Mary Barra and Elon Musk may be fierce business rivals, but they sounded like old friends in conversation twitter This month, we talk about a deal that could help remove one of the biggest barriers to electric vehicle ownership: the shortage of chargers.
General Motors chief executive Barra had just agreed to follow in the footsteps of Ford Motor Company with charging technology developed by Musk’s automaker Tesla. The deal will allow GM and Ford customers to use some of Tesla’s fast chargers. Surveys show that the main reason people are hesitant to buy an electric vehicle is the fear of not being able to find a charger.
Barra spoke enthusiastically about Tesla’s “great” team. Musk said he was “honored” to work with her.
Behind these pleasant conversations, there was probably a strict calculation as a company. GM, Ford and numerous charging companies and equipment suppliers desperately need Tesla’s help and have agreed to work with them. In addition to selling more electric vehicles in the United States than all other automakers combined, Tesla operates the nation’s largest fast-charging network.
But the decision to work with Tesla carries significant risks for the rest of the auto industry, which relies on Musk’s fickle leader for critical technology. Tesla’s proprietary charging system, recently called the North American Charging Standard, is not overseen by an independent organization, unlike other technical standards. The company has said it intends to transfer control to such groups, but some competitors are skeptical about how much control Tesla will give up.
The deal also carries risks for Tesla. Exclusive access to the company’s charging stations, which have already seen long lines in some areas during busy travel hours, is a way for customers frustrated by having to wait behind a Ford or Chevrolet. Helps sell cars.
Conflicts over technical standards are part and parcel of any new technology. For businesses and consumers who bet on the wrong horse, the consequences can be disastrous. Ask anyone who bought or invested in a video recorder, cell phone, or digital music player that later became obsolete.
Cars are much more risky, costing tens of thousands of dollars, and replacing petrol cars with electric cars is key to addressing climate change.
Some industry insiders worry that corporate juggling over charging technology could discourage people from buying electric vehicles.
“It creates confusion,” said Oleg Rogvinov, North American chairman of the Charging Interface Initiative. The organization is a forum for manufacturers, equipment suppliers and charging companies that use Tesla’s main competitor to the standard, known as combined charging systems.
Rogvinov added that buyers “will probably wait until they know who wins.”
Most manufacturers other than Ford, GM, and Tesla produce cars with the European standard, CCS plugs. Charging networks operated by companies such as Electrify America and EVgo primarily offer CCS plugs.
Tesla’s plugs are lightweight and easy to handle, but they only fit the company’s vehicles. Under a deal with Ford and GM, Tesla plans to offer adapters early next year that will connect those manufacturers’ vehicles to its roughly 12,000 fast chargers in the United States. In 2025, Ford and GM will produce models designed to use Tesla’s plugs without adapters.
The combined influence of Tesla, GM and Ford could effectively force charging network operators to install Tesla plugs, effectively eliminating CCS plugs in the next few years, at least in North America. Small electric car company Rivian also announced a switch to Tesla plugs last week, and other manufacturers are considering doing the same.
“It’s important to us to make sure charging is really accessible and easy for our customers,” Rivian CEO RJ Scaringe said in an interview.
As Tesla plugs become more mainstream, people in cars designed to use CCS plugs will increasingly rely on adapters that limit the voltage they can handle and charge slower for safety reasons.
Tesla systems are known for being easy to use and reliable, but CCS chargers can be cumbersome. Dissatisfaction with existing charging networks is clearly one of the reasons Ford and GM decided to partner with Tesla.
“If other networks were more reliable, this would never have happened,” said Ben Rhodes, president of Battle Road Research, which follows the electric vehicle industry.
But one of the reasons Tesla’s system is doing so well is that Tesla designs and manufactures the entire system (car, software, charging hardware). As other automakers join Tesla’s network, Tesla loses its absolute dominance.
Operating a charger that can fuel dozens of vehicles from different manufacturers is very difficult.
“We’re charging 50 different models,” Kathy Zoe, chief executive of charging company EVgo, told an audience in New York earlier this month. Manufacturers sometimes don’t notify EVgo about changes in vehicle software, which leads to connectivity issues, she said. “And the charger is to blame,” she said.
When Tesla launched its first full-size car, the Model S, in 2012, charging stations were scarce, so it built a charging network. Tesla doesn’t disclose financials about the network, but analysts say the company probably makes money by charging people to buy its cars. Tesla did not respond to a request for comment.
According to the Department of Energy, Tesla has 19,700 charging ports at about 1,800 stations across the country, but 10,500 CCS ports at 5,300 stations. Only 12,000 Tesla chargers are available for Ford, GM and Rivian vehicles.
The decision by other automakers to partner with Tesla and generate revenue for competitors recognizes that Musk’s company has the most experience operating charging networks.
Musk has promised not to hurt GM and Ford customers, and other automakers believe him. “a GM customers will be treated the same as Tesla customers and that’s part of the deal,” General Motors executive Alan Wexler, who negotiated with Tesla, told reporters in New York earlier this month.
But it’s not clear who will ensure that the charging stations are safe and work as well with Tesla’s rivals as they do with Tesla itself, or who will adjudicate disputes between the company and other automakers. .
Tesla is in talks with the Charging Interface Initiative to designate its technology to play the same role it already does for CCS. But Musk has previously disparaged CCS as the commission’s flawed product, suggesting he may prefer another venue.
Competitors are betting that government regulators will step in if Tesla tries to establish a charging monopoly. Some are happy to see someone take the lead in removing a major roadblock to electric car sales.
“We’re really on this accelerated growth curve,” said Brendan Jones, chief executive of Blink Charging, which plans to introduce Tesla’s plug into the network. “This is going to really move the industry forward.”
