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Tesla CEO Elon Musk makes a Proposal to Toyota

Elon Musk

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The recognition that Tesla’s billionaire CEO has been waiting for for years finally came to him lately. That the big American car companies know that Tesla is now at the center of the business and is the leader.

Ford (F) – Get Free Report and General Motors (GM) – Get Free Report, two of Detroit’s “Big Three,” thought they could stay on top despite Tesla’s high market value, which was a clear sign that the old guard was being replaced. But 20 years after the electric vehicle manufacturer was founded, the two big car companies finally accepted that the disruptor is now the industry standard.

This was shown by two deals that had never been made before. Starting in 2024, customers of GM and Ford will be able to charge the batteries of their electric cars using the Tesla supercharger network. This network has about 17,000 stations across the United States, making it the biggest network of charging stations in the country. But people who buy cars from GM and Ford will only be able to use 12,000 superchargers.

Supercharger and EV Connectors

“Superchargers can extend a vehicle’s range by up to 200 miles in just 15 minutes. Stops are often brief and convenient because charging above 80% is rarely necessary, according to Tesla’s website.

In light of this, Tesla’s charging connector, which connects the electric vehicle to the charging station, has been adopted by Ford and GM. The only item owners of the two Michigan giants will need to buy is an adaptor, which will run them about $100.

This is a major victory for Elon Musk and Tesla (TSLA) – Get Free Report, not only because they have discovered a new source of income, but also because their EV charging outlet is about to become the industry standard. In North America, there are now two charging standards. There is the Combined Charging System (CCS) and the North American Charging Standard (NACS) from Tesla. All other automakers employ the latter, which makes use of a slow-charging port.

The public charging network, which according to the Energy Department presently includes 54,000 locations, connects to the CCS as well. The issue with the public charging network is that there aren’t many fast chargers available, which makes it difficult to swiftly recharge your battery. There are 7,400 superchargers at public stations that use CCS in total.

No other automaker has joined Tesla and Musk except from Ford and GM. But the businessman has simply taken the initiative and asked Toyota to join the new alliance with Tesla. The invitation was sent via Twitter after a user noted a news report demonstrating how difficult it was to charge the batteries of Toyota’s new all-electric SUV during a journey.

According to Sawyer Merritt, a self-described Tesla investor and fan, “Business Insider drove the new Toyota bZ4X EV from New York to Washington DC, and back,” he posted on Twitter on June 14. “There were 3 hours of charging during the 9-hour trip. The bZ4X would not accept a charge at a rate of more over 35 kW, even at 37%.

He said, including a link to the story, “A [Tesla] Model Y would need to charge a total of maybe 30 mins the entire trip.”

Musk then used the chance to urge Toyota to follow in the footsteps of GM and Ford.

The Techno King, as he’s called at Tesla, said, “They ought to join the NACS coalition.”

Will Toyota Say Yes?

When asked for a response, Toyota (TM – Get Free Report) didn’t answer right away.

Musk’s offer comes right after the Japanese car company said it would speed up the development of electric cars with batteries that could last for 600 miles (1,000 km). That is a lot more than what Tesla has right now.

If the Japanese group decides to take the Tesla CEO up on his offer, it should push other car companies like Kia (KIMTF), Hyundai, and Stellantis (STLA) – Get Free Report to do the same so they don’t fall behind in the market.

Volkswagen (VWAGY) – Get Free Report is one of the few car companies that has said it will stick with the CCS charger for now. In fact, the German company is building its own network, which has 840 charging points as of now. By 2026, this number is expected to have doubled.

One of the most important parts of the growth of electric cars is the charging network. The advantage goes to the car company that makes batteries that can last a long time, so that drivers can go far on a single charge, has a large network of charging stations, and makes it easy to charge the battery fast. This is one of Tesla’s strengths, which helps it lead the market right now.

By letting its competitors use its network, Tesla agrees to lose some of its benefit, but it also gains a big source of income and becomes the leader because its connector becomes the standard.

Musk said on June 14 that they built the Supercharger network because no one else was doing it.

Now, the forced choice has paid off greatly.

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