Tesla’s North American Charging Standard (NACS) might just gain another partner in the auto industry. Hyundai’s CEO, Jaehoon Chang, recently stated that the South Korean automaker is seriously contemplating the adoption of the NACS for its vehicles.
This revelation comes amid Tesla’s dominant presence in the U.S. fast-charging market, with its Superchargers making up an estimated 60% of the nation’s fast-charging capabilities. Notably, Ford and General Motors have recently inked deals to employ Tesla’s charging technology.
However, Hyundai’s decision to join the alliance of automakers aligning with Tesla’s standard isn’t without its hurdles. The company, according to Chang, has to ensure that the move aligns with the interests of its customer base. Chang noted, “That’s what we will look into from the customer’s perspective.”
A major sticking point for Hyundai lies in the charging speed of Tesla’s Superchargers, which is currently lower than what Hyundai’s electric vehicles can accomplish with other chargers.
Hyundai’s latest electric cars, including the Ioniq 5, boast an 800-volt electrical architecture, enabling a faster charging experience. To address this, Chang suggested that Hyundai might liaise with Tesla about potential tweaks to the Supercharger system to facilitate quicker charging times for Hyundai customers.
Tesla’s open charging network isn’t just a generous move. To tap into the $7.5 billion subsidies offered by the Biden administration for charger deployment in the U.S, the automaker needs to extend its network to vehicles from other brands.
Additionally, a larger pool of electric vehicle drivers could bring extra revenue for Tesla through power sales. This strategy seems to be paying off already, as Tesla shares have surged over 40% since the announcement of its deal with Ford in late May.