Rivian (RIVN.O), an electric car startup, adopted Tesla’s (TSLA.O) charging standard on Tuesday, giving Rivian customers access to the largest U.S. charging network and strengthening Tesla’s industry-standard bid.
By spring 2024, Rivian customers can access 12,000 Tesla Superchargers with adapters in the U.S. and Canada. Tesla-style charging outlets will be standard on its cars by 2025.
“We prefer the Tesla connector, which is more compact, and we also see it as an opportunity to leverage the charging infrastructure that they built,” Rivian CEO RJ Scaringe told Reuters.
Reuters reported Tesla’s latest win. On Tuesday, BTC Power, Texas, and Hyundai Motor (005380. K.S.) announced intentions to implement Tesla’s electric charger standard.
Tesla also made deals with Ford and General Motors (GM.N). Tesla earns from more E.V. drivers using its charging network.
Rivian climbed 5.5%. Tesla shares climbed 5.3%, 49% since the Ford transaction was announced in late May.
Rivian will expand its fast-charging network. In 2021, it projected 3,500 charging stations.
Scaringe claimed Rivian’s network would use Tesla’s standard connectors, generating much revenue from Tesla consumers. “The network will become cash flow positive fairly quickly,” he said.
According to the DOE, 60% of U.S. fast chargers are Tesla Superchargers.
Most electric car manufacturers avoid building networks because of the expensive cost and limited returns, even though customers need consistent charging to avoid being stranded.
“That’s why I think you’re going to see more and more partnerships,” said PwC Strategy& partner Akshay Singh.
Tesla’s recent deals have displaced President Joe Biden’s CCS. E.V. charger deployment is subsidized by $7.5 billion by the U.S.
Tesla renamed its North American Charging Standard (NACS) network for federal funding.
“It’s great to see the industry coming together to adopt the North American Charging Standard,” Tesla’s senior director of charging infrastructure Rebecca Tinucci said.
Since the Ford and G.M. announcements, CCS charger makers and operators like ABB E-mobility North America, a unit of Swiss industrial business ABB (ABBN.S), Tritium DCFC, EVgo, and FreeWire have raced to add NACS plugs to their charging stations.
Last quarter, Tesla’s services and other revenue, including Supercharger fees, was under 10%. Charging revenue is unknown.
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