Key Takeaways
- Tesla’s recent layoffs raise questions about the future of the Supercharging network in the US.
- Despite federal funding for EV charging infrastructure to fill rural gaps, currently the majority of Level 3 chargers are near cities.
- NACS charging standard, pioneered by Tesla, is rapidly gaining traction among major automakers and charging stations in the US.
Tesla has found itself lately mired in turmoil, beset with layoffs, recalls, and shifting product timetables. In recent efforts to cut costs in the face of increased margin pressure and shareholder expectation, Tesla began a string of layoffs, stretching across numerous sectors within the company and potentially encompassing over 20,000 employees by the time the dust settles.
While there are clearly bumpy seas ahead for Tesla, shareholders are hoping it’s simply a storm to pass through before reaching calmer waters.
How Tesla’s NACS plug became the de facto EV charging standard
And why that’s a good thing for the auto industry.
As part of these sweeping layoffs, Tesla has let go of the majority of its Supercharging team, raising questions about the future of the charging network, as well as the now ubiquitous NACS charging standard. While there are clearly bumpy seas ahead for Tesla, shareholders are hoping it’s simply a storm to pass through before reaching calmer waters.
The current state of charge
What’s the status of NACS standard in the US?
As of the writing of this article, there are over 2,200 Tesla Supercharging stations containing just over 20,000 individual Superchargers in the United States and roughly 150 stations under construction. Last week, Tesla reached out to all its suppliers and contractors, apologizing for the sudden restructuring and offering little in the way of clarity moving forward.
For now, it’s safe to say that at worst, the Supercharging network will plateau for some time at roughly 2,350 stations throughout the United States.
What the company did say was that suppliers should “please hold on breaking ground on any newly awarded construction projects and planned pre-construction walks,” added “If currently working on an active Supercharging construction site, please continue.”
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For now, it’s safe to say that at worst, the Supercharging network will plateau for some time at roughly 2,350 stations throughout the United States. By just about any estimate you can find, Tesla Superchargers represent far greater than half of all the Level 3 chargers in the United States.
While much consternation has been spun up around the recent layoffs, Elon Musk took to X in an attempt to calm shareholder nerves. “Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations,” he posted. In the following days, as more stories about canceled projects began to circulate, Elon again set out to clarify on X, saying “Just to reiterate: Tesla will spend well over $500M expanding our Supercharger network to create thousands of NEW chargers this year.” While the words of Tesla’s CEO may provide cold comfort, time will tell if the optimism he is projecting is borne out in continued progress on the network.
Filling in the gaps
Rural zones in the US receives government funding
While Tesla may currently have the lion’s share of Level 3 chargers across North America, federal investment in expanding EV charging infrastructure may serve as a vote of confidence at continued development. Roughly 85% of Level 3 chargers are found in US Metropolitan Statistical Areas, which is another way of saying almost all the Level 3 chargers are in and around cities. Many of these chargers can be found along major interstate and state highways, since Level 3 chargers are needed for long-distance driving in an electric vehicle. The federal government has passed billions in spending for EV charging infrastructure, though actual building has been slow to start.
Slowly but surely, the Biden administration has started doling out funds, with a focus on filling the gaps in the current charging infrastructure found most often in rural areas.
NACS and first mover advantage
Significantly ahead of competitors
While it’s too early to tell what the full impact of the Tesla layoffs will be on US charging infrastructure, or the future of the supercharging network at large, it’s safe to say that the NACS charging type, developed and then standardized by Tesla, has had a significant first-mover advantage in the United States. Tesla’s vehicles hold over 50% of the EV market share in the US, and the company’s Supercharging stations represent well over 50% of Level 3 stations in the country.
Roughly 85% of Level 3 chargers are found in US Metropolitan Statistical Areas, which is another way of saying almost all the Level 3 chargers are in and around cities.
Not only is Tesla responsible for NACS proliferation across its fleet and chargers, but practically all major automakers have committed to, or already have, transitioned to the NACS standard in future electric models. As Tesla’s charger type continues to spread at what seems like an exponential rate, it would seem a logical conclusion that future EV charging stations, whether those built with federal dollars or stations built by private industry, would use the NACS charging standard.
As Tesla continues opening its charging network to non-Tesla customers, the NACS boulder keeps picking up momentum as it rolls down the proverbial hill. Shareholders and Tesla owners should take comfort in the seeming inevitability of NACS expansion and adoption, as the charging standard has likely crossed the Rubicon of plug standardization.
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