Hyundai Contemplates Entering Tesla's Electric Vehicle Charging Network

Hyundai intends to allocate $28 billion in the upcoming decade to accelerate its electrification endeavors and is contemplating embracing Tesla's (TSLA) charging infrastructure for all forthcoming electric vehicles.

Key TakeAway

• Hyundai is set to invest 35.8 trillion won ($28 billion) in the forthcoming decade to accelerate its electrification initiatives.
• The corporation is contemplating the integration of Tesla's charging infrastructure, the North America Charging Paradigm (NACP), for all upcoming electric vehicles.
• Tesla has forged alliances with Ford and General Motors in recent weeks, expanding access to its charging network for a wider array of electric vehicle owners.

Addressing attendees at Hyundai's 2023 Investor Day in Seoul, CEO and President Jaehoon Chang expressed that the company would evaluate the possibility of joining the consortium of automakers embracing Tesla's charging protocol, on the condition that it aligns with the best interests of its customers. Hyundai's objective is to raise the electric vehicle proportion to 34% by 2030, a significant increase from the current 8% figure.

One hurdle that Hyundai faces is that its latest electric vehicles, such as the Ioniq 5, operate at a higher voltage compared to Tesla's, which means they may not be compatible with the fast charging rate that Hyundai EV drivers are accustomed to. The CEO of Hyundai has expressed his intention to consult with Tesla to explore the feasibility of introducing a faster charging option. In the United States, Tesla's supercharger network accounts for approximately 60% of all electric vehicle charging stations.

Tesla has been actively expanding its partnerships with other electric vehicle manufacturers in recent months, including collaborations with two of the top three automakers in the United States. In May, the company reached an agreement with Ford (F), granting Ford EV drivers access to 12,000 Tesla Superchargers, while all future Ford electric vehicles will feature an NACS charging port. Just earlier this month, Tesla also agreed to open its charging network to General Motors' (GM) electric vehicles.

For Tesla to become eligible for a portion of the $7.5 billion in subsidies, allocated by the Biden administration to expedite the implementation of charging infrastructure across the United States, it is imperative that Tesla grants access to its charging network to other automakers.