Tesla’s Supercharger Revenue Go Up
Electric Vehicles have increased since they were first introduced and motorists are moving away from fuel-burning cars. Since 2021, J.D Power, an automotive research firm has regularly polled electric car owners on their experience at public charging stations. Most electric vehicle owners can now charge their vehicles at home. General Motors (GM.N) joined Ford (F.N) in agreeing to use
TeslaChargingStation
Electric Vehicles have increased since they were first introduced and motorists are moving away from fuel-burning cars. Since 2021, J.D Power, an automotive research firm has regularly polled electric car owners on their experience at public charging stations. Most electric vehicle owners can now charge their vehicles at home.
The deal between the automakers ensures that more than 60% of the country’s electric vehicles market can access Tesla’s North American Charging Standard (NACS), according to reports.
Friday the White House said electric vehicle charging stations using Tesla standard plugs would be eligible for billions of dollars in federal subsidies as long as they included the U.S. charging standard connection, CCS, as well.
“Tesla is hoping that CCS adapters will help it meet that requirement to qualify for federal tax dollars,” said Garrett Nelson, senior investment strategist at CFRA Research.
Any way you slice it, we think Tesla opening up its Supercharger network to competitors is a big negative for third-party charging companies.
According to J.D Power last year 15% of electric vehicle owners struggled to charge at a public charging station and 21% in the first three months of 2023. The failure rate is due to problems such as broken displays, software bugs, severed power cords, or gas-guzzling drivers hogging charging spots.
“It’s mind-boggling and really unfathomable for someone who is used to going into a gas station,” says Brent Gruber, the J.D. Power executive who oversees the survey.
After the partnership between Tesla, General Motors and Ford, shares of independent charging companies such as ChargePoing Holdings Inc, EVgo Inc and Blink Charging Co went down by 11% and 13%.
According to a Reuters report, Wedbush Securities estimated Ford and General Motors combined could add $3 billion to services electric vehicles charging revenue for Tesla over the next few years. Since announcing the charging tie-up with Forb on 25th May 2023, Tesla has added about $190 billion to its market value.
