Tesla Supercharger with quick charging & better coverage can be the reason to buy Tesla. But, why is Tesla giving a competitive advantage away? When the playing field is leveled for other EV makers, how may Tesla stand out in the fierce EV competition?
No ordinary carmaker
Range anxiety may still be a barrier for some to adopting Electric Vehicles (EV). Therefore, Tesla has been deploying Tesla Supercharger since 2012. Today, with 35K Superchargers, which can add 200 miles in 15 min, Tesla reduces the range axiality & makes long road trips more enjoyable. For example, the Gentleman’s Journal reports Model X is not only more than capable to take you on a 1,500km trip, across 6 Europe countries: Germany, Belgium, France, Luxembourg & the Netherland. Furthermore, Tesla makes it easy by showing charging points along the route & having ‘Destination Chargers’ at hotels all over Europe. So far, no car maker is on track to catch up with this anytime soon.
No ordinary carmaker will share its advantage, such as Superchargers with its competitor. But, Tesla is doing so. Since 2021, Tesla has been piloting non-Tesla Supercharger in a few countries, such as the Netherlands. On July 7, CNET reports Tesla’s Supercharger network may supercharge all EVs in North America later in 2022. It’s indeed an odd move for Tesla as a carmaker. But, that may be a necessary step for the crazy one to “Becoming Energy Positive”.
Reinventing the “gas” station
EV charging stations are still needed for long-distance trips, even though many may charge EVs at home or work. They seem to be the gas station of EVs. However, EV charging stations may not be exactly like gas stations even in the longer run. Whoever takes the chance to reinvent may be able to change our life for the better. To name a few:
1. Supercharging the renewable
There are many EV charging standards out there. Whereas, a gas station can service any brand of car. Sure, it may be a workaround by connector adapters. But, it’s not the same. The charging efficiency can be different depending on how well chargers & cars work together. Furthermore, battery & fast charging technologies still have a lot of room for improvement as the EV distribution ramps up. Whoever innovates in both sides in lock step may have an edge.
2. Decentralization of energy distribution
EV may be a key to redefining the future of the power grid. Vehicle-to-grid (V2G) & Vehicle-to-home(V2H) can provide key buffers to flatten the curve of the gap between generation & consumption. For example, solar energy is greener for sure, but even in Hawaii, the sun does not always shine. Since 2017, Tesla turned Kauai into a renewable energy paradise. Now, Tesla Megapacks & Powerwalls are on track to replace Hawaii’s last remaining coal plant. With the mass adoption of EVs, a huge network of distributed power buffers can be a game changer. And when someone can coordinate them together with the power supply, a new age of the smart grid will come sooner.
Bonus: when someone dares to build a charging station & maybe optimize for certain cars, they may not only optimize efficiency in the way others can not, but also make it cheaper. For example, Tesla has been deploying fast-charging stations at a much lower cost than others. According to Forbes, it only cost Tesla $30K in Tesla’s Texas Charger Grant Applications. Whereas, others charge $150K per station.
3. Shaping a new landscape of destination
Tesla’s Destination Charging may be a program putting Tesla in a better position to shape the landscape of destinations. Once upon a time, a spotless restroom was a key differentiator for gas stations to compete. So what could be the new game when a typical charge cycle becomes ~15 min. or even overnight? Having EV charging stations on-site may be a differentiator for a place for people & cars to recharge today. As EV adoption accelerates & many of them may not be Tesla, what may Tesla do to push forward to “Become Energy Positive” by short-circuiting the cycle of innovation, maximizing leverage of connected energy endpoint, and reinforcing its moat? When one day, a superior charging network becomes a must, it may not be the “gas stations” as we know them today.
Full Disclosure
The opinions stated here are my own, not those of my company. They are mostly extrapolations from public information. I don’t have insider knowledge of those companies, nor a whatever expert.
