Elon Musk and Tesla are poised to dominate a key part of the EV revolution

“The 360” shows you diverse perspectives on the day’s top stories and debates.

What’s happening

Ford and General Motors recently announced that drivers will soon be able to charge their company’s electric vehicles using charging stations operated by Tesla, the EV manufacturer owned by megabillionaire Elon Musk. Both automakers also plan to abandon their current model of charging connector and begin equipping new vehicles with Tesla’s design beginning in 2025. Texas and Washington also recently became the first states to mandate that all publicly funded charging stations are compatible with Tesla’s charging system.

The moves mark a massive shift for the rapidly expanding EV industry, which has been engaged in a fierce competition over which charging design would become the standard in the U.S. — a contest often compared to the battle between VHS and Betamax tape formats in the 1980s.

Like power cords for phones and computers, EV charging has until now been fully segregated by brand. Tesla, the industry’s dominant player, uses a system it created called the North American Charging Standard (NACS) that only its cars could access. EVs from all other automakers rely on the Combined Charging System (CCS). GM and Ford transitioning to NACS will mean that the three largest EV manufacturers in the U.S., which control more than 70% of the American EV market, will all use Tesla’s format.

Experts widely agree that a nationwide network of easily-accessible, fast-charging stations is critical to the country meeting its climate emissions goals. The Biden administration has allocated billions of dollars to help build 500,000 chargers across the country by the end of the decade, though some estimates suggest the country will need more than double that.

Why there’s debate

Recruiting Ford and GM to its system is clearly a victory for Tesla in the charging wars, but experts are divided on what it would mean if a single company came to dominate the nation’s EV charging infrastructure — particularly one run by a controversial figure like Musk.

A number of industry watchers were encouraged to see Tesla gain the upper hand. They make the case that settling on a single charging standard will help relieve uncertainty that is one of the major reasons drivers are hesitant to adopt EVs. Many also argue that Tesla’s system is much more reliable than the CCS alternative.

Skeptics, on the other hand, say a lengthy format battle may create confusion for potential customers and worry about a future where one winner has no competitors to force them to maintain quality or keep prices down. The most vocal critics, however, argue that allowing Musk to effectively create a monopoly over EV charging could be a recipe for disaster, given the perceived track record of the various companies under his leadership.

What’s next

It remains to be seen whether other major automakers will also adopt NACS. So far only niche EV company Rivian has done so. Both Hyundai and Stellantis — the parent company of brands like Chrysler, Dodge and Jeep — have said they are considering a switch, but no final decision has been made.

Perspectives

Drivers will be skeptical about EVs until they’re confident charging will be easy

“For EVs to truly take off, there needs to be some standardization so consumers feel comfortable knowing they have ample charging locations to turn to and won’t be left stranded on the side of the road.” — Jessica Caldwell, auto industry analyst, to The Verge

The charging wars could slow down the transition to EVs

“Non-Tesla charging companies will need to retrofit their existing fleet to accommodate the 60 to 70 percent chunk of the E.V. market now on track to use the Tesla chargers, while prospective car buyers might also opt to wait until they can buy a car that will match the network, keeping internal combustion vehicles on the road for longer.” — Kate Aronoff, New Republic

All EV drivers will benefit from the sudden injection of competition in the charging industry

“Ford's action put all the existing charge networks on notice that what they've offered isn't nearly good enough. It covers all the charging bases. Most of all, it'll reduce the anxiety of driving an EV long distances. … All EV drivers are likely to benefit in the long term.” — John Voelcker, Car and Driver

Musk simply shouldn’t be trusted with something so important

“Given Musk’s erratic behavior, control-freak management style, and hard-earned reputation for doing whatever he wants, it’s hard not to wonder if this is the guy we all want in charge of the way cars will get around in the future.” — Patrick George, Atlantic

Tesla’s system is just better than the alternative

“Conversations about the energy transition often focus on the creation of new technologies: what’s the new energy source, hardware, or algorithm that can cut emissions? But the EV charging space is a reminder that business-model innovation can be just as important — if not more important — than the technology itself.” — Justin Worland, Time

It would be dangerous to allow any single company to monopolize such critical infrastructure

“Though Tesla’s chargers have proven the best available in the U.S. in recent years, that doesn’t mean it’s in the EV driver’s best interest for them to be the only ones available.” — Lauren Leffer, Gizmodo

Tesla's system may not be as reliable when it comes to charging other cars

“Tesla had it easy — [its charger] had to talk to three cars. It’s a lot different making that work across 100 EVs being upgraded with software every few months.” — Nick Nigro, EV industry analyst, to Canary Media

The number of chargers matters much more than with system they use

“We need a lot more chargers of all kinds. And the Tesla charger network opening up to non-Teslas will help, but I think the term ‘drop in the bucket’ really applies here.” — Karl Brauer, auto industry analyst, to Yahoo Finance

Is there a topic you’d like to see covered in “The 360”? Send your suggestions to the360@yahoonews.com.

Photo illustration: Jack Forbes/Yahoo News; photos: Chesnot/Getty Images, Andia/Universal Images Group via Getty Images, Getty Images