Tesla opens charging network to other EVs for the first time
reuters.com
reuters.com
That's why it's opening it up first in the EU.
Source: https://www.theverge.com/2021/11/1/22757159/tesla-supercharg...
But while any CCS vehicle was technically capable of plugging in to Tesla's CCS superchargers, until now only Tesla vehicles could charge there because the supercharger's software would recognise a non-Tesla vehicle and not allow it to charge.
There isn't a mandate that requires charging stations must be public and available to all vehicles. However, by converting the supercharger network into an open charging network, Tesla should be eligible to bid for government funding for charger network expansion, which was not available to a Tesla-exclusive charging network.
A few years ago Tesla retrofitted all chargers in Europe to have two plugs - their modified type 2 and CCS. The Model 3 launched with a CCS inlet in Europe and older Model Ss and Xs needed a hardware change and an adapter to use CCS:
https://insideevs.com/news/343728/most-tesla-superchargers-n...
https://insideevs.com/news/438861/ccs2-retrofit-tesla-europe...
These days Tesla's newer chargers just have CCS plugs.
Tesla could do a similar retrofit in North America as part of the transition to CCS. It's a bigger problem because there are more chargers to do, but it's still only 12,653 ports:
[1] https://www.utilitydive.com/news/nearly-all-high-voltage-ev-...
Fast charging will be perfectly profitable in the longer term. There just isn't a large enough established base of EVs to create enough demand yet. But once there is, there will be plenty of customers willing to pay a premium for the fastest, best-located chargers with the best amenities and services on site.
Fast charger operators can make significantly higher margins on reselling electricity than anyone is making on gasoline.
Demand charges are an issue when demand is limited and spiky, but this will be alleviated through increased scale. More customers charging results in a smoother, more predictable demand curve. On-site battery storage is another solution.
It isn't the standard now. All other manufacturers have switched to CCS Type 1 Combo. Tesla is the last holdout.
Tesla sells J1772 chargers and they will sell a CCS adapter. The next step is to put CCS plugs on the chargers and then CCS inlets on the cars.
“How do we democratize access to electric vehicles? That’s a very important part of our strategy,” Mark Fields, who joined Hertz as interim chief executive officer earlier this month, said in an interview. “Tesla is the only manufacturer that can produce EVs at scale.”
A standard that no one else uses is not much of a standard. All other manufacturers have switched to CCS Type 1 Combo. Eventually Tesla will switch too.
One still wonders whether this just was a strange bug or some undercover test arranged by Tesla :)
http://www.avere-france.org/Site/Article/?article_id=7989
https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000043475363
That's why tesla charger are on private managed lands (hotels, stores, ...).
Also it has taken time for open standards to be developed to allow "Plug & Charge" operation:
* https://en.wikipedia.org/wiki/ISO_15118
* https://en.wikipedia.org/wiki/Open_Charge_Point_Protocol
There are of course charge stations where you use an app or kiosk to enter your user account/payment information.
With the current implementation, you download the Tesla app, set up your payment account, then manually select your stall number in the app to begin charging.
So you're telling me that instead of a specific kind of government regulation, another kind of government regulation got Tesla out of the walled garden? Got it!
It costs quite a bit to have different SKUs around the world, especially when one of the SKUs is for a major market. At some point it becomes more cost efficient to just cut out some of SKUs.
California has the same effect in the US: https://en.wikipedia.org/wiki/California_effect
> Tesla uses the CCS standard in Europe, allowing a wide range of cars to charge in stations without an adapter that uses a similar connector.
That also explains the announcement first in Europe as well.
They are in no way the "dominant charging provider", probably not even for Tesla's.
What's more likely is that there are so many public and private EV chargers in the Netherlands that the superchargers sit mostly idle and Tesla needs to open them up to try and recoup some of the capex.
[0] https://www.acea.auto/press-release/risk-of-two-track-europe...
Whenever I've plugged my Model 3 in at superchargers in the Netherlands, they're not mostly idle.
Furthermore, the few times I've been to a fast charger they were mostly empty or at least not full. Most of the people at my work (who have Tesla's) also rarely visit them because you can charge pretty much everywhere. No need to for a detour if you can just charge at your destination or at home.
Granted, this is still anecdotal, but would Tesla open their superchargers if they didn't have excess capacity? I think probably not, and therefor my theory seems more likely than trying to build a charging monopoly in the country with the most chargers in the EU.
For a petrol station. There's nothing to cannibalize. They can either watch all the EVs drive past to the next charging + pit stop opportunity or accommodate those customers and have them in their shops, rest rooms, restaurants, etc. Petrol isn't their core business in any case.
Easy choice if you want the business. The rest is just economical Darwinism. Anyone driving a car for work is likely to be switching sooner rather than later; in some countries that process is already pretty far completed with e.g. leasing companies preferring evs for cost and other reasons. EV sales have hit double digit percentages in many countries and the number of countries where that is over 50% is also growing. So, easy choice for most petrol stations. More a question of when and how many than if for most of them.
It’s like saying telecoms won’t provide internet services because it might eat into SMS and phone call fees. So far that hasn’t been true - where I stay at least.
This has definitely happened, worldwide, and it's still happening. Crap mobile internet quotas, for example.
It's probably better to cannibalize your own market share than have the revenue go to a competitor.
Additionally, opening up the network should be beneficial for Tesla's cash flow - not that they'd need it these days, though.
Not only that, but their core business model is pulling a profit anyway.
Cash flow is not a particular concern for Tesla right now, they are cash-rich.
True, but building out the supercharger network is expensive and likely still a loss-leader for Tesla. Opening it means that Tesla can generate more revenue from an expensive asset.
> "Cash flow is not a particular concern for Tesla right now, they are cash-rich."
Cash flow is always a concern. Tesla would not stay "cash rich" for long without positive cashflow.
Their current financial position means they can make much more strategic decisions about long-term profitability rather than just worry about cash flow.
In fact, this is exactly what the market has recently realized separates Tesla from most venture-funded businesses.
Agreed, but they do seem to have over 16 billion $ in cash and other liquid assets (per https://finance.yahoo.com/quote/TSLA/cash-flow/), and that is after all the expenses they had for the new factories. That's a lot of money to ride out a storm.
Do you have any source for this?
From what I see Ionity (https://ionity.eu/) has around 400 stations and Tesla has around 600. So the difference is not crushing. Plus Ionity has huge backers: https://ionity.eu/en/about.html
"On the other hand, the number of 1,211 chargers"
ionity has 4 stalls per station on average
https://insideevs.com/news/496754/europe-600-tesla-superchar...
"The number of Tesla Supercharging stations in Europe has recently exceeded 600 in 27 countries (with more than 6,000 individual charging stalls). On average, that's 10 stalls per station."
The other thing in practical experience is that tesla superchargers are super reliable and ionity not so much.
Didn't the EU tell them they had to?
The markets are just totally different. In the EU there are lots of cars that could use the Superchargers so you can make way more money there then in the US.
They always said eventually they would open it up to everybody. Its a balance between it being a selling point and making money from higher utilization.
If I'm wrong, please provide a source.
Furthermore, this 2021 European Court of Auditors special report pushed for the same [1].
A Supercharger station gives access to private users with an authorisation or a subscription so it's considered accessible to the public. All charging stations accessible to the public should to allow multistandard recharging.
[0] https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELE...
[1] https://www.eca.europa.eu/Lists/ECADocuments/SR21_05/SR_Elec...
There is nothing in it that requires Tesla (or any other operator) to make their network available to all makes of vehicle.
However, without an "open" charging network Tesla cannot access government funds for charging network expansion that is available to their competitors.
This is how all EU directives work. Member states are required to implement EU directives in law.
https://ecomento.de/2021/06/16/tesla-soll-supercharger-fuer-...
So, I think the logic was: eventually it will happen anyway - so it's better for Tesla to do it themselves before they are forced to, so that they can do it on their own terms. For example, so that Tesla drivers will never have to wait longer than x minutes.
That's a minister of an EU member state allegedly telling them he would like to force them to do it.
I think Tesla saw the writing on the wall in the EU, which is that the EU doesn't want closed eco-systems, including payment, for EV charging. Now you can do it when forced or leap-frog that and get some positive PR from it. Plus you might be able to do it on our own terms. I highly doubt Tesla would have done it yet without some pushing from the EU.
He has zero authority to order companies what they have to do or don't have to do in my country.
That being said, Andi Scheuer is quite an incompetent idiot.
Germany and France are the main financial contributors to the EU budget, so they are involved in pretty much all EU matters.
That is very true. It also is part of the problem with that particular Minister, one of those deals cost Germany north of 500 million for nothing.
Maybe they could also increase the reliability 10 fold by making them default to giving away free electricity if it can't contact the providers services, I refuse to believe that the core electrical pieces of a car charger are anywhere near as unreliable as the infrastructure people keep throwing up in front of it.
As far as payment for charging is concerned, EVs seem to be really backwards compared to to the existing fuel station networks.
Also intriguing how Tesla is able to sell a legal requirement as a great initiative on their behalf.
It also makes chargers more expensive both in production cost and in maintenance, as you have to support a display and physical buttons and stuff, all that for a "legacy payment method".
Because these obscure methods of paying usually work out a lot cheaper than paying directly by credit card (usually they have a QR code with a website).
Are you implying you are able to can use a card to pay in a German bakery?
I can pay by card in chain bakeries and most non chain bakeries around me.
My supermarket recently upgraded their card reader to a model which doesn't take an eternity to process a nfc transaction.
Restaurants are the biggest hold outs and there many which still only take cash (presumably for "tax reasons").
As others have mentioned, Covid was a huuuuuuge boost for the acceptance of cashless payment systems in Germany. Even small business now have card readers and don't raise an eye when you want to pay 7,83 by card.
If anything good came out of Covid it might be this.
I was specifically talking about Germany and its love for cash. It can be tricky to pay with cards in restaurants and small stores. It is a well known quirk.
https://www.bbc.com/worklife/article/20200520-will-coronavir...
I know, purely anecdotal. But it goes to show that we Germans maybe aren't as backwards-thinking ;)
EV infrastructure in EU is incredibly fragmented. Nice that Tesla chargers are becoming accessible, but we still have fragmentation of apps and charging subscriptions/accounts (Tesla app/account is another one you need to have): https://svedic.org/tech/daddy-did-you-really-need-electric-c...
It’s going to be good business for operators as Tesla owners are in the high earn/spend bracket and it will allow Tesla to significantly expand its brand’s footprint (not that they need it) while reinforcing the perception that driving Tesla is more superior to other experiences (even if it might not be true).
The incremental revenue from franchises is also nice. And it would allow Tesla to deploy more batteries and solar panels.
Some gas station usage disappears entirely due to at-home charging and destination charging (i.e. opportunistically wherever the car is parked). You simply don't visit a special place to charge.
Remaining usages are for longer-range road trips, which are already served adequately by bigger service stations along highways. The rest is for users who don't have at-home charger and need a 45-minute weekly charge, but for this the ideal model is not a charger with a gas-station like shop, but a mall that happens to have chargers.
> the ideal model is not a charger with a gas-station like shop, but a mall that happens to have chargers.
I own few Teslas for last decade or so. Last year took a trip with wife across the Pacific Northwest. The mall concept is extremely annoying because it's the most congested area of the city. Gas station model is superior for road trips, as one needs a place to stop, use restroom, stretch legs, grab coffee/bite.
What we experienced were chargers in middle of nowhere with no services or ones in parking lots of hotels and malls. Malls were crowded and hard to get into. Hotels were angry that we are using their services. Empty lots were, well, empty.
Shops at gas stations here are for buying red bull, cigarettes, and toilet paper. That's not enough "entertainment" for a longer charge.
Anyway, I think both of us made solid points. It’s going to be interesting to watch.
Is it $10/kWh 'premium charging' or is it $0.10/kWh 'encourage EV's pricing'.
This is only slightly higher than what Tesla owners are charged, arguably to cover the additional overhead.
Also, it's competitive: The comparative fast-charger network Ionity charges €0.79 per kWh, or €0.35 kWh with a €17.99 subscription.
Also, it makes monthly budgeting easier for individuals.
Even if you don't use any electricity you still pay a day rate (on most tariffs).
What I'd hate to see long term is if the subscription remains tied to a single supplier (i.e. I pay my subscription to Tesla, but use Ionic to charge, so pay the subscription charge and the higher rate). That will mean the decision to use a different charge point still has repercussions, and prevents the openness of the infrastructure we (society at large if we're moving full electric) really need.
One of the great things mobile phones did for society was the PAYG model. It lowered costs for consumers and allowed to onboard even people with atypical cashflows, who might have otherwise struggled to afford monthly contracts. It was a great democratization of access, and that should be the model to pay for services.
Sadly, companies of all size prefer monthly "standing charges" because they make it much easier to fleece consumers by making them pay even if they don't use the service - and if you miss a payment, they can add further charges on top, increasing the abuse. Even mobile companies now make it harder and harder to get true no-strings PAYG accounts.
Until these EVs can match the convenience of gas, there isn't a point to get one. Especially since batteries are a huge tax on resources as it is.
The more we stop this parasitical "subscription for everything" model, the better.
So no, they don't require a subscription to fuel up. It's just a loyalty scheme.
If I have a subscription to Walmart which gives me half price food in return for $50/month, you can bet I'll always be shopping there.
That means I'll usually drive further for food, have less selection, and will be far less likely to switch to another grocery store.
When many stores have a subscription model, they can start to creep prices up for non-subscribers, and before long grocery shopping starts to look like cable internet or phone plans.
I can't 'just switch to AT&T for a few minutes to see if it's faster'!
Endgame:. "36 month Walmart Grocery Plus for $50/month. Early termination charge: $1800. For just $25/month extra, you can also shop at other Walmart locations."
- Beds and bed frames. Locally beds are marked up 1000%+ over the same bed I can get online. There is only one store.
- Protein drinks. I can buy out the local stores monthly/quarterly stock in one day. They are currently having issues getting my drinks. There is only one grocery store and people come from a neighboring state to shop there.
- Shelves. In fairness the local hardware store does have some shelves. I wanted steel shelves that can hold a lot of weight. They have the RubberMade shelves that don't meet my needs. I could weld some myself but the cost of steel is really high right now.
- Amino acids, Enzymes, High Quality Vitamins, Mastic Gum, Berberine, Garlic Extract, misc other molecules. The vitamins sold in grocery stores are not only low quality, but actually a cancer risk with vitamin E being the prime example. Males should never take alpha-tocopherol without a balance of gamma-tocopherol and selenium less risking prostate cancer. There are a myriad of other examples in this area. Convincing grocery store chains to carry the higher quality molecules is a herculean effort. When the cost of wood and steel come down I will be building a double-insulated geo-thermal greenhouse and will start producing some of my own molecules, but not all of them.
- Inverters, charge controllers.
- Medical supplies. I am trained as a first responder and have to be ready for family and neighbor emergencies. The local store only has what one would find in a grocery store.
- Radio equipment. CB HP/FRS, scanners, HAM, etc...
- Computer equipment. This is a no-win for me. Not only are there no local stores for this but Amazon has burnt me multiple times. Buying computer equipment on Amazon is a huge gamble.
I could continue listing things for a long time but it's easier to list what I could get locally.
Ionity is an outlier with its extreme pricing.
In practical terms, expect to see some challenges reaching the charging port on non-Tesla vehicles...
"The right to build a charger comes with responsibility to service electricity to any EV car."
The EU, and in particularly Germany, is strongly nudging Tesla that, if they do it now, then right now at least they can do it in their own terms, and existing experience can flow into legislation.
If they wait, then they will need to complain with whatever is legislated, and without any experience, they won't have a seat at the table (while other EV charger systems with experience will).
I see it more like: Tesla has good charging infrastructure and Tesla can scale chargers faster than cars (with cars production they are battery constrained).
If even Shell and BP are installing electric chargers at their gas stations to get a small cut of this market it's a no-brainer for Tesla
Who really knows the strategy behind their moves, but legislation forcing their hand certainly feels plausible. Which company wouldn't want to own a proprietary network of chargers all over the world and extract as much money as possible?