Tesla’s powerplay

Tesla has always operated in its own bubble, going its own way without collaborating with other automakers.

But that’s about to change. Tesla’s SuperCharger network, since launch closed to all but Tesla drivers, is to be opened up to drivers of rival brand electric cars. This means owners of other EVs will be able to gain access to Tesla’s large and very fast network by simply using the Tesla app.

This is obviously a carefully thought-out strategic move. It will increase the utilisation of the Tesla owned SuperCharger network, enabling lower charging costs, at least to Tesla owners, and making the network more profitable. That in turn should enable Tesla to expand its network more rapidly.

COUNTER-INTUITIVE MARKETING

The move is great news for all EV drivers outside of the Tesla bubble. They will suddenly be able to access a super-reliable, ultra-rapid charging network. But I might feel a bit narked if I was one of Tesla’s existing customers.

Tesla’s phenomenal success is itself putting stress on the charging network, and Tesla drivers are already experiencing queues at larger city hubs. The arrival of Fords, Hyundai and VWs could make that worse. But that’s not how Tesla sees it.

Tesla has never advertised. It leaves that expense to other car brands that are desperately trying to catch up on the road to e-mobility and zero emissions. By opening the exclusive SuperCharger network to other drivers it will expose these drivers directly to the ‘Tesla experience’, and it believes that will lead to more Tesla buyers in the long term.

LEGACY MANUFACTURERS

Legacy car manufacturers are already fighting new EV manufacturers like Tesla with one arm tied behind their backs. They are forced to prop up their outgoing petrol and diesel car ranges, and these cars are more complex to build, with tens of thousands of parts against just a few hundred in an EV. It’s not surprising that many have decided to place their EV ranges under sub-brands or even completely new marques such as Volvo’s Polestar. BMW uses I; MercedesBenz uses EQ; VW uses ID, and so on.

At some point they’ll also be fighting against their own brands as customers debate whether to buy internal combustion engines or EVs.

Meanwhile, Tesla is unburdened by legacy ICE cars, so it just does product launches and announcements and markets through social media channels.

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 will demonstrate its global superiority. Elon Musk has stated: “The biggest constraint at Superchargers is time.” Outside Tesla, the majority of existing rapid charging infrastructure is made up of relatively sluggish 50kW chargers, which make up around 80% of the rapid charging network. In addition, many have operational faults and

Tim Scrafton sluggish maintenance schedules. By contrast, Tesla’s chargers operate at Founder and COO 250kW – five times faster than most “rapid” of The Connect chargers. Tesla has even stated that it will

Consultancy increase charging speeds from 250kW to 300kW – indicating that its own new EVs will be upgraded to receive this capacity. Tesla’s network will make almost 80% of the existing public charging network obsolete. The car companies are investing in similar technology, including the Daimler/ Hyundai-backed pan-European Ionity charging network of 350kW chargers. These have been opening at a rate of around 100 per year – even though only a handful of cars can use even half that capacity – including Porsche and Tesla. Remember, although its SuperCharger network is proprietary, Tesla EVs are still capable of using chargers outside their own network – they just rarely need to do so. By opening up his SuperCharger network Elon Musk will demonstrate, in one move, a huge market superiority for both vehicle and charging capability.

MANAGING THE NETWORK

It is likely that Tesla will introduce dynamic pricing for other EVs incapable of charging at the rate of Tesla EVs. Tesla could also introduce allotted time periods for Tesla owners to have priority at peak times. Whatever happens it is likely to be another counter-intuitive marketing play to demonstrate the first-hand benefits of Tesla ownership. Tesla is used to being a major disruptor in the automotive world. This move sets it well on the way to disrupting the fuelling of all transport, given that it will all be mostly electric. How will the future of charging will look? Tesla took six years (2012-2018) to reach 10,000 SuperChargers. But from November 2020 to August 2021, it ramped up extra production by another 10,000 per year by opening a new Chinese factory. Tesla is big on both solar panels and battery storage as well – it is becoming a major force as a utility company in more and more countries. So Tesla will make electricity, sell electricity and is likely to become the absolute dominant force when it comes to the charging network. n Tim Scrafton is founder and COO of The Connect Consultancy, the UK’s largest independent EV consultancy and installer. www.theconnectconsultancy.com