Chapter 1: The Shift to NACS

In a significant move, major automakers such as Ford, General Motors, and Rivian are transitioning their future vehicles to use Tesla's North American Charging Standard (NACS). This marks a notable achievement for Tesla, especially considering that GM and Ford are poised to emerge as substantial competitors in the American market, while Rivian seeks to establish its own brand identity.

This transition highlights a degree of humility, as these companies recognize that their previous charging solutions cannot compete with Tesla's established network. By adopting NACS, they will forfeit access to over 140,000 CCS chargers in the U.S. in favor of just 17,000 Superchargers. However, it's important to note that only 20,000 of these public chargers offer Level 3 charging, while the rest are limited to Level 2, which caps at a mere ~20kW.

Moreover, Tesla's Supercharging network has demonstrated an impressive uptime of 99.95% in 2022, compared to roughly 80% for public charging infrastructure. This reliability may have influenced the decision by the three automakers to embrace Tesla's standard, as providing a dependable and convenient charging experience is more critical than the image of independence from Tesla's network.

Despite this positive development, several crucial questions arise: Will the adoption of NACS lead to the gradual obsolescence of CCS chargers? And with millions of EVs expected on U.S. roads in the coming years, can Tesla's Supercharging network handle the increased demand?

Chapter 2: Implications for the EV Market

With the transition to NACS, various stakeholders in the EV market are closely observing how rival charging companies and consumers will react. In light of the automakers' switch to NACS, several charging station operators, including Blink, ChargePoint, EVgo, and FLO, have announced plans to integrate NACS support into their DC fast-chargers.

As charging companies recognize the potential in Tesla's infrastructure, a domino effect may occur, prompting more automakers to adopt NACS, particularly in North America. Rivian was among the first to align with Ford and GM's decision, and now Stellantis (which includes brands like Ram, Chrysler, Jeep, and Dodge) and Hyundai are also contemplating the switch.

However, European manufacturers such as Volkswagen, Mercedes, BMW, and Volvo are likely to be slower to adopt NACS due to their commitment to CCS2 as the standard. This situation may lead to the development of NACS-to-CCS adapters, similar to those seen on some recently retrofitted Tesla Superchargers, allowing CCS-equipped EVs to charge at NACS stations.

Thus, while it's probable that most major brands in North America will adopt Tesla's NACS, the reluctance of a few manufacturers won't substantially impact consumers.

Video Description: The video discusses the implications of the demise of CCS charging technology and the reasons behind this shift.

Video Description: This video explores the status of CCS charging technology and its impending obsolescence in favor of NACS.

Chapter 3: The Future of Charging Infrastructure

Fortunately for Tesla, many charging networks have pledged support for the expansion of NACS across North America. However, a significant challenge remains: the U.S. government's $2.5 billion funding for charging infrastructure currently favors CCS technology. To qualify for this funding, Tesla may need to retrofit future Superchargers with CCS compatibility.

This requirement, established before the automakers announced their transition, seems somewhat counterintuitive, potentially incentivizing resistant companies, particularly those in Europe, to cling to CCS for as long as possible.

Ideally, charging companies that have committed to NACS will prioritize building chargers compatible with both standards, rather than focusing solely on CCS chargers for cost-effectiveness. Whether this funding can create an infrastructure capable of supporting millions of EVs across the U.S. with varying charging standards remains uncertain, but the potential is certainly encouraging.

In conclusion, the shift towards NACS appears to be a mutually beneficial move for Tesla and the automakers involved, positioning them well for the future of electric vehicle charging.