Rivian, an electric vehicle manufacturer, has announced its partnership with Tesla by adopting Tesla’s charging standard. This collaboration will enable Rivian customers to access Tesla’s extensive network of over 12,000 Superchargers across the United States and Canada starting in spring 2024.
In addition, Rivian plans to introduce a Tesla-style charging port as a standard feature in its vehicles from 2025 onward. This move signifies Rivian’s commitment to enhancing the electric vehicle charging infrastructure and aligning with Tesla’s efforts to establish an industry-wide standard.
In recent weeks, Tesla has secured similar agreements with major automakers such as General Motors (GM) and Ford. These deals allow other automakers to access Tesla’s extensive charging network while Tesla benefits from the increased revenue generated by providing power to a larger group of electric vehicle drivers.
The news of Rivian adopting Tesla’s charging standard has positively impacted the market, as Rivian’s shares rose approximately 3% in premarket trading. Tesla’s shares, which have already seen a surge of over 40% since the announcement of its deal with Ford in late May, experienced a 0.5% increase.
The Importance of Charging Infrastructure for Automakers and the Dominance of Tesla in the Market
Reliable access to charging infrastructure is crucial for automakers to address customer concerns about potential battery depletion and the fear of being stranded. However, most automakers, apart from Tesla, have refrained from building their charging networks.
Analysts have highlighted that building and maintaining a charging network requires substantial investment, and the returns are still limited due to the relatively small number of electric vehicles on the road from automakers other than Tesla.
According to the U.S. Department of Energy, Tesla’s Superchargers currently represent around 60% of the total fast chargers available in the United States.
Tesla’s revenue from services and other sources, which includes fees from using Superchargers, accounted for just under 10% in the previous quarter. However, the company does not disclose charging revenue separately in its financial reports.
RJ Scaringe, the CEO of Rivian, expressed in a statement that the partnership with Tesla will enable buyers of Rivian’s electric pickup trucks and SUVs to take advantage of Tesla’s extensive Supercharger network.
Tesla has successfully gained traction over a rival charging standard called the Combined Charging System (CCS), which previously had support from the Biden administration. The administration has allocated $7.5 billion in funding to accelerate the deployment of EV chargers across the United States. To qualify for a portion of the federal funding, Tesla was required to open its charging network for use by other electric vehicles. Tesla’s charging standard, previously proprietary, became publicly accessible in November when the company unveiled the design and specifications, rebranding it as the North American Charging Standard (NACS).
Growing Adoption of Tesla’s North American Charging Standard (NACS) by Industry Players
Rebecca Tinucci, Tesla’s senior director of charging infrastructure, expressed her enthusiasm for the industry’s adoption of the NACS, stating, “It’s great to see the industry coming together to adopt the North American Charging Standard.”
Several CCS charger manufacturers and operators, including ABB E-mobility North America (a unit of ABB), Tritium DCFC, EVgo, and FreeWire, have swiftly announced the integration of NACS plugs into their charging stations following the announcements made by Ford and GM.
While Rivian plans to expand its charging network, which is set to comprise over 3,500 charging stations, the company has also embraced Tesla’s charging standard. It is worth noting that China, the world’s largest electric vehicle market, has it’s charging standard. At the same time, automakers in Japan, such as Toyota and Nissan, have promoted another measure known as CHAdeMo.
In addition to the rapid adoption of Tesla’s North American Charging Standard (NACS) by various manufacturers and operators in the United States, it is vital to note that NACS plugs are specifically designed to be compatible with Tesla vehicles. This compatibility allows electric vehicle owners to utilize both Tesla’s Supercharger network and the expanding network of charging stations equipped with NACS plugs.
The broader industry acceptance of NACS indicates a growing consensus towards a unified charging standard, benefiting electric vehicle drivers by providing increased accessibility and convenience. The collaboration among automakers, setting infrastructure providers, and industry stakeholders in adopting a common standard marks a significant step towards establishing a seamless charging experience for electric vehicle owners.
