In challenge to Tesla, major automakers launch EV charging network
(Reuters) — A group of major automakers on Wednesday said they were forming a new company to provide electric vehicle charging in the United States in a challenge to Tesla (NASDAQ:TSLA) and a bid to take advantage of Biden administration subsidies.
The group includes General Motors (NYSE:GM), Stellantis, Hyundai Motor and its Kia affiliate, Honda, BMW and Mercedes Benz, brands representing about half of U.S. vehicle sales but a small share of the EV market dominated by Tesla.
The unusual coalition of competitors said the new joint-venture company would aim to become the leading provider of fast charging in North America with a target of rolling out 30,000 chargers, starting along major highways and in cities.
The automakers did not specify how much they would invest individually or collectively, but said they would be open to additional investment or participation from other companies, including outside the auto industry. A name for the venture was not announced.
Tesla, which accounted for more than 60% of U.S. EV sales last year, has the largest current network of fast-chargers with almost 18,000 Superchargers in the United States.
Tesla said earlier this year it would open part of that charging network to EVs from rival brands in order to be eligible for a share of funding from the $7.5 billion in federal subsidies on offer to expand the use of EVs.
Tesla’s lead in building out a network of chargers has given it sway in setting the standard for how future EVs will connect and power up, something smaller charging companies and other EV makers have viewed with concern.
GM, Mercedes and others have signed on to adopt Tesla-developing charging technology from 2025 to get access to a larger share of its Superchargers.
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