Rivian brings Tesla one step closer to changing the charging standard
On Tuesday, Amazon.com Inc (NASDAQ: AMZN )-backed EV maker Rivian Automotive Inc (NASDAQ: RIVN ) revealed it is following in the footsteps of legendary automakers Ford Motor (NYSE: F ) and General Motors (NYSE: GM ) in taking use the charging standard of the EV king, Tesla Inc (NASDAQ: TSLA ). As Rivian adds momentum to Tesla̵[ads1]7;s quest to change the industry standard, drivers will benefit from the largest charging network in the US, as well as those drivers rated as the most efficient chargers. Rivian’s shares rose 5.5% following the news.
Rivian gets access to Tesla Superchargers
Starting next spring, Rivian drivers will be able to access 12,000 Tesla Superchargers in the US and Canada, using a special adapter. According to the US Department of Energy, Tesla’s Supercharge infrastructure makes up about 60% of the fast-charging network in the US, so Rivian drivers are in for a big treat. From 2025, Rivian will also add a Tesla-standardized charging port to its electric cars.
Rivian will continue to build its charging network
The maker of the R1T electric truck and the R1S electric SUV will continue to expand its own fast-charging network, but it will use Tesla-standardized plugs, meaning Rivian is in for a significant source of revenue from Tesla owners .
Finally good news for Rivian
Like any startup, Rivian has had trouble getting its business on track. It recently revised its exclusivity agreement with its largest shareholder, Amazon, as production capacity outpaced Amazon’s demand for new electric vans. Amazon is committed to 10,000 EV vans per year, while Rivian insists that 10,000 units only meet the agreed annual minimum. Given that the production line is up and running, Rivian needs Amazon to release it from the exclusivity agreement struck in 2019 so it can sell its vans to others. Although it sells far fewer electric cars compared to Tesla, Ford and GM, Rivian is one of the biggest players in the electric car field. During the first quarter, it sold almost 8,000 electric cars, while according to Cox Automotive, Ford sold almost 11,000 electric cars and GM just over 20,000 cars. This figure alone puts Rivian ahead of luxury brands such as BMW. Tesla remains the king of EV sales with 161,000 EVs sold in the US, but unlike the Rivian, it doesn’t have an electric SUV and pickup with the Cybertruck only expected to hit the road by the end of the year.
A series of victories for Tesla
On Tuesday, Reuters reported that Hyundai Motor Company (OTC: HYMTF ) CEO Jaehoon Chang said the South Korean automaker is considering switching to Tesla’s charging standard. Chang stated that the company is considering what is best for customers, but a clear problem is that Tesla’s current network of superchargers does not allow for the faster charging that Hyundai’s EVs can get with other chargers, so Tesla must be willing to make some adjustments for Hyundai to take this step. Since Ford jumped on Tesla’s charging bandwagon in late May, Tesla’s shares have risen 40%. Also, these series of deals help Tesla take advantage of $7.5 billion in funding that the Biden administration provided to accelerate the development of electric car chargers in the United States. the North American charging standard. With this series of deals, Tesla appears to be quite close to changing the industry’s charging standard.
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