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Tesla headquarters has approved the plan to acquire the companies to include the EV maker’s technology in electric vehicle (EV) charging stations to be eligible for federal funds, despite calls for more time to re-engineer and test the connectors.
This decision by Texas is being closely watched by other states as it is also the biggest recipient of a $5 billion program meant to electrify US highways. The decision is also a step closer to CEO Elon Musk’s plans to make its tech the US charging standard.
The EV manufactures are facing some early tests as the states have started rolling out the funds. The company won a slew of projects during the first round of funding in Pennsylvania but bagged none in Ohio.
Federal rules require the companies to provide Combined Charging System (CCS) – a US standard that has been favoured by the Biden administration – to its rival, in order to be eligible for the funds. However, the individual states have the liberty to add their own requirement apart from CCS before distributing the federal funds at a local level.
Over two months ago, Ford Motor and General Motors’ announced that they have planned to adopt Tesla’s North American Charging Standard (NACS) sent shockwaves through the industry and prompted a number of automakers and charging companies to embrace the technology.