When you experience driving a Tesla for the first time, there’s a moment where everything clicks. I had mine in Detroit, cruising around in a Model S about seven years ago. That’s when I felt the incredible speed, comparable to a supercar, without the usual engine noise. The controls were like nothing I had seen before, with a giant touch screen replacing the traditional array of dials and buttons. The Autopilot system made long highway drives much more bearable. Back in 2012, when the Model S was introduced, most other electric cars were impractical and felt like souped-up golf carts. The Model S was different—it offered sports-car acceleration without compromising on luxury.
But that “Tesla moment” is not exclusive to Tesla anymore. Hyundai, Ford, Mercedes, and countless other car manufacturers have followed Tesla’s playbook and are now producing electric vehicles that have that same wow factor. Tesla’s cars are no longer as unique as they used to be. Their car lineup is becoming outdated, relying on heavy price cuts instead of innovation, while their electric competitors are surpassing them. Tesla’s self-driving technology is facing lawsuits, recalls, and even a criminal investigation. The Washington Post recently linked Tesla’s Autopilot system to 17 deaths. Even Tesla’s top investors are urging CEO Elon Musk to focus on improving the company instead of tweeting. However, Tesla still has one unbeatable advantage—its charging network.
Ford and General Motors recently announced that their electric vehicles will be compatible with Tesla’s charging ports. This means that Tesla’s plug, once exclusive to its cars, could become the standard for electric driving. Tesla, Ford, and GM make up about 70% of all EVs sold in the US. If other major car companies join in, the current industry standard, Combined Charging System (CCS), could become obsolete. Elon Musk has already invited Toyota to adopt Tesla’s charging standard. Right now, the success of the EV revolution depends heavily on Tesla.
Even Tesla’s harshest critics admit that the company got its Supercharger network right. With over 17,000 locations in North America alone, it’s the largest and most dependable public charging network in the world. Other charging stations, usually run by third-party companies, are notorious for their unreliable service and complicated payment systems. Tesla’s competitors want to be part of this network because it helps overcome one of the main hurdles to EV adoption—charging anxiety. Ford and GM also stand to save millions by partnering with Tesla instead of building their own charging stations.
The introduction of Tesla’s charging standard may spell the end for other types of plugs. Standardization makes the switch to EVs much easier for drivers. Having to deal with multiple companies and apps for charging is frustrating. Tesla’s format offers a simple, readily available charging solution. However, there is currently a discrepancy between the $7.5 billion federal funding allocated to CCS plugs and the shift towards Tesla’s plug. Charging companies can still receive funding if they include at least one CCS plug, but they are free to include Tesla plugs as well.
In the short term, Tesla stands to benefit financially from Ford and GM drivers using its Superchargers. Tesla’s current lineup of vehicles is not as strong as it used to be, so the company relies on discounts and the expansion of its charging network to attract customers. The revenue trade-off between adding Supercharger users and losing potential car buyers remains unclear. Elon Musk believes that this move will benefit the industry and encourage wider EV adoption, but its financial impact is yet to be seen.
If Tesla’s plug becomes the industry standard in the US, the company will continue to dominate the EV charging market for years to come. Legacy car companies have traditionally focused solely on building cars and relied on independent dealers and gas stations for sales and refueling. Tesla, on the other hand, handles everything in-house. Elon Musk’s goal has always been to become an energy retailer, selling not only cars but also solar panels, home batteries, and more. Ford and GM outsourcing their vehicle charging to Tesla brings that vision one step closer to reality.
However, there are concerns about having Musk and Tesla in charge of the future of transportation. Musk’s unpredictable behavior and controlling management style raise doubts about whether he is the right person to lead the way. But as more people rely on Tesla’s charging network, they may have no other choice but to accept it.
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