- Infrastructure is half the battle for EV adoption.
- Some would-be EV owners will make the leap when they have access to more Superchargers.
The Tesla Supercharger network could remove the last barrier to EV ownership.
Tesla has spent the last several weeks preparing to open access to its previously exclusive Supercharger network, forging partnerships with Ford, GM, and Rivian since the end of May.
Long-standing barriers to EV ownership like battery range and price are finally being addressed, leaving one last obstacle for many would-be EV-owners: access to public fast-charging stations.
"Infrastructure is at least 50% of the battle for making the switch," Karl Brauer, automotive analyst for iSeeCars, told Insider. "We've got to get people confident that the cars will work for them when they need them."
As more electric cars have hit the road in the last several years, terms like "range anxiety" have crept into the lexicon, defining the experience of driving a plug-in car more than the zippy instant torque or quiet ride.
Tesla has the largest fast-charging network in North America, with about 20,000 Superchargers that previously only connected to Tesla vehicles. Non-Tesla EV owners have long relied on an inconsistent patchwork of public chargers, which can be difficult to find and are often not well-maintained.
Providing more drivers with access to Tesla's vast and reliable Supercharger network may be enough to sway some EV-curious shoppers, according to Brauer.
"Some people might find that the number of chargers they have access to in their area goes from 6 to 25," he said. "That person could have their mind changed quickly."
Superchargers are not a magic solution
Still, Brauer said, access to a Supercharger network alone will not solve the industry's charging infrastructure problem – nor will it cure range anxiety.
A recent study of EV infrastructure done by iSeeCars found that of the 150,000 EV chargers in the US, only about 30,000 are fast chargers (including the Tesla Supercharger network). Only about 11,000 of those fast chargers are non-Tesla chargers so opening up the Supercharger network does make a difference – but doesn't solve the problem.
More access to Superchargers could also create a new problem: long lines.
Tesla drivers covet their exclusive access to the Supercharger network, and drivers from other brands flooding to their stations could create some friction, Brauer said.
Giving up an advantage
Allowing other car companies to use the Supercharger network takes away Tesla's last advantage over its competitors, who in the last several years have caught up to Tesla on range and driver-assist technologies.
Tesla recognizes its Supercharger advantage. In addition to price cuts this year, Tesla has dangled free Supercharger miles to lure in more customers.
Still, the deals with Ford, GM, and Rivian also create a steady stream of revenue for Tesla at a time when the company is rapidly ramping up production against the headwinds of a slowing car market.
Wall Street has reacted well, reversing a nearly two-week slide in the stock price late last week.
"We believe 'what has changed' for the Street over the last month is the recognition with the Ford and GM Supercharger partnerships that Tesla's sum-of-the-parts valuation is now finally starting to get tapped into," Wedbush analyst Dan Ives wrote in a recent note to clients.