Tesla’s Charging Infrastructure: Exclusivity vs. Government Subsidies

Tesla may lose out on a $7.5bn government subsidy for EV charging infrastructure unless it opens up its proprietary charging network to other EVs.

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The proposed funding is part of US President Joe Biden’s efforts to create a comprehensive EV charging network across America.

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The government-funded charging infrastructure must use the Combined Charging System (CCS) standard that includes all EV brands.

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Tesla currently operates its own charging system with over 40,000 charging stations that are exclusive to Tesla owners.

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Opening up Tesla’s charging stations to other EVs could create a new revenue stream for the company but could also undermine its exclusivity appeal.

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The Department of Transportation aims to fill the US with 500,000 EV chargers in the coming years and convert 50% of all new vehicle sales to electric by 2030.

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Tesla must open up its Supercharger network to accommodate any EV that uses the CCS connector to qualify for the government subsidy.

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Tesla's Supercharger network is the best in the US, with more Level 3 EV chargers than any other network.

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All companies that can help speed up the installation of EV charging stations with CCS connectors, like EVgo, Electrify America, and ChargePoint, among others, will be eligible to receive government funds.

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