Yahoo Finance Tesla strikes charging deal with Hilton, Honda to join Supercharger network
Tesla's charging deals have meant more pain for network operators like ChargePoint
Two more big partners have signed up with Tesla’s (TSLA) charging network, opening up more charging availability for Tesla owners and cars equipped with NACS (North American Charging Standard) compatibility.
Starting in early 2024, hotel operator Hilton will install 20,000 Tesla Universal Wall Connector plugs at 2,000 of its hotel locations in the US, Canada, and Mexico. Hilton (HLT) says this project will make its EV charging network the largest of any hospitality company. Hilton currently has chargers at 1,850 Hilton-branded hotels globally.
Hilton, which operates its namesake brand as well as Embassy Suites, Hampton Inn, and DoubleTree, among others, says that customers are increasingly looking for EV chargers while traveling, with search volume on the company’s website for EV charging growing fastest year to date, jumping from fourth to second highest in converting searches to stays. Hilton has said previously that access to an airport shuttle from a hotel location was the top search query leading to room booking.
The Tesla Universal Wall Connectors that Hilton is using are different from Tesla’s Supercharger Network, which offers faster DC charging, while the wall connectors offer cheaper, but slower, AC charging.
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"A key priority for Tesla Charging is installing low-cost, convenient AC charging anywhere electric vehicles are parked for more than an hour or two," said Rebecca Tinucci, Tesla senior director of charging infrastructure, in a statement. "Installing infrastructure at popular destinations, like Hilton hotels, enables EV owners to charge where they park, meaning no unnecessary refueling stops along their journey."
Turning back to Tesla’s dominant Supercharger network, the EV maker notched another big automotive partner on Thursday as well, with Honda (HMC) announcing it will implement the NACS plug in its new EVs starting in 2025, meaning native access to Tesla’s Supercharger network.
Honda says it will offer an adapter plug in 2025 for its older EVs using the CCS standard for backward compatibility; however, unlike other Tesla charging partners like GM, Ford, and Mercedes, Honda won’t gain access to the network until 2025, whereas the other partners will gain access to the Supercharger network early next year.
News of another major automaker joining the Tesla Supercharger network is a fresh blow to network operators like EVgo, ChargePoint, and Blink — companies that have tried to stay agnostic in the charging wars, but have now all decided to include some NACS plugs at their stations to accommodate the seemingly growing number of cars that can use the Tesla charging standard.
Operating a charging network is an expensive business due to high upfront costs and generally low utilization rates, at least thus far in the EV evolution happening in the US.
Charging network operator ChargePoint (CHPT) is the latest to offer a sobering assessment of the market, with the stock cratering following a weaker-than-expected earnings report.
ChargePoint reported a Q2 net loss of $125.3 million, a bigger loss than what the Street was expecting, and deeper than the $92.7 million the company lost last year. The company’s margins compressed significantly due to inventory impairment and supply chain-related costs stemming from DC fast-charging projects, though revenue did climb 39% from a year ago.
ChargePoint did say that it still expects to achieve positive adjusted EBITDA in Q4 of next year, though it announced a 10% reduction in its global workforce in order to preserve liquidity.
ChargePoint competitor Blink Charging (BLNK) noted that costs associated with replacing legacy chargers have become a “burden” due to their outdated technology and reliability issues — a common complaint among users of charging networks and their automaker partners. Blink CEO Brendan Jones said the industry also made mistakes by installing chargers in non-ideal locations, among other issues.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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