What’s Next For Tesla Superchargers After Elon Musk Laid Off The Entire Team

CNBC
13 May 202421:26

Summary

TLDRTesla's Supercharger network, once considered a significant competitive advantage and a key driver in electric vehicle (EV) adoption, has faced an unexpected restructuring. Despite leading the fast-charging market with a 60% share, Tesla laid off its entire supercharging team, raising concerns about the future of EV charging infrastructure. The decision has left the industry puzzled, as the Supercharger network was seen as one of Tesla's crown jewels. While Tesla plans to continue expanding the network at a slower pace, the move has prompted questions about the company's next steps. The Supercharger network's growth has been crucial for Tesla's brand and customer satisfaction, and its vertical integration has allowed for a seamless charging experience. However, the layoffs coincide with Tesla's broader financial challenges, including slumping sales and increased competition. As the EV market evolves, the impact of this strategic shift on Tesla's position and the charging infrastructure landscape remains to be seen.

Takeaways

  • 🚗 Tesla's Supercharger network is considered a significant competitive advantage and a key factor in driving EV adoption.
  • 🔌 The Supercharger network is known for its reliability, availability, and seamless user experience, setting the gold standard in EV charging.
  • 📉 Despite its lead, Tesla laid off its entire supercharging team, which has raised concerns about the future of the network and its impact on the EV market.
  • 🛠️ Tesla's restructuring and the layoffs were part of a broader response to slumping sales and increased competition, with the company's stock down 32% for the year.
  • 🌐 Tesla's market share in the U.S. is greater than all other networks combined, accounting for 58% of all DC fast chargers deployed in the previous year.
  • 🔌 Tesla has been opening its charging network to other vehicle manufacturers, with Ford and General Motors being granted access to thousands of Superchargers.
  • 🔋 Tesla's charging port, the North American Charging Standard (NACS), is becoming the standard for all EVs in North America, facilitating easier integration into the Supercharger network.
  • 💰 Analysts predicted that Tesla's charging business could become a major profit driver, with global public charging revenue expected to rise significantly by 2030.
  • 🛑 Elon Musk stated that Tesla still plans to grow the Supercharger network, but at a slower pace, which is crucial for the brand's identity and the car business's success.
  • 🏗️ Tesla has managed to cut its costs considerably for deploying Superchargers, often having lower costs than alternatives, and has been successful in securing government funding for expansion.
  • 🤝 The automotive industry and government funding have shown widespread support for Tesla's charging infrastructure, but the company's recent decision to dismantle its Supercharging team has introduced uncertainty.

Q & A

  • What is Tesla's Supercharger network considered to be in the context of EV charging?

    -Tesla's Supercharger network is considered the gold standard in reliability, availability, and seamlessness for EV charging.

  • Why was Tesla's decision to lay off its entire supercharging team surprising to many?

    -The decision was surprising because Tesla had a significant lead in the fast-charging market with a 60% market share and the Supercharger network was a critical factor in driving the adoption of EVs.

  • What was the broader context behind Tesla's restructuring that led to the layoffs?

    -The layoffs were part of a broader restructuring at Tesla as the company faced slumping sales and increased competition, with Tesla's stock down 32% for the year.

  • How has Tesla's Supercharger network contributed to the adoption of electric vehicles?

    -Tesla's Supercharger network has been critical in driving the adoption of EVs by providing a great charging experience, which is considered the linchpin to electric vehicle adoption.

  • What is the significance of Tesla opening its charging network to other vehicle manufacturers?

    -Opening its network allows Tesla to expand its market reach and tap into additional revenue streams, as well as encouraging more drivers to transition to an emission-free future.

  • What is the North American Charging Standard (NACS) and why is it important?

    -The North American Charging Standard (NACS), also known as the J3400 standard, is a charging port standard that is becoming the norm in North America. It allows for easier integration of different EVs into the supercharging network, promoting standardization and interoperability.

  • How does Tesla's approach to infrastructure deployment differ from other charging networks?

    -Tesla has a laser-like focus on deploying infrastructure where it makes the most sense, leveraging its knowledge of customers and chargers to optimize site selection and usage.

  • What are the potential financial implications of Tesla's decision to halt the expansion of its Supercharger network?

    -The decision could impact Tesla's potential to become a major profit driver in the charging business, as global public charging revenue is projected to rise significantly by 2030.

  • How does Tesla's dynamic pricing model for Supercharging work?

    -Tesla's dynamic pricing model factors in electricity costs, charging power output, and peak or off-peak hours to optimize pricing and profitability.

  • What role does government funding play in the development of Tesla's Supercharger network?

    -Government funding, particularly through the National Electric Vehicle Infrastructure Formula Program, has provided significant support for Tesla to expand its Supercharger network, with Tesla securing a substantial amount of funding for new sites.

  • What challenges might arise as other EV manufacturers start using Tesla's Supercharger network?

    -Challenges include potential congestion at charging sites, the need for longer cables to accommodate different car models, and the possibility of increased wait times for charging.

  • How does Tesla's decision to lay off its Supercharging team affect consumer and industry confidence?

    -The decision raises questions about the future of Tesla's charging network, potentially impacting consumer confidence in Tesla as a brand and the industry's confidence in the availability and reliability of EV charging infrastructure.

Outlines

00:00

🚗 Tesla's Supercharger Dominance and Recent Layoffs

Tesla's Supercharger network is recognized as the leading fast-charging network in North America and a significant competitive advantage for the EV manufacturer. Known for its reliability, availability, and seamless user experience, Tesla holds nearly a 60% market share in the fast-charging sector. However, a recent decision by Elon Musk to lay off the entire supercharging team, including top executives, has raised questions about the network's future. This restructuring is part of Tesla's response to declining sales and increased competition, and the move has been described as baffling given Tesla's leading position and the importance of the Supercharger network to EV adoption. Despite the layoffs, Tesla has announced plans to continue expanding the network, albeit at a slower pace.

05:03

🔌 The Vertical Integration and Customer Experience of Tesla's Superchargers

Tesla's Supercharger network benefits from the company's vertical integration, with Tesla designing both the cars and the Superchargers, as well as the respective software. This integration ensures a seamless user experience. Tesla owners rely heavily on the Supercharger network, which is often preferred over third-party charging services like Electrify America or EVgo. The network's reliability and well-maintained facilities are a significant draw for Tesla customers. Tesla's approach to charging includes benefits such as battery preconditioning and congestion awareness, and its scale is notable, with an average of 8 to 10 ports per site. Despite the layoffs, Tesla continues to prioritize the expansion of existing locations and has managed to reduce its deployment costs significantly.

10:05

💰 Financial and Governmental Support for EV Charging Infrastructure

The construction and maintenance of EV charging stations are expensive endeavors, with costs varying widely depending on the type of charging and power infrastructure. However, Tesla has managed to reduce its costs considerably, often being 20% to 70% lower than alternatives. The company has also benefited from government funding, such as the National Electric Vehicle Infrastructure Formula Program, which has provided insights into Tesla's costs compared to competitors. Tesla's charging business, which uses dynamic pricing, is believed to be profitable and has been identified as a significant profit generator for the company. The U.S. government's infrastructure bill has also spurred the development of EV charging infrastructure, aiming to standardize charging experience and improve uptime requirements.

15:06

🔌 Expansion and Standardization of Tesla's Supercharger Network

Tesla has been expanding its Supercharger network and has begun allowing non-Tesla EV owners to charge at its sites, starting with a pilot program in the Netherlands and later expanding throughout Europe and the U.S. This move grants Tesla access to federal funds and is part of a nationwide effort to build a charging network. Tesla's decision to open its network has been well-received, with companies like Ford and GM signing deals to use Tesla's Superchargers. However, this expansion has also presented challenges, such as the need for longer cables and the potential for increased congestion at charging sites. The adoption of the North American Charging Standard (NACS) by other automakers is expected to accelerate the adoption of electric vehicles and benefit the overall market.

20:07

🛠️ The Impact of Tesla's Supercharger Team Layoffs on the EV Charging Industry

The sudden layoffs of Tesla's Supercharging team have left stakeholders, including customers and contractors, in a state of uncertainty. Tesla customers rely on the extensive Supercharger network as a key selling point, and the decision to halt expansion raises concerns about the future of charging infrastructure. Tesla's maintenance team remains intact, and the company will continue to support existing sites. However, the lack of an internal team may lead to outsourcing the development of new sites. The decision also places more responsibility on the EV charging industry, which may not be prepared to take on the Supercharger network's mantle. Tesla's policy team, which worked closely with the charging team, was adept at navigating infrastructure rollout challenges, and the loss of this expertise could impact future development. Meanwhile, competition in the charging space is growing, with companies like Ionna, Mercedes, Rivian, and Shell Recharge entering the market.

🌐 The Future of Charging Infrastructure and Tesla's Strategic Move

As more charging infrastructure is built, the experience for EV users is expected to improve with standardized software, communications, payment processing, and plugs. The industry is anticipating consolidation, and opinions are divided on whether Elon Musk's decision to disband the Supercharger team is a strategic masterstroke or a misstep. Tesla's leadership in North America has been crucial, and the company's strategy shift leaves questions about the future direction of charging infrastructure. While some view Musk's move as a complex strategic play, the true impact of this change will only be understood with time as the EV market and charging infrastructure continue to evolve.

Mindmap

Keywords

💡Supercharger network

The Tesla Supercharger network is a fast-charging infrastructure designed specifically for Tesla electric vehicles. It is considered a significant competitive advantage for Tesla, providing reliable and seamless charging experiences for its customers. In the script, it is mentioned as the 'gold standard' in EV charging, highlighting its importance to Tesla's market position and customer satisfaction.

💡Market share

Market share refers to the percentage of the total market that a company controls. Tesla's Supercharger network is noted to have a dominant market share in the fast-charging market, leading by almost 60%. This dominance is crucial as it indicates Tesla's strong presence and influence in the EV charging sector, as depicted in the script where it states, 'In the fast charging market, it's just Tesla leading the way by almost a 60% market share.'

💡Layoffs

Layoffs involve the termination of employment for a group of workers, usually due to economic conditions or company restructuring. In the context of the script, Elon Musk's decision to lay off Tesla's entire supercharging team, including about 500 people and top executives, signifies a major shift in the company's strategy and raises questions about the future of Tesla's charging infrastructure.

💡Restructuring

Restructuring refers to the process of altering a company's organizational structure or operations to improve efficiency, productivity, or to respond to market changes. Tesla is undergoing a broader restructuring as mentioned in the script, which includes the surprising move of laying off the supercharging team. This restructuring is a response to slumping sales and increased competition, indicating a strategic shift within the company.

💡EV adoption

EV adoption pertains to the acceptance and use of electric vehicles by the public. The script emphasizes that a great charging experience is the 'linchpin to electric vehicle adoption,' which is why Tesla's Supercharger network was critical in driving the adoption of EVs. The network's success in providing a seamless charging experience has been a key factor in convincing consumers to switch to electric vehicles.

💡Vertical integration

Vertical integration is a business strategy where a company owns or controls several stages of the production or distribution process. Tesla's approach to both car and software design, as well as the Superchargers and their software, is an example of vertical integration. This strategy allows Tesla to create a seamless user experience, as mentioned in the script: 'This vertical integration has allowed Tesla to create a seamless end-to-end user experience when owners charge their cars.'

💡Destination chargers

Destination chargers are lower power charging points installed at locations such as hotels and apartments where people are likely to park their cars for extended periods. Tesla has widely deployed around 40,000 destination chargers, complementing its Supercharger network. These chargers are part of Tesla's broader charging infrastructure strategy, as noted in the script, to provide convenient charging options for its customers.

💡V3 Superchargers

V3 Superchargers are a newer generation of Tesla's charging technology, introduced in 2019, that provide up to 250kW of power. They represent an advancement in charging speed and efficiency, allowing Tesla vehicles to charge more quickly than with previous technology. The script mentions the V3 Superchargers as part of Tesla's majority charging network infrastructure, emphasizing their role in maintaining Tesla's lead in fast charging.

💡Dynamic pricing

Dynamic pricing is a pricing strategy where prices fluctuate based on factors such as demand, time of day, and other market conditions. Tesla uses dynamic pricing for its Superchargers, factoring in electricity costs, charging power output, and peak or off-peak hours. This approach is mentioned in the script as a method to manage costs and optimize profitability, aiming for a gross margin of about 30%.

💡Federal funding

Federal funding refers to financial support provided by the national government for various programs and initiatives. In the context of the script, the U.S. government's National Electric Vehicle Infrastructure Formula Program is providing funding to support the development of EV charging infrastructure, including Tesla's Supercharger network. This funding is part of a broader effort to grow the national charging network and promote the adoption of electric vehicles.

💡Standardization

Standardization is the process of making technical or quality aspects uniform, which is crucial for compatibility and interoperability. The script discusses the standardization of charging ports, with Tesla's North American Charging Standard (NACS) becoming the standard for all EVs in North America. This move is expected to facilitate easier integration of different EV models into the supercharging network and is seen as a positive development for the industry.

Highlights

Tesla's Supercharging network is the largest fast-charging network in North America and a major competitive advantage for the company.

The Supercharger network is considered the gold standard in reliability, availability, and seamlessness for EV charging.

Tesla holds nearly a 60% market share in the fast-charging market.

Elon Musk laid off Tesla's entire supercharging team, including about 500 people and top executives, raising questions about the network's future.

The decision to dismantle the Supercharging team was surprising given Tesla's lead in EV charging and the network's importance to customer satisfaction.

The layoffs were part of a broader restructuring at Tesla due to slumping sales and increased competition.

Tesla's Supercharger network was critical in driving the adoption of electric vehicles.

Tesla has deployed around 40,000 destination chargers at hotels, apartments and other locations where people park for longer periods.

Tesla's V3 Superchargers, introduced in 2019, provide up to 250kW of power.

Tesla's vertical integration allows for a seamless end-to-end user experience when charging.

Tesla's Supercharger network is highly regarded for its reliability and well-maintained facilities.

Tesla recently opened up its Supercharger network to other vehicle manufacturers, including Ford and General Motors.

Tesla's charging port, the North American Charging Standard (NACS), is becoming the standard on all EVs in North America.

Analysts believe Tesla's charging business was set to become a major profit driver for the company, with global public charging revenue projected to reach $127 billion by 2030.

Tesla has managed to significantly cut its costs for deploying Superchargers, with costs often 20-70% lower than alternatives.

Tesla has received around $12 million in federal funding so far for building out its charging network.

The Biden administration aims to grow the national charging network to 500,000 stations by 2030.

Tesla's decision to gut the Supercharger team raises concerns about the future expansion and reliability of the network.

The move could place more responsibility on an industry that may not be ready to take on the Supercharger network's mantle.

Tesla faces growing competition in the charging space from companies like Ionity, Mercedes, Rivian, and Shell Recharge.

Experts predict that increased infrastructure buildout across the board will improve the charging experience for all EV users.

Transcripts

00:04

Tesla's global Supercharging network is the largest fast

00:07

charging network in North America, and it's often cited

00:10

as the EV makers biggest competitive advantage.

00:13

Tesla's Supercharger network, in part because they could

00:16

design all the parts of it, is the gold standard in

00:20

reliability and availability, and in seamlessness for EV

00:24

charging.

00:24

In the fast charging market, it's just Tesla leading the

00:28

way by almost a 60% market share.

00:32

But at the end of April, Elon Musk let go of Tesla's entire

00:36

supercharging team, laying off about 500 people,

00:39

including top executives.

00:41

Now its future is in question.

00:44

This decision has rocked the foundation of what everybody

00:47

believes about EV charging.

00:49

It's baffling.

00:50

Because they they do have such a lead and such a head start

00:52

and such a easy way to deploy, and the satisfaction

00:55

behind the user experience to have the rug pulled out from

00:58

under this, it is really confusing.

01:00

I would describe the Supercharger network as one of

01:02

the crown jewels of Tesla, and instead of doing victory

01:06

laps and building the Supercharger network and

01:09

reaping the benefits of this, this asset, suddenly there's

01:12

this pause.

01:14

The layoffs were part of a broader restructuring

01:16

happening at Tesla, as the company reckons with slumping

01:18

sales and increased competition.

01:20

Tesla's stock is down 32% for the year so far.

01:24

But cutting the Supercharging team was especially surprising

01:27

to many. The supercharging network was critical in

01:29

driving the adoption of EVs.

01:31

Tesla's now former senior director of EV charging,

01:34

Rebecca Tinucci, spoke about the success of the network at

01:37

last year's Investor Day.

01:39

At Tesla charging we have understood since day one that

01:42

a great charging experience is the linchpin to electric

01:45

vehicle adoption. We've spent ten years building charging

01:48

infrastructure when basically no one else in the industry

01:50

would do it. Those ten years have afforded us the

01:53

opportunity to get pretty good at charging.

01:55

When we're talking about electric cars, what we're

01:57

asking the public to buy into isn't really a new car.

01:59

It is a new fuel source.

02:01

Tesla was the gold standard in making that simple, and

02:04

they still are, arguably.

02:06

And so to see that their ecosystem is being somewhat

02:09

dismantled, it begs to question what is the next step

02:12

for Tesla as a company?

02:14

In the U.S., Tesla's market share and growth are greater

02:17

than all other networks combined, accounting for 58%

02:21

of all DC fast chargers deployed last year.

02:24

They also just recently announced that they're opening

02:27

up their charging network to other vehicle manufacturers.

02:30

Ford owners will be granted access to thousands of Tesla

02:33

Superchargers across the United States and Canada.

02:36

General Motors EVs will have access to about 12,000 Tesla

02:41

Superchargers. Yet another automaker saying, you know

02:44

what? Let's just go with Tesla.

02:47

Tesla's charging port, the North American Charging

02:49

Standard, or NACS, is now even becoming the standard in

02:53

North America on all EVs so that Ford, GM, and others can

02:57

more easily integrate into the super charging network.

03:00

The whole intent of the industry switching to this

03:01

connector type was for the growth and opportunity of what

03:04

it would mean for standardization around their

03:06

plug. That raises a lot of questions for consumer

03:09

confidence as well as industry confidence.

03:12

Analysts believe Tesla's charging business was set to

03:14

become a major profit driver for the company.

03:17

It is estimated that global public charging revenue will

03:20

rise to $127 billion by 2030, with Tesla thought to own $7.4

03:26

billion of that, Elon Musk said Tesla still plans to grow

03:30

the supercharger network just at a slower pace.

03:33

You can't have a Tesla the auto brand without Tesla the

03:36

Supercharger network permanently stopping the

03:39

growth of the Supercharger network is suicide for the car

03:41

business. They go hand in hand, in my opinion.

03:57

Tesla launched the Supercharging tetwork on

03:59

September 24th, 2012, with six sites in California.

04:03

Coinciding with the Model S entering production.

04:06

The network was free to use as an incentive for early

04:08

adopters.

04:10

You buy a car, you get our charging, you have a full

04:12

package. It's basically an Apple ecosystem effect.

04:16

Everything works together.

04:18

It's very nicely integrated.

04:20

By mid 2013, Tesla started building Superchargers in high

04:23

traffic corridors in Europe and Asia.

04:26

At the start of 2024, Tesla announced it had 6,000

04:29

charging stations with around 55,000 Superchargers.

04:33

Alongside its Superchargers, Tesla has widely deployed

04:36

around 40,000 destination chargers, lower power plugs

04:40

installed at hotels, apartments and other spaces

04:42

where people park for longer periods of time.

04:45

That type of infrastructure is not terribly expensive.

04:50

The majority of Tesla's charging network

04:52

infrastructure features its V3 Superchargers, which were

04:55

introduced in 2019 and provide up to 250kW.

04:59

It recently started rolling out its V4 Superchargers,

05:02

which are capable of delivering even more power in

05:05

Europe last year and has brought a handful online in

05:08

the U.S. this year.

05:09

They designed the cars and the software that they ran on, but

05:13

it also designed the Superchargers and the software

05:15

that ran them. And those two sets of software talked very

05:18

closely to each other.

05:20

This vertical integration has allowed Tesla to create a

05:23

seamless end to end user experience when owners charge

05:26

their cars.

05:27

I solely rely on Tesla Supercharging stations, and I

05:30

have used multiple third party companies such as

05:34

Electrify America, EVgo, ChargePoint, and they just do

05:38

not compare to Tesla's Supercharger network.

05:40

I feel sorry for people that don't drive a Tesla that have

05:43

an electric car, because Tesla does maintain their

05:45

facilities beautifully.

05:47

There's nothing else like it, right here in Santa Monica,

05:50

we've got a restroom and a place where you can get food.

05:53

They attracted customers with these sexy looking cars, but

05:57

the repeat buyers and the cult like following, that's a

06:01

result of the Tesla experience.

06:02

And a lot of the Tesla experience has to do with with

06:05

the Supercharger network, just the ubiquity of it and

06:07

the reliability of it.

06:09

For other charging providers, emulating this experience is

06:12

difficult, since they're having to design for multiple

06:14

car models with varying software and charging

06:16

protocols.

06:17

With Electrify America and with all the other networks,

06:21

to a greater or lesser extent, there is a certain

06:24

amount of discontent among EV drivers about reliability.

06:28

So there's a lot more software now that's being

06:31

added into diagnosed problems to let them know what's going

06:33

on.

06:34

With Tesla it'll tell you how many stalls there are, how

06:36

many are in use.

06:38

Whereas I've used Electrify America, I'll open up the app

06:41

and it says that it is available and I'll pull up and

06:44

someone's in there. The stall may actually be out of

06:47

service, not even functional.

06:49

Tesla also built in other benefits to its system, such

06:52

as battery preconditioning and congestion awareness.

06:55

Other electric vehicle manufacturers, well some of

06:57

them, have vehicle side data.

07:00

Other infrastructure providers have site data, but

07:03

at Tesla we have both.

07:04

And perhaps most important - scale.

07:07

Other charging networks, they would have a maximum of four

07:09

charging ports at a site.

07:11

Tesla, it's between 8 to 10 ports per site on average.

07:14

Musk said that expansion of existing locations will remain

07:17

a priority. Tesla installed around 12,000 chargers a year

07:21

for the last few years globally.

07:22

When it comes to figuring out where to put the

07:24

infrastructure, Tesla does it better than anybody else.

07:27

They know everything about their customers.

07:29

They know everything about their chargers.

07:31

That gives them laser like focus on figuring out where

07:35

does it make sense for them to put their infrastructure.

07:38

So why did Tesla gut the Supercharger team then?

07:42

Perhaps it just didn't make sense financially for the

07:44

company.

07:47

In the early days, Tesla's Supercharging network was

07:49

predicted to lose money.

07:51

The construction and maintenance of EV charging

07:53

stations can be expensive, with prices varying widely

07:56

depending on the type of charging and power

07:58

infrastructure being built.

08:00

Installing EV charging is really expensive today.

08:02

We're not at mass market yet in terms of costs.

08:06

We are still seeing around 250,000 being the benchmark

08:10

for high power.

08:11

Charging, actually the main cost, believe it or not, is

08:14

not the charger itself. The main cost is what you need to

08:18

bring from the grid.

08:19

You have to do site prep, you have to trench power lines and

08:22

more importantly, the electric utility either has to

08:27

have high voltage power near the site or they have to bring

08:31

it in.

08:32

However, Tesla did say that it has managed to cut its costs

08:35

considerably.

08:36

We have the industry's lowest deployment costs.

08:38

Our costs are often 20%, if not 70% lower than

08:42

alternatives.

08:44

While it hasn't publicly disclosed supercharger

08:46

construction costs, government funding through the

08:49

National Electric Vehicle Infrastructure Formula Program

08:52

has provided a window onto Tesla's costs compared to its

08:55

competitors.

08:57

Tesla is really bidding 50% lower than any other network

09:01

out there for NEVI funding, which is why they've got the

09:04

most amount of funding to date.

09:06

For Supercharging, Tesla uses dynamic pricing that factors

09:09

in the electricity costs, charging power output, and

09:13

peak or off peak hours.

09:15

Musk has indicated Tesla aims for about 30% gross margin, or

09:18

around 10% profitability on its superchargers.

09:22

Tesla doesn't break out revenue from its charging

09:24

business, bundling it in its Services and other business.

09:27

But it has called it out in recent earnings statements,

09:30

saying "pay per use supercharging remains

09:32

profitable" and that it was part of 2023 biggest profit

09:35

generators, helping contribute to the nearly $500

09:38

million in gross profit for the segment.

09:40

In the U.S., charging infrastructure is getting a

09:42

boost from federal funding, which Tesla has been

09:45

aggressively pursuing.

09:46

They've got around $12 million in NEVI funding so far for

09:49

around 30 sites in comparison to a lot of the others.

09:52

So they've got the most amount of funding.

09:54

The Biden administration's Charging and Fueling

09:57

Infrastructure and the National Electric Vehicle

09:59

Infrastructure Formula programs are part of President

10:02

Biden's goal of growing the national charging network to

10:04

500,000 stations by 2030.

10:07

So far, states have allocated $1.5 billion in funding for

10:11

2022 and 2023 to support the construction of chargers, with

10:14

an additional $885 million for 2024.

10:18

Government funding in the infrastructure bill has

10:21

spurred a lot of work around creating electric vehicle

10:25

charging infrastructure, but given how long ago it was

10:28

announced, it has taken a while simply due to process.

10:32

In addition to supporting the development of charging

10:34

infrastructure, the programs also hope to address some of

10:37

the pain points common.

10:38

Today.

10:38

We're seeing standardization for uptime requirements

10:42

requiring 97% uptime on all federally funded chargers,

10:45

also requiring payment systems to be installed on

10:48

these chargers directly. Trying to push towards having

10:51

a more seamless charging experience for all EV drivers

10:53

in the U.S. Today.

10:59

Tesla has said "it's always been our ambition to open the

11:02

Supercharger network to all EVs and by doing so, encourage

11:06

more drivers to rapidly transition to an emission free

11:08

future." It started with making moves on that promise

11:11

in 2021, with a pilot program in the Netherlands that

11:14

allowed non-Tesla EV owners to charge at ten Supercharger

11:18

sites. After a successful run, it began expanding access

11:22

throughout Europe in 2022.

11:24

In the states, as President Biden announced new standards

11:27

for EV charging funded by the Bipartisan Infrastructure Law,

11:30

it was revealed that Tesla would be opening part of its

11:32

network. The move would grant Tesla access to federal funds

11:36

as part of the effort to build out a nationwide

11:38

charging network.

11:39

Tesla if they go after NEVI funding, they would have to

11:42

allow more vehicles to charge at these chargers, and that's

11:46

the biggest reason why I think Tesla would open up the

11:49

network to other automakers.

11:50

In 2023, Ford announced a deal with Tesla to leverage its

11:54

superchargers for Ford EV customers.

11:57

Owners would need a Tesla developed adapter to give its

12:00

CCS ports compatibility with Tesla chargers.

12:03

Ford and Tesla stunned the industry by saying, we have

12:07

arranged for Fords to have access to Tesla's Supercharger

12:12

network nationwide over time.

12:15

It's been a pretty bulletproof rollout.

12:18

Ford owners seem to be uniformly happy.

12:21

Shortly after its announcement, GM also said it

12:24

would work with Tesla. CEO Mary Barra said it will save

12:27

the company $400 million of a planned investment in building

12:31

out EV charging in the U.S.

12:33

and Canada.

12:34

Every other maker has pretty much said yes.

12:38

We will give our folks access to the Tesla network.

12:41

As other EV owners have started using the supercharger

12:44

network, it has presented some challenges.

12:46

Regrettably, they have to park crosswise in two spaces

12:51

because Tesla designed all of the superchargers that are out

12:54

there now, with cables that are just long enough to reach

12:58

the left rear corner of a Tesla, the new Tesla

13:01

Superchargers that are rolling out will have longer

13:03

cables.

13:04

There have been complaints about lines at Tesla stations,

13:07

with access being granted to more EVs, congestion at

13:10

charging sites is a growing concern.

13:12

It's going to be interesting to see how Tesla owners handle

13:16

a fairly large influx, and Tesla's managing it.

13:19

They're rolling out each car company at a time.

13:22

In the U.S., every automaker besides Tesla has been using

13:25

the CCS connector, meaning anyone using Tesla's network

13:28

will need an adapter, but that is quickly changing.

13:32

SAE International, an association that sets

13:34

technical standards for aircraft and vehicles, worked

13:37

with Tesla to standardize NACS, now named the J3400

13:41

standard. Ford was the first to adopt Tesla's connector,

13:45

with GM signing on in June 2023.

13:48

We plan to adopt the North American charging standard,

13:51

and we're working really hard that our first vehicle will

13:54

come in 2025.

13:55

Almost every other automaker has agreed to adopt NACS in

13:58

its vehicles either this year or in 2025.

14:01

The convergence of everybody on a single standard in the

14:04

U.S. is a hugely positive thing, that will accelerate

14:08

adoption of electric vehicles.

14:10

When you combine the the NACS plug with opening up their

14:14

chargers to everybody else, I think that's just a it's a

14:17

massive win for Tesla for sure.

14:20

But I think for the consumer and for the marketplace, I

14:22

think it's a massive win for everybody else as well.

14:25

In October 2023, BP announced it had ordered $100 million of

14:29

Tesla's ultra fast chargers.

14:31

It's the first time Tesla's chargers will be deployed by

14:34

an independent EV charging network and will be installed

14:37

at key BP, Amoco, AM PM, Thorntons, TravelCenters of

14:40

America and other charging locations.

14:46

Between widespread support across the U.S.

14:48

Automotive industry and a surge in government funds to

14:50

build new sites, it seemed Tesla's charging business was

14:53

on the verge of going stratospheric, but then

14:55

everything came crashing down.

14:58

Elon Musk has surprised markets and the auto industry

15:01

by scrapping the unit responsible for Tesla's

15:04

charging network.

15:06

In an email announcing the layoffs, elon Musk said we

15:08

will continue to build out some new Supercharger

15:11

locations where critical and finish those currently under

15:14

construction.

15:15

I wonder how that's going to impact my decision for having

15:17

purchased a Tesla, because that's one of the selling

15:20

points, right? Is that, you know you have this really

15:22

cool, extensive network where you can charge and it's

15:26

seamless.

15:26

THe Supercharging network is like the lifeline for the

15:30

Tesla cars. You got to keep that team.

15:33

The ideal is that there will be more charging stations.

15:37

I've been on the fence about whether or not I'll get

15:39

another Tesla, but that honestly pushes me over the

15:42

edge.

15:42

This is taking the place of gas stations and you need a

15:45

whole lot more. You can make so many billions of dollars.

15:48

This is not no time to lay them off.

15:50

Stop playing around. I think it's time for Elon to take a

15:54

break.

15:54

For employees and contractors working with Tesla, the news

15:57

was sudden and unexpected.

15:59

My business partner, he was driving to a Tesla

16:02

Supercharger site that we're doing right now, and he got a

16:05

call from our construction lead at Tesla telling him to

16:08

turn around, his entire division had been laid off,

16:12

and Mark should go home and go pencil down on the project

16:14

until we find out what's going on.

16:16

Andres Pinter owns a residential and commercial

16:19

charging installation business, and has worked with

16:21

Tesla on several installation projects in Texas.

16:24

We contacted everybody that we know at Tesla.

16:26

Every single one of those emails bounced.

16:29

We have a number of open purchase orders of jobs we're

16:32

working on for Tesla.

16:33

I think they'll complete those jobs, and quite frankly,

16:35

it's a liability for the company to have open permits,

16:38

open construction sites.

16:40

It's just it's sloppy.

16:41

They're not going to do that.

16:42

Without an internal team, some predict Tesla will outsource

16:45

development of new sites.

16:46

We would love to take on the responsibility of building

16:50

that supercharger network for Tesla.

16:52

I think there's a lot of contractors that probably have

16:55

ambition and ability to do it.

16:57

Tesla reportedly left its Supercharger maintenance team

17:00

intact and says it will support existing sites.

17:03

Maintaining the Supercharger network looks easy, but

17:06

there's a lot of people involved and a lot of

17:08

resources. Tesla's got it down to a science.

17:11

I think that the suppliers they work with on the

17:13

maintenance, and particularly the software that they employ,

17:16

is key to maximizing the uptime.

17:19

If Tesla's going to maintain the existing supercharger

17:21

network with a team of whatever size that might be,

17:24

that will give drivers, I think, confidence, but we're

17:27

going to be selling millions of more EVs down the road.

17:30

So that then asks, how well will this existing network

17:34

stand up to that additional use by more brands from other

17:37

automakers?

17:38

I do a lot of driving, so I have been to a lot of

17:41

supercharger stations. There's a lot of chargers that

17:43

don't work, so they got to get their customer service

17:45

down. The response is terrible.

17:47

It's just like a run around in circles.

17:49

I just stopped trying to contact them.

17:51

It's just a waste of time.

17:52

Now we're possibly, potentially adding charging

17:56

being a problem and congestion and people having

17:59

to wait. I don't know man.

18:01

Like me personally. I'd just go get a Mercedes.

18:04

It's already strained in certain urban areas such as

18:06

New York, Los Angeles, San Francisco, to now know that

18:10

that expansion is going to be really halted.

18:12

It then leans on third party charging networks.

18:18

It's too early to tell what the full impact of Tesla's

18:20

decision will be, but some believe it will place more

18:23

responsibility on an industry not ready to take on the

18:25

mantle of the Supercharger network.

18:27

Without having the brain trust at Tesla that's been rolling

18:30

that out and making it possible. We are going to then

18:32

rely on industry to pick up the slack.

18:34

One of the biggest hurdles the industry faces is

18:37

infrastructure policy.

18:38

Tesla's policy team worked hand in hand with its charging

18:41

team in the deployment of the supercharging network.

18:43

The policy team was able to navigate a lot of what are

18:46

typical red tape problems as it relates to infrastructure

18:48

rollout, that third party networks still battle on a

18:51

regular basis. Tesla's team had become very, very savvy in

18:55

how to navigate that on a federal and state level.

18:57

But to blow up their own closed ecosystem that was

19:00

working so elegantly is baffling.

19:03

Tesla does have growing competition in the charging

19:05

space. While it enjoyed dominance in its home market,

19:08

it is a smaller player in Europe and China.

19:10

And there are companies with the ambition to catch up and

19:13

exceed the Tesla Supercharger network.

19:15

There's Ionna, the joint venture between GM, Hyundai

19:19

and a number of other auto OEMs. Mercedes is a deep

19:22

pocketed competitor that's building their own

19:24

supercharger network. Rivian's building their own

19:26

supercharger network.

19:27

Last summer, several legacy automakers joined together to

19:30

form a new joint venture to create a network of 30,000

19:33

plus chargers in North America, with the first

19:36

stations expected to open this summer.

19:38

In 2019, shell acquired LA based charging company

19:42

Greenlots and has started installing chargers at its gas

19:45

stations as part of the Shell Recharge network.

19:47

In the UK, it is converting a gas station to a full EV

19:51

charging one.

19:52

Oil and gas and retail is the next biggest growth sector

19:54

that we're seeing today with shell, BP, Circle-k, 7-Eleven

19:58

all trying to enter this space not just to make money

20:02

off EV charging, but really trying to make the money off

20:05

the dwell times.

20:06

An EV driver is likely going to dwell there for longer than

20:11

they will at a gas station.

20:12

The smart charging providers will see that there is going

20:16

to be a way to squeeze a lot more money out of the wallet

20:20

of their travelers.

20:23

With more infrastructure being built out across the board,

20:25

experts predict it will improve the charging

20:27

experience for everyone.

20:28

The software is going to be standardized, the

20:31

communications is going to be standardized, the payment

20:34

processing is going to be standardized.

20:36

The plugs are becoming standardized.

20:39

There definitely needs to be some sort of consolidation.

20:42

And only time will tell whether Musk's radical change

20:45

in Supercharging strategy is the right one for Tesla.

20:48

In my opinion. Mr.

20:49

Musk is playing three dimensional chess, and he just

20:53

made a move that none of us comprehend yet.

20:55

Some will interpret it as a brilliant move, some will

20:57

interpret it as a bonehead move and only time will tell.

21:01

We have really relied on Tesla's leadership here in

21:03

North America, and I think to all of a sudden have that

21:06

seemingly halted.

21:08

That brings into question where do we go from here and

21:10

who will step up the way that Tesla has?

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Связанные теги
Tesla SuperchargerEV ChargingRestructuringLayoffsMarket ShareCharging InfrastructureElon MuskElectric VehiclesIndustry StandardsConsumer ConfidenceCompetitive Advantage
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