7 big auto markers trying to provide charging service against Tesla

A group of seven major automakers announced the formation of a new company that aims to provide electric vehicle (EV) charging services in the U.S., presenting a challenge to Tesla and capitalizing on Biden administration subsidies. The coalition includes General Motors, Stellantis, Hyundai Motor, Kia, Honda, BMW, and Mercedes Benz, together representing about half of U.S. vehicle sales but holding a small share of the EV market, which is currently dominated by Tesla.

The joint-venture plans to introduce 30,000 EV chargers in North America, focusing on major highways and cities. While the automakers did not disclose the individual or collective investment amounts, they remain open to additional participation from other companies, including those outside the automotive industry. Despite potential antitrust concerns, the collaboration allows for reduced costs compared to building separate charging networks and offers the advantage of controlling the customer experience and collecting valuable data.

Currently, the U.S. has over 30,000 fast-charging stations, with costs varying from less than $100,000 to over $200,000 for the most powerful versions. The venture's establishment is estimated to require multiple billions of dollars, as indicated by industry executives.

The White House praised the initiative, recognizing its potential in creating new union jobs for installation and maintenance. The Biden administration aims to achieve 500,000 chargers by 2030, a significant increase from the current capacity.

Tesla, which dominated over 60% of U.S. EV sales in the previous year, possesses the largest network of fast-chargers, with nearly 18,000 Superchargers. Recently, Tesla announced its intention to open part of its charging network to rival EVs to qualify for a share of federal subsidies amounting to $7.5 billion.