US Government Promises Subsidies for Tesla Charging Stations if CCS Standard is Supported
The US government has assured that it will subsidize the construction of Tesla charging stations if they support the Combined Charging System (CCS) standard. This news comes as General Motors joins Tesla and Ford in their intentions to utilize the North American Charging Standard (NACS) for electric vehicle (EV) charging at Tesla’s proprietary Supercharger stations, further heating up investor interest in Tesla securities.
Officials from the US government have said that Tesla charging stations can be built using government subsidies if they ensure support for CCS connectors. The CCS standard has been the recommended type for use in North America until Tesla began to shift the paradigm.
The automaker first allowed access to its charging stations for EVs of other brands and then reached an agreement with Ford and GM to switch to the NACS, a standard that Tesla initially invented and promoted. The CCS standard continues to be used by foreign EV manufacturers who supply their vehicles to the US, including Volkswagen, KIA, and Hyundai.
Currently, Tesla, Ford, and GM collectively control approximately 70% of the US EV market. They have a chance to make the NACS the de facto standard for the region. However, Reuters reports that representatives of the US President’s administration have recommended Tesla to maintain access to the CCS connector at their charging stations.
Upon meeting this condition, Tesla can claim a portion of the $7.6 billion subsidies that the US government plans to allocate for the construction of a charging station network along the most heavily trafficked highways. American citizens will also be partially reimbursed for the purchase of adapters used to connect cars with different types of connectors to charging stations equipped with CCS type cables.
Analysts have warmly welcomed the news of GM’s decision to join Tesla and Ford in promoting the NACS charging connector. This initiative will mainly benefit Tesla, as it will increase revenue from electricity sales at its charging stations. Over the next few years, sector-specific revenue could increase by $3 billion or $6 billion, depending on different estimates. Up to a third of this will be generated by owners of EVs of other brands that support the NACS standard.
In combination with other factors, this has ensured the growth of Tesla’s stock price for 11 consecutive days. During this time, the company’s capitalization increased by $200 billion, and the last time a similar rally was observed was in January 2021. Yesterday’s trading ended with a price increase of 4%, although at its peak, it rose more than 7%. Speculators betting on a decline in Tesla’s stock price lost approximately $6 billion over this period, according to analysts at S3 Partners.
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- I'm Martin Harris, a tech writer with extensive experience, contributing to global publications. Trained in Computer Science, I merged my technical know-how with writing, becoming a technology journalist. I've covered diverse topics like AI and consumer electronics, contributing to top tech platforms. I participate in tech events for knowledge updating. Besides writing, I enjoy reading, photography, and aim to clarify technology's complexities to readers.
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