current affairs
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Tesla’s powerplay
will demonstrate its global superiority. its own bubble, going its own way Elon Musk has stated: “The biggest without collaborating with other constraint at Superchargers is time.” Outside automakers. Tesla, the majority of existing rapid charging But that’s about to change. Tesla’s infrastructure is made up of relatively SuperCharger network, since launch closed sluggish 50kW chargers, which make up to all but Tesla drivers, is to be opened up to around 80% of the rapid charging network. In drivers of rival brand electric cars. This means addition, many have operational faults and owners of other EVs will be able to gain access sluggish maintenance schedules. Tim Scrafton to Tesla’s large and very fast network by simply By contrast, Tesla’s chargers operate at Founder and COO 250kW – five times faster than most “rapid” using the Tesla app. This is obviously a carefully thought-out chargers. Tesla has even stated that it will of The Connect strategic move. It will increase the utilisation increase charging speeds from 250kW to Consultancy of the Tesla owned SuperCharger network, 300kW – indicating that its own new EVs will enabling lower charging costs, at least to Tesla owners, and be upgraded to receive this capacity. making the network more profitable. That in turn should Tesla’s network will make almost 80% of the existing enable Tesla to expand its network more rapidly. public charging network obsolete. The car companies are investing in similar technology, including the Daimler/ COUNTER-INTUITIVE MARKETING Hyundai-backed pan-European Ionity charging network The move is great news for all EV drivers outside of the Tesla of 350kW chargers. These have been opening at a rate of bubble. They will suddenly be able to access a super-reliable, around 100 per year – even though only a handful of cars ultra-rapid charging network. But I might feel a bit narked if can use even half that capacity – including Porsche and I was one of Tesla’s existing customers. Tesla. Tesla’s phenomenal success is itself putting stress Remember, although its SuperCharger network is on the charging network, and Tesla drivers are already proprietary, Tesla EVs are still capable of using chargers experiencing queues at larger city hubs. The arrival of Fords, outside their own network – they just rarely need to do so. Hyundai and VWs could make that worse. But that’s not how By opening up his SuperCharger network Elon Musk will Tesla sees it. demonstrate, in one move, a huge market superiority for Tesla has never advertised. It leaves that expense to both vehicle and charging capability. other car brands that are desperately trying to catch up MANAGING THE NETWORK on the road to e-mobility and zero emissions. By opening the exclusive SuperCharger network to other drivers it will It is likely that Tesla will introduce dynamic pricing for expose these drivers directly to the ‘Tesla experience’, and it other EVs incapable of charging at the rate of Tesla EVs. believes that will lead to more Tesla buyers in the long term. Tesla could also introduce allotted time periods for Tesla owners to have priority at peak times. Whatever happens it LEGACY MANUFACTURERS is likely to be another counter-intuitive marketing play to Legacy car manufacturers are already fighting new EV demonstrate the first-hand benefits of Tesla ownership. manufacturers like Tesla with one arm tied behind their Tesla is used to being a major disruptor in the automotive backs. They are forced to prop up their outgoing petrol and world. This move sets it well on the way to disrupting the diesel car ranges, and these cars are more complex to build, fuelling of all transport, given that it will all be mostly with tens of thousands of parts against just a few hundred electric. in an EV. It’s not surprising that many have decided to place How will the future of charging will look? Tesla took six their EV ranges under sub-brands or even completely new years (2012-2018) to reach 10,000 SuperChargers. But marques such as Volvo’s Polestar. BMW uses I; Mercedesfrom November 2020 to August 2021, it ramped up extra Benz uses EQ; VW uses ID, and so on. production by another 10,000 per year by opening a new At some point they’ll also be fighting against their own Chinese factory. brands as customers debate whether to buy internal Tesla is big on both solar panels and battery storage as combustion engines or EVs. well – it is becoming a major force as a utility company in Meanwhile, Tesla is unburdened by legacy ICE cars, so more and more countries. So Tesla will make electricity, sell it just does product launches and announcements and electricity and is likely to become the absolute dominant markets through social media channels. force when it comes to the charging network. esla has always operated in
MARKET DOMINANCE Tesla’s big move is a potential game changer, exposing the market disparity between Tesla and the rest. By opening up its charging network Tesla believes it
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n Tim Scrafton is founder and COO of
The Connect Consultancy, the UK’s largest independent EV consultancy and installer. www.theconnectconsultancy.com
OCTOBER 2021
