On Tuesday, Rivian (RIVN.O), an electric car company, announced that it would adopt Tesla’s (TSLA.O) charging standard, providing Rivian customers access to the largest U.S. charging network and boosting Tesla’s industry-standard bid.
Rivian stated its clients can use 12,000 Tesla Superchargers with adapters in the U.S. and Canada by spring 2024. In 2025, the business will standardize Tesla-style charging ports on its automobiles.
“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 highlighted Tesla’s latest victory. On Tuesday, BTC Power, Texas, and Hyundai Motor (005380. K.S.) announced plans to adopt Tesla’s standard to their electric chargers.
Tesla also signed agreements with General Motors (GM.N) and Ford (F.N.). Tesla profits from selling power to more E.V. drivers while other manufacturers use its charging network.
Rivian shares rose 5.5%. Tesla shares rose 5.3%, up 49% since the Ford transaction was disclosed in late May.
Rivian, maker of the R1T pickup vehicle and R1S SUV, will expand its fast-charging network. It planned 3,500 charging stations in 2021.
Scaringe said Rivian’s network would incorporate Tesla’s standard connectors, creating a large cash stream from Tesla customers using Rivian charges. “The network will become cash flow positive fairly quickly,” he said.
According to the U.S. Department of Energy, 60% of U.S. fast chargers are Tesla Superchargers.
While other electric car producers need consistent charging to soothe customers’ anxieties of being stranded, most have avoided creating networks due to the high cost and low returns.
“That’s why I think you’re going to see more and more partnerships,” said PwC Strategy& partner Akshay Singh.
Tesla’s recent transactions have helped displace the Combined Charging System (CCS), which President Joe Biden’s administration supported. The U.S. government is subsidizing E.V. charger deployment with $7.5 billion.
Tesla renamed its North American Charging Standard (NACS) network to qualify for federal funds.
“It’s great to see the industry coming together to adopt the North American Charging Standard,” said Tesla’s senior director of charging infrastructure, Rebecca Tinucci.
Since the Ford and G.M. announcements, CCS charger manufacturers and operators like ABB E-mobility North America, a unit of Swiss industrial firm ABB (ABBN.S), Tritium DCFC, EVgo, and FreeWire have raced to add NACS plugs to their charging stations.
Services and other income, including Supercharger fees, comprised under 10% of Tesla’s revenue last quarter. Charging revenue is not disclosed.
