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- Tesla announced Thursday that it will open up some of its Supercharger networks to Ford.
- Tesla is the leader in North America for roadside fast charging stations.
- Supercharging is a feature that some Tesla owners would consider purchasing another brand of EV if it was available.
Tesla is planning to open up some of its exclusive Supercharger Network to Ford Owners — a move which could reduce a significant Tesla Advantage in the EV Race.
Ford EV drivers will be able to use approximately 12,000 Tesla Superchargers in North America, starting in spring 2024, thanks to the partnership announced on Thursday.
Wedbush Tech analyst Dan Ives said to Insider it was a "no brainer" move for Ford. He added that "Tesla has the majority of cards with its Supercharger Network."
Tesla has invested over a decade in building more than 20,000 Superchargers across North America. This makes it the largest network of roadside rapid chargers. Superchargers, meanwhile, are widely considered to be more reliable and easier to use than chargers from other networks. Other EV owners are forced to rely on an unreliable patchwork of public charging stations, which is difficult to locate and has reliability problems.
While many EV owners charge their cars at home, the lack of public charging stations has been a barrier to wider EV adoption. Drivers are often concerned about range anxiety. Non-Tesla drivers have told their horror stories over the years. From a road trip in which a Kia owner was forced to stop 12 different times to charge on slow public chargers, to a Mustang Mach-E's driver having to stop four times at charging stations to find a working one.
If you ask Tesla owners why they chose their automaker, the answer is often the charging network. Insider spoke to several Tesla owners who said they would only buy another automaker’s EV if it had access either to Tesla’s network or a network that was equally reliable.
Jonathan Baalke told Insider that he could not imagine using third-party charging stations with any other car company. He drives 150 miles or more a day to work. It's difficult to feel range anxiety with Tesla's network. But if you were driving another brand of car, it would be a concern.
Some Tesla owners may be unhappy about the move, as they will have to share their chargers with others. Garrett Nelson, senior equity analyst and vice president at CFRA research, anticipates "dissatisfaction from some Tesla owners" at the increased traffic to Tesla charging stations.
Musk doesn't mind if the playing field is leveled. The Tesla CEO stated that the move would ensure Ford was on an "equal footing with Tesla"
Musk stated that "we don't wish for the Tesla Supercharger Network to be a walled-garden." "We want to make it something that supports electrification, and sustainable transportation in general."
Tesla opened up some of its charging stations to non-Tesla users in Europe and some areas of the US before Thursday's announcement. Ford's current electric cars require a special adapter in order to connect to Tesla charging ports, but Ford will be equipping its next-generation EVs with a Tesla style port. Tesla's port is different from the one used by most electric cars.
What's in it For Tesla?
Mike Austin, an EV-specialist senior research analyst with Guidehouse Insights, told Insider that while there is a risk, the deal gives Tesla a reliable source of revenue.
He said, "It is a simpler business model than manufacturing cars." "It's a regular source of revenue and you don’t have to worry about recalls, tooling, or setting up factories."
Musk has said in the past that his concern for Tesla's share of the market is unfounded. The billionaire told Tesla's annual gathering last month that it could sell its car for "zero profit", and still be the dominant player in the market, due to its autonomic technology.
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By: gkay@insider.com (Grace Kay,Tim Levin)
Title: Tesla just gave away one of its biggest advantages in the EV race
Sourced From: www.businessinsider.com/tesla-charging-deal-with-ford-gives-away-biggest-advantage-2023-5
Published Date: Fri, 26 May 2023 18:17:01 +0000
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