Tesla agreed to open its charging network to non-Tesla electric vehicles after the US government said it would foot the bill.
Tesla CEO Elon Musk has promised to provide 7,500 open-access chargers in the US by the end of 2024, according to Biden administration officials. Taxpayer money will pay for converting existing Tesla chargers or building new ones to accommodate cars made by Ford, GM, Hyundai, Kia, Volvo, Volkswagen and other electric car makers.
The deal with Tesla is part of the Biden administration's $7.5 billion plan to fund 500,000 electric vehicle chargers across the United States, primarily along major highways at 50-mile intervals. The spending was approved by Congress in 2021. More details were announced Wednesday morning. Tesla's share of that pie was not disclosed.
Tesla's proprietary Supercharger network is by far the largest and most reliable in the world, and is considered a key competitive advantage for the automaker. However, by opening its network to outsiders, Tesla is positioned to increase its charging revenue and profit margins. (The company had said it would charge higher prices for non-Tesla charging if it opened the network.)
Currently, Tesla provides 28,000 charging ports at Supercharger stations in the US and 40,000 worldwide.
There are two common standards for EV charging in the US: Tesla's and everyone else's. The main reason for incompatibility is the nature of the charger plug that fits into the charging port of an electric car. The industry standard is known as CCS, and it is larger than Tesla's version with a different plug configuration. Exactly how Tesla will equip its Superchargers for open access has not been detailed.
The $7.5 billion will be divided among charger manufacturers, other automakers, retail chains, real estate developers and others who qualify for public subsidies for chargers. Until the administration's announcement Wednesday morning, it was an open question whether Tesla would qualify for any of the funds. Separately, Tesla could qualify for charger subsidies from state programs in California.
Whether or not Musk will meet his 2024 commitment is another question. Musk has a long and growing history of broken promises, missed deadlines, and broken agreements. They include his prediction that Tesla would already be operating a network of one million driverless robotaxis, his announcement that the company would have a pickup truck on the market in 2021, and his attempt to back out of the Twitter purchase.
A White House spokesperson said no contracts have been signed yet with Tesla. Management has at times had a testy relationship with the company after excluding it from an event held to promote electric vehicles.
Also unclear: the price non-Tesla customers will have to pay to buy electricity from a Supercharger. Tesla has been experimenting with open-access chargers in a dozen countries in Europe and Australia, where non-Tesla customers pay a higher price.
