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EV Charging Space in for a Paradigm Shift With Tesla's NACS
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The electric vehicle (EV) charging landscape is undergoing a seismic shift, with a major move toward the adoption of Tesla's (TSLA - Free Report) North American Charging Standard (NACS) port. Leading charging equipment manufacturers Blink Charging (BLNK - Free Report) , ChargePoint (CHPT - Free Report) , EVgo (EVGO - Free Report) and Wallbox (WBX - Free Report) have announced plans to offer chargers featuring Tesla's connector, marking a significant turn away from the standard Combined Charging System (CCS) connector.
BLNK, CHPT, EVGO, WBX Ride NACS Connector Wave
In response to the industry-wide evolution, EVgo, which began offering Tesla connectors in 2020, announced its plans to expand the presence of NACS connectors within its U.S. fast charging network. Likewise, ChargePoint plans to provide a NACS connector option for its products, as well as upgrades for existing chargers. Meanwhile, Australia-based Tritium has declared its intent to incorporate the NACS connector into its chargers in the United States and other adoptive markets.
Wallbox unveiled its plans to integrate NACS connectors into its DC Fast Charger, Supernova. This Barcelona-headquartered company, committed to expediting the adoption of electric mobility, aims to provide users with smooth and convenient charging experiences. Ensuring compatibility with NACS is viewed as a significant stride toward achieving this goal.
Blink announced that it would soon launch its all-new 240kW DC Fast Charger, which will offer both NACS and CCS options. This product was teased at the Consumer Electronics Show (CES) 2023, underscoring the company's commitment to embracing the latest technological advancements within the EV charging industry.
This paradigm shift in the EV charging landscape has been positively received by investors. For instance, shares of BLNK, CHPT, EVGO and WBX rose 4.3%, 8.1%, 13.1% and 2.2%, respectively, yesterday.
TSLA’s Power Play
The shift in industry preference can be attributed to the advantageous design of Tesla's NACS, which is notably more compact and lighter than its CCS counterpart, rendering it more user-friendly for motorists. This transition is not isolated to charging equipment manufacturers, with major automakers General Motors and Ford announcing their decision to embrace Tesla's NACS port. The new partnerships forged through this move are expected to allow the NACS port to command 60% of the U.S. EV market.
It was Ford that got the ball rolling. Last month, Ford initiated this new trend by announcing that it would make its charging cords compatible with Tesla's NACS cables, granting Ford EV owners access to Tesla's vast Supercharger network. General Motors followed suit. On Jun 8, General Motors announced a collaboration with Tesla to integrate NACS plugs into its EVs starting in 2025. The collaboration will also provide GM EV users access to 12,000 Tesla Superchargers for charging their vehicles. GM EV drivers will get access to the Tesla Supercharger Network starting in 2024 and will initially require an adaptor.
The recent announcements by Tesla, General Motors, and Ford, coupled with the proactive response from EV charging equipment makers, clearly illustrate the continuous evolution of the EV charging industry. As technologies advance, industry stakeholders are uniting to evaluate and implement best practices, thus fostering a more efficient and user-friendly EV charging landscape.
Brokerage firm Piper Sandler projects Tesla's revenues from its charging network to reach approximately $9.65 billion in 2032, with more than half of the sales stemming from other EV manufacturers leveraging the network. This forecast underscores the immense potential of the current shift toward NACS (true to its name), not only for Tesla but also for the broader EV charging industry.
With Tesla revolutionizing the charging landscape, its stock price rose 3.55% yesterday. Its stock price increased for the record-breaking 13th consecutive session, igniting market frenzy. TSLA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Parting Thoughts
The sweeping shift toward Tesla's NACS port signifies a pivotal moment in the EV charging landscape. It promises not only a more streamlined charging experience for EV drivers but also a potentially lucrative opportunity for investors. As the industry continues to evolve, stakeholders who effectively adapt to these changes stand to gain the most from this burgeoning market.
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EV Charging Space in for a Paradigm Shift With Tesla's NACS
The electric vehicle (EV) charging landscape is undergoing a seismic shift, with a major move toward the adoption of Tesla's (TSLA - Free Report) North American Charging Standard (NACS) port. Leading charging equipment manufacturers Blink Charging (BLNK - Free Report) , ChargePoint (CHPT - Free Report) , EVgo (EVGO - Free Report) and Wallbox (WBX - Free Report) have announced plans to offer chargers featuring Tesla's connector, marking a significant turn away from the standard Combined Charging System (CCS) connector.
BLNK, CHPT, EVGO, WBX Ride NACS Connector Wave
In response to the industry-wide evolution, EVgo, which began offering Tesla connectors in 2020, announced its plans to expand the presence of NACS connectors within its U.S. fast charging network. Likewise, ChargePoint plans to provide a NACS connector option for its products, as well as upgrades for existing chargers. Meanwhile, Australia-based Tritium has declared its intent to incorporate the NACS connector into its chargers in the United States and other adoptive markets.
Wallbox unveiled its plans to integrate NACS connectors into its DC Fast Charger, Supernova. This Barcelona-headquartered company, committed to expediting the adoption of electric mobility, aims to provide users with smooth and convenient charging experiences. Ensuring compatibility with NACS is viewed as a significant stride toward achieving this goal.
Blink announced that it would soon launch its all-new 240kW DC Fast Charger, which will offer both NACS and CCS options. This product was teased at the Consumer Electronics Show (CES) 2023, underscoring the company's commitment to embracing the latest technological advancements within the EV charging industry.
This paradigm shift in the EV charging landscape has been positively received by investors. For instance, shares of BLNK, CHPT, EVGO and WBX rose 4.3%, 8.1%, 13.1% and 2.2%, respectively, yesterday.
TSLA’s Power Play
The shift in industry preference can be attributed to the advantageous design of Tesla's NACS, which is notably more compact and lighter than its CCS counterpart, rendering it more user-friendly for motorists. This transition is not isolated to charging equipment manufacturers, with major automakers General Motors and Ford announcing their decision to embrace Tesla's NACS port. The new partnerships forged through this move are expected to allow the NACS port to command 60% of the U.S. EV market.
It was Ford that got the ball rolling. Last month, Ford initiated this new trend by announcing that it would make its charging cords compatible with Tesla's NACS cables, granting Ford EV owners access to Tesla's vast Supercharger network. General Motors followed suit. On Jun 8, General Motors announced a collaboration with Tesla to integrate NACS plugs into its EVs starting in 2025. The collaboration will also provide GM EV users access to 12,000 Tesla Superchargers for charging their vehicles. GM EV drivers will get access to the Tesla Supercharger Network starting in 2024 and will initially require an adaptor.
The recent announcements by Tesla, General Motors, and Ford, coupled with the proactive response from EV charging equipment makers, clearly illustrate the continuous evolution of the EV charging industry. As technologies advance, industry stakeholders are uniting to evaluate and implement best practices, thus fostering a more efficient and user-friendly EV charging landscape.
Brokerage firm Piper Sandler projects Tesla's revenues from its charging network to reach approximately $9.65 billion in 2032, with more than half of the sales stemming from other EV manufacturers leveraging the network. This forecast underscores the immense potential of the current shift toward NACS (true to its name), not only for Tesla but also for the broader EV charging industry.
With Tesla revolutionizing the charging landscape, its stock price rose 3.55% yesterday. Its stock price increased for the record-breaking 13th consecutive session, igniting market frenzy. TSLA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Parting Thoughts
The sweeping shift toward Tesla's NACS port signifies a pivotal moment in the EV charging landscape. It promises not only a more streamlined charging experience for EV drivers but also a potentially lucrative opportunity for investors. As the industry continues to evolve, stakeholders who effectively adapt to these changes stand to gain the most from this burgeoning market.