The Rivian Automotive Inc (NASDAQ: RIVN) share price was trading up slightly on the second day after announcing plans to adopt Tesla's charging standard. The move would give Rivian customers access to the biggest U.S. charging network while adding momentum to Tesla's bid to set the industry standard.
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The move by Rivian is the latest vote of confidence in Tesla’s charging standard known as the North American Charging Standard (NACS), which competes with the Combined Charging System (CCS), which initially had the exclusive backing of the current US administration.
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Given that the CCS was the only EV charging system that qualified for Federal funding from the US government, Tesla was forced to open up its network to include CCS charging plugs, which are mainly offered by firms such as EVgo, and Tritium DCFC and ABB Mobility.
Tesla has gotten a massive boost after signing massive deals with General Motors and Ford to use its charging network for their electric vehicle (EVs), a move many see as key in positioning the company’s NACS system as the industry standard.
The three companies mentioned above offering only CCS EV charging systems have rushed to install NACS plugs into their EV charging stations following the deals inked by GM and Ford with Tesla.
Rivian has a network of superchargers, but the company, like many EV manufacturers, has realised that it is not easy to build a network of EV chargers like Tesla’s, which is the largest in the United States.
The economics of building and maintaining a network do not add up, given the minimal returns such systems generate for their operators. For example, only 10% of Tesla’s revenues were generated from services, including its charging stations.
Rivian, which makes the R1S SUV and the R1T pickup truck, said it would continue to expand its fast-charging network. In 2021, it outlined plans for more than 3,500 charging stations. Still, Rivian’s network places in comparison to Tesla’s network of 12,000 superchargers.
Still, news of the partnership with Tesla was good for Rivian and the industry at large.
*This is not investment advice.
Rivian stock price.
The Rivian stock price was trading up 1.08% at $15.87, adding to yesterday’s 5.51% rally on EV charging news.
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