By Tesla has emerged as the victor in the electric-vehicle (EV) charging equipment standards battle in the U.S., leaving only a few smaller skirmishes to address. The battle reached a significant milestone recently with EV start-up Fisker (FSR) announcing its adoption of the Tesla (TSLA) charging plug. This move is expected to become the industry standard for Fisker vehicles by 2025.
The decision to adopt Tesla’s charging ports will offer Fisker owners additional charging options, capitalizing on Tesla’s extensive network of 12,000 Supercharger stations across the United States and Canada, according to a recent news release. The agreement covers all current and future Fisker vehicles, providing them with access to Tesla’s renowned charging infrastructure.
Until now, Fisker vehicles in North America utilized what is known as a Combined Charging System (CCS) plug, which was the standard for non-Tesla EVs. However, acknowledging Tesla’s dominance in the charging space, industry players concluded that it was more advantageous to adopt the Tesla plug and gain access to the largest charging network in North America.
This strategic decision by Fisker and other EV manufacturers is both sensible and mutually beneficial for the EV industry. While Tesla earns bragging rights for establishing the winning standard, it also generates revenue from non-Tesla vehicle owners who rely on their charging stations. For Fisker and other manufacturers, this collaboration translates into improved charging accessibility, which ultimately makes it easier to sell electric vehicles.
It is worth noting that Ford Motor (F) and Tesla initiated the standardization process by announcing a similar agreement in late May.
Tesla’s Charging Network and its Impact on EV-Charging Stocks
In recent news, the discussion around Tesla’s charging network has caused some volatility in the market for electric vehicle (EV)-charging stocks. Investors are now faced with determining the value of Tesla’s charging network and assessing whether it poses a threat to existing EV-charging companies.
While there are various factors that influence Tesla’s stock, it is worth noting that since the Ford announcement, Tesla shares have increased by approximately $57. As a result, Tesla’s market capitalization has surged by an estimated $175 billion.
Following the news of other companies adopting the Tesla charging plug, EV-charging companies like ChargePoint Holdings (CHPT) and EVgo (EVGO) experienced declines in their respective stock prices. Concerns arose among investors regarding potential loss of future business or the need for costly retrofitting of charging stations to accommodate the new equipment. However, both companies managed to recover from this initial setback.
Interestingly, Fisker, Ford, GM, Rivian Automotive (RIVN), Polestar Automotive Holding (PSNY), Mercedes-Benz Group (MBG.Germany), and other major players have also recently announced their adoption of the Tesla plug. This trend suggests that further announcements in this vein can be expected in the near future.
While Fisker stock has seen a slight increase of 0.4% in early trading on Tuesday, the S&P 500 and Nasdaq Composite have experienced a decline of 0.4% and 0.6% respectively. Conversely, Tesla stock has dipped by 0.5%. ChargePoint and EVgo shares have also seen a drop of 1% and 0.8% respectively.
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