Texas Mandates Tesla's (TSLA) NACS Plugs for New Stations
Texas approved its plan to mandate the installation of Tesla’s TSLA North American Charging Standard (NACS) plug at new charging station. The move is essential for the state to qualify for federal tax funding.
The plan was first proposed in July this year but was delayed due to an objection letter sent to the Texas Transportation Commission by five EV charging companies. The companies said that the supply chain concerns and certification of Tesla’s connectors would put the deployment of electric vehicle chargers at risk and they would require more time to access the Supercharger network.
The letter forced Texas to defer a vote on the plan twice to understand NACS and its implications before the commission voted unanimously to approve the plan.
The grant of $5 billion makes Texas the biggest recipient of the funding set by the National Electric Vehicle Infrastructure (NEVI) program, which is meant to electrify U.S. highways. The federal rules require a pre-established Combined Charging System (CCS), preferred by the Biden administration, as a minimum to be eligible for the funds. Individual states can add their preferences on top of CSS before distributing the federal funds.
Per a Reuters report, Texas will receive and deploy $407.8 million over five years. Washington state has similar plans and Kentucky has already mandated NACS plugs .
Florida recently revised its plan, and said that it would mandate NACS one year after SAE International, which is currently reviewing the technology. SAE International announced in June that it will make Tesla NACS a standard connector in the country. SAE’s adoption will make the implementation of ports easier for charging station manufacturers and operators. It will also make the charging process more consistent and reliable for EV owners.
So far, auto giants like Ford, General Motors and Rivian have joined hands with Tesla to integrate its NACS connector into their respective electric vehicles. EV charging solution providers like EVgo, Tritium, Blink and ABB have added Tesla’s connectors as an option to their units.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
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