Tesla Needs to Open Charging Network to Enjoy $7.5bn Subsidy: Report

Tesla Needs to Open Charging Network to Enjoy $7.5bn Subsidy: Report

  • According to Reuters, the new US requirements will put Tesla under pressure to open up its electric vehicle charging network to competitors.
  • If not, he may miss out on the $7.5 billion in Charger subsidies planned by Biden.
  • Tesla’s more than 40,000 electric vehicle chargers can only be used by its cars, but officials told Reuters that could change.

Tesla could find itself deprived of $7.5 billion in Biden administration grants if it fails to open up its electric vehicle charging network to competitors, according to a Reuters report.

The automaker’s SuperCharger network has more stations in the United States than any other charging company, but they can only connect to outlets used by Tesla cars.

But next week the Department of Transportation will finish drafting a requirement that will pressure Tesla to add the charger used by rival electric vehicle makers, Reuters reported Friday, citing administration officials.

If this is not the case, it could destroy his chances of benefiting from the $7.5 billion in funding the Biden administration plans to plan to increase the number of charging stations in the United States.

“We understand that Tesla is looking to modify their system to be more open. So if they reach that point and meet those eligibility criteria, they will definitely be eligible for funding,” said Stuart Anderson, manager. of the Iowa Division of Transportation Development. , told Reuters.

Tesla already received a boost from the Biden administration’s electric vehicle push in February, when the DOT refined its $7,500 tax credit consumer incentive program to include more eligible models by expanding the definition of an SUV. This increased potential demand for some of Tesla’s models.

Elon Musk, CEO of Tesla met with two White House officials last month to discuss ramping up production of electric vehicles and the bipartisan Infrastructure Act, which includes charging equipment legislation.

Musk has spoken in the past about opening up the Supercharger network, but hasn’t moved publicly to let others in. Tesla is dominant in chargers in the United States, and it has a huge private network of more than 40,000 EV chargers worldwide.

Opening up this network to rivals like Ford, GM and Rivian could shed some shine on the Tesla brand, removing the exclusive use of its customers. On the other hand, it could possibly be a new source of revenue for Tesla on top of any subsidy windfalls.

Shares of Tesla rose 1.1% in premarket trading on Monday, after closing down 5% on Friday in a broader stock decline. The electric vehicle maker’s stock is up about 60% year-to-date.

The DOT and Tesla did not immediately respond to Insider’s request for comment.

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