Tesla is in the works of opening up charging stations to other electric vehicles.
Key details
Tesla is considering opening its previously Tesla-only charging stations to other electric vehicles (EVs).
News of this big step was not announced by the company directly, but it was announced on Twitter. Company’s CEO Elon Musk has more than 100 million followers on the social-media site and he is in the midst of purchasing the company.
Tesla seems to be rolling ahead incrementally with the non-Tesla EV charging plan. Musk has said Tesla probably would allow non-Tesla vehicles to use its network, and the company introduced a pilot project to do so in Europe in November 2021. Now that plan appears to be moving to the U.S., reports Barron’s.
Tesla has one of the largest fast charging networks in the world, so it makes sense why other EV owners would want access to these chargers. Tesla’s fast charges can give 50 or 100 miles of range in mere minutes, a big difference from plugging in an EV at home.
Why it’s important
Allowing other EVs to have access to Tesla chargers brings in more revenue for the company, but opening up the system likely makes it easier to access federal funds earmarked for building EV-charging infrastructure, says Barron’s.
In order for other EV users to access the chargers, they must download the Tesla app and pay to use the charger. The cost of the charger varies by region, but is always more expensive than the electricity it is using, generating a profit for the company.
There isn’t a straightforward answer of how much money Tesla could bring in from this new decision, but Goldman Sachs analyst Mark Delaney says that it could add $1 billion to $3 billion in sales a few years down the road. That revenue could add about 75 cents a share to bottom-line results.
