Rivian, an electric car manufacturer, has committed to using Tesla’s charging standard, which will provide customers with access to the most extensive US charging network, adding momentum to Tesla’s efforts to set a new benchmark in the industry.
According to Irvine-based company, Rivian, which has its own small network of fast chargers, will be able to use 12,000 Tesla Superchargers with adapters in the United States and Canada as early as spring 2024. Additionally, Rivian plans to standardize a Tesla-style charging port on its vehicles starting by 2025.
Tesla has made similar agreements with General Motors and Ford in the past few weeks. While other automakers have access to Tesla’s charging network, Tesla expects to benefit from selling power to a larger group of electric vehicle drivers.
Since the announcement of the deal between Ford and Tesla in late May, Tesla’s shares have risen by more than 40 percent.
To alleviate customers’ fears of being stranded when a battery runs out of power, automakers must have access to reliable charging, but most, except Tesla, have refrained from constructing their own networks.
According to analysts, the installation and maintenance of a network of chargers requires significant investment, which can result in limited returns due to the limited number of EVs produced by automakers other than Tesla.
Approximately 60 percent of the fast chargers available in the United States are made by Tesla’s Superchargers, as per the US Department of Energy.
The company’s revenue in the previous quarter was made up of services and other revenue, which included the use of Tesla’s Superchargers, accounting for just under 10 percent. The company does not separate out charging revenue.
The deal allows Tesla’s Supercharger network to be leveraged by customers of Rivian electric pickup trucks and sport utility vehicles, according to a statement by RJ Scaringe, the CEO of Rivian.
Tesla had to make its network accessible for charging in order to qualify for a portion of the federal money.
Until November, Tesla maintained exclusivity by publicly releasing the design and specifications of its own charging standard, which were later renamed the North American Charging Standard (NACS).
China, the world’s biggest electric vehicle market, has its own charging standard, and Japanese automakers like Toyota and Nissan have their own standard called CHAdeMo.
TESLA SUPERCHARGERS TESLA RIVIAN GENERAL MOTORS FORD EV