We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rivian (RIVN) Gains 5.5% on Plans to Embrace Tesla's NACS Port
Read MoreHide Full Article
In a strategic move, Rivian Automotive Inc. (RIVN - Free Report) announced plans to incorporate Tesla’s (TSLA - Free Report) charging ports into future automobiles, gaining access to the EV behemoth’s supercharger network. This move marks Rivian as another high-profile adopter of Tesla’s charging technology that is rapidly becoming the industry standard.
Starting from spring 2024, Rivian plans to utilize the Supercharger network for charging its highly acclaimed R1T and R1S models. Additionally, beginning in 2025, Rivian intends to include North American Charging Standard (NACS) ports as a standard feature in their future R1 vehicles, as well as in the forthcoming R2 platform.
The announcement has been positively received by investors. Shares of Irvine, CA-based Rivian rose 5.5% yesterday, closing the session at $15.70.
In the broader landscape, this move aligns with a significant industry trend. It was Ford (F - Free Report) 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 (GM - Free Report) 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.
Rivian is the latest automaker to join the bandwagon. And it's not just the automakers, even the major charging companies have been shifting toward Tesla’s technology. This shift promises a more streamlined charging experience for EV drivers and potentially lucrative opportunities for investors.
EV Charging Revolution
The EV charging landscape is undergoing a seismic shift, largely characterized by a major move toward the adoption of Tesla's NACS port. Leading charging equipment manufacturers like Blink Charging, ChargePoint, EVgo, and Wallbox have announced plans to offer chargers featuring Tesla's connector, marking a significant turn away from the standard Combined Charging System (CCS) connector.
The shift in industry preference can be attributed to the user-friendly design of Tesla's NACS, which is more compact and lighter than its CCS counterpart. The new partnerships forged through this move are expected to allow the NACS port to command 60% of the U.S. EV market.
The sweeping shift toward Tesla's NACS port signifies a pivotal moment in the EV charging landscape. As technologies advance, industry stakeholders are uniting to evaluate and implement best practices, 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, not only for Tesla but also for the broader EV charging industry.
In conclusion, the latest announcement by Rivian to adopt Tesla's EV charging standard illustrates the company's strategic positioning in an evolving industry landscape. As technologies advance, industry stakeholders are uniting to evaluate and implement best practices, thus fostering a more efficient and user-friendly EV charging landscape.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Rivian (RIVN) Gains 5.5% on Plans to Embrace Tesla's NACS Port
In a strategic move, Rivian Automotive Inc. (RIVN - Free Report) announced plans to incorporate Tesla’s (TSLA - Free Report) charging ports into future automobiles, gaining access to the EV behemoth’s supercharger network. This move marks Rivian as another high-profile adopter of Tesla’s charging technology that is rapidly becoming the industry standard.
Starting from spring 2024, Rivian plans to utilize the Supercharger network for charging its highly acclaimed R1T and R1S models. Additionally, beginning in 2025, Rivian intends to include North American Charging Standard (NACS) ports as a standard feature in their future R1 vehicles, as well as in the forthcoming R2 platform.
The announcement has been positively received by investors. Shares of Irvine, CA-based Rivian rose 5.5% yesterday, closing the session at $15.70.
In the broader landscape, this move aligns with a significant industry trend. It was Ford (F - Free Report) 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 (GM - Free Report) 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.
Rivian is the latest automaker to join the bandwagon. And it's not just the automakers, even the major charging companies have been shifting toward Tesla’s technology. This shift promises a more streamlined charging experience for EV drivers and potentially lucrative opportunities for investors.
EV Charging Revolution
The EV charging landscape is undergoing a seismic shift, largely characterized by a major move toward the adoption of Tesla's NACS port. Leading charging equipment manufacturers like Blink Charging, ChargePoint, EVgo, and Wallbox have announced plans to offer chargers featuring Tesla's connector, marking a significant turn away from the standard Combined Charging System (CCS) connector.
The shift in industry preference can be attributed to the user-friendly design of Tesla's NACS, which is more compact and lighter than its CCS counterpart. The new partnerships forged through this move are expected to allow the NACS port to command 60% of the U.S. EV market.
The sweeping shift toward Tesla's NACS port signifies a pivotal moment in the EV charging landscape. As technologies advance, industry stakeholders are uniting to evaluate and implement best practices, 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, not only for Tesla but also for the broader EV charging industry.
In conclusion, the latest announcement by Rivian to adopt Tesla's EV charging standard illustrates the company's strategic positioning in an evolving industry landscape. As technologies advance, industry stakeholders are uniting to evaluate and implement best practices, thus fostering a more efficient and user-friendly EV charging landscape.
RIVN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.