rapidly expanding the program since then.
3. Enable Tesla to obtain new revenue streams
Tesla has said that servicing non-Tesla vehicles through its Superchargers will add a new revenue stream to its business, and that the additional funds could be used to build more Superchargers.
As Tesla opens up its supercharging stations to all electric vehicles, more car owners will use Tesla’s charging network, which will help improve the utilization rate of Tesla’s charging network. Of course, none of these situations come for free.
Drew Baglino, Tesla’s head of energy, once said: “Increasing the utilization of the charging network actually reduces our costs and allows us to lower the charging price for all customers, which makes the network more profitable. profitable and allow us to grow that network faster. That’s a good thing.”
However, Tesla’s opening up of its Supercharger network to other EVs could also lead to overcrowding of Superchargers in some major cities. In this regard, Musk said,To address this, Tesla may employ dynamic pricing. For example, if your electric car charges more slowly than a Tesla car, the company might raise the price.
Summarize
The opening of some U.S. superchargers may upset Tesla fans, who believe that superchargers are already relatively crowded, and opening them to other non-Tesla brands will only make the situation worse. However, that’s not always the case, as Superchargers aren’t always fully occupied in some areas of rural America.
Opening some U.S. Superchargers will not only help Tesla receive government subsidies, but will also help the company gain new revenue streams.
In addition, Tesla’s opening of supercharging stations to other electric vehicles can more directly help car owners alleviate the double problem of finding available charging stations and spending a lot of time charging, which will help them eliminate the concerns of “not enough charging stations”, which may Significantly contribute to the growth of the emerging electric vehicle market.
In addition, Tesla’s opening of its charging network to other brands of electric vehicles will also help the US government accelerate its goal of “building 500,000 electric vehicle charging piles”.
If Tesla does not make its charging network compatible with other brands of electric vehicles, it may allow other electric vehicle charging network builders including Electrify America, ChargePoint, Blink, EVgo to seize most of the market.