The real reason Tesla is scary…it preempts EV charging and component standards

Last month, there was news that sent the U.S. stock market into a frenzy. Tesla and Ford announced a partnership in electric vehicle charging. Ford’s agreement to use Tesla’s charging stations, or “superchargers,” was interpreted by many in the industry as a sign that Tesla is setting the standard for electric vehicle charging. And when it comes to electric vehicle components, Tesla is setting a new standard that will enable lighter vehicles and lower costs.

“Tesla is the bullet train”…Ford joins forces to open up charging networks

Tesla’s partnership with Ford was announced last month on April 25. Ford officially announced that starting early next year, its electric vehicles will utilize the V3 Supercharger, which is installed at more than 12,000 locations in North America, including the U.S. and Canada, using an adapter developed by Tesla. Starting next year, Ford plans to use the V3 Supercharger using an adapter developed by Tesla, and starting in 2025, Ford’s electric vehicles will be equipped with the Tesla charging standard so that they can be charged without an adapter. Ford becomes the first major automaker to adopt Tesla’s charging standard. At the time of the announcement, Ford and Tesla’s stock prices were up 6.2% and 4.7%, respectively.

Ford Mustang Mach E

Ford CEO Jim Farley likened Tesla to Japan’s bullet train because it combines fast car performance with advanced infrastructure. “We love the location and reliability of the Tesla charging network, the routing software, and the ease of use and reliability of the connectors,” he said. The Tesla Supercharger is an ultra-fast charger that supports up to 250 kilowatts.

U.S. President Joe Biden praises Elon Musk and Tesla for their decision to open up electric vehicle chargers on Twitter on Feb. 15. Twitter capture

Previously, Tesla stuck to a charging standard (NACS) that was separate from the CCS charging standard (DC Combo), making it impossible for other brands of electric vehicles to use its superchargers, but the policies of President Joe Biden’s administration have changed that. The Infrastructure Act of 2021 included $7.5 billion in subsidies to build out electric vehicle charger networks, and last year it required companies to adopt a standardized charging specification to qualify for the subsidies.

In response, Tesla announced earlier this year that by next year, it would open 7500 of its dedicated charging stations in the U.S. to all electric vehicles, including those from other manufacturers. President Biden praised Tesla CEO Elon Musk for doing a “great job.” Tesla’s partnership with Ford is an extension of this shift in tone. Ford’s decision to partner with Tesla is seen as a way to address one of the biggest barriers to EV adoption: charging.

Ford faces more pressure in U.S. EV business

Ford is the leader in EV sales in the United States. In the first quarter of this year, it ranked fifth in sales, behind Tesla, General Motors (GM), Hyundai Motor Group, and Volkswagen. Many analysts say Ford’s move into charging is bound to have an impact on other companies.

“Car designs cannot be standardized, but charging networks can,” said Lim Eun-young, a researcher at Samsung Securities. “Tesla can grow into a monopoly in the North American charging market, and Ford can rapidly expand its EV sales while securing its charging network.” “GM, Hyundai Motor Group, and Volkswagen may be burdened by having to sell EVs and expand their charging networks at the same time,” she added. Lim predicted that Tesla will use its partnership with Ford to increase its charging service revenue.

A Hyundai electric vehicle is charged at an Electrify America charger.

Unlike Ford, GM plans to pursue its own charging initiatives. It previously said it plans to install up to 40,000 public Level 2 EV chargers in the U.S. by 2026. Volkswagen is expanding its charging infrastructure in the U.S. through a specialized charging subsidiary called Electrify America. Currently, Hyundai Motor Group is working with Electrify America to make it affordable for U.S. customers to charge their EVs. There are concerns that Hyundai Motor Group, which is investing trillions of won in the production of electric vehicles and batteries in the U.S. through the Inflation Reduction Act (IRA), may bear the burden of expanding the charging infrastructure.

“Tesla now building its own parts ecosystem”

Another area where Tesla is disrupting the EV market is in parts. While traditional automakers based on internal combustion engines are hesitant to change their EV parts in light of the rapid changes in the parts industry, Tesla is making bold innovations in the introduction of parts to lighten vehicles and reduce costs.

Elon Musk, CEO of Tesla. Reuters

In April, the Korea Institute for Automotive Research published a report titled “The Implications of Tesla’s 48V Architecture”. Tesla announced the introduction of a 48V-based automotive electrical and electronic architecture (structure) at its Investor Day in March this year. The company said it would make 48V the standard as most cars use batteries, generators, and electronics based on 12V. “48V can increase the power efficiency of the structure,” said Lee, who analyzed that “simplified wiring will reduce the weight of vehicle wires.” His analysis suggests that switching the voltage of a vehicle’s electrical and electronic architecture from 12 volts to 48 volts메이저사이트, as announced by Tesla, will advance vehicle lightweighting.

“The announcement of the 48V switch signals Tesla’s increased control over the auto parts industry ecosystem,” the researcher said. “It suggests that Tesla has completed discussions with parts companies to ensure that the new standard can be mass-produced at a reasonable cost.” “Tesla, which previously lacked influence over the auto parts industry, has built its own parts ecosystem and can now reliably source parts.

Tesla, led by Elon Musk, has disrupted the electric vehicle market. The global automotive and battery industry is always on the edge of its seat. We want to keep you up to date with the latest Tesla news.

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