The EV Charging Divide: How Proprietary Networks and Partnerships Will Shape Automaker Dominance

The electric vehicle (EV) revolution is not just about cars—it's about infrastructure. As automakers race to secure market share, the choice between building proprietary charging networks or partnering with existing infrastructure has become a defining strategic fork. This decision will determine long-term profitability and dominance in the EV ecosystem. Let's dissect the stakes, the players, and where investors should place their bets.

The Tesla Model: Proprietary Networks as a Moat

Tesla's Supercharger network, with over 17,000 fast-charging ports in the U.S., remains the gold standard. Its North American Charging Standard (NACS)—a proprietary plug design—has become a de facto industry standard. Over 20 automakers, including Ford, GM, and Mercedes-Benz, now plan to adopt NACS in new EVs by 2025, with adapters provided for older models. This move cements Tesla's control over a critical infrastructure layer, leveraging its network to lock in brand loyalty and drive sales.

Why it works:
- Brand reinforcement: Tesla owners enjoy a seamless charging experience, reducing range anxiety.
- Data dominance: Tesla's network generates real-time usage data, enabling predictive maintenance and grid optimization.
- First-mover advantage: The Supercharger network's scale deters competitors from replicating it quickly.

The downside:
Proprietary networks require massive upfront investment. Tesla's recent slowdown in Supercharger expansion—due to layoffs and strategic shifts—hints at the financial risks. Meanwhile, automakers like Mercedes-Benz are building their own networks, but with only 2,500 planned fast-chargers by 2025, they lag behind Tesla's scale.

The Partnership Play: Scaling Without the Burden

While Tesla bets on control, most automakers are opting for collaboration. Kia, for example, now grants EV owners access to over 21,500 Tesla Superchargers via its Kia Access app, reducing the need to build its own network. Similarly, GM is transitioning all new EVs to NACS by 2025 but also partnering with Electrify America to expand fast-charging access.

Why it's strategic:
- Cost efficiency: Shared infrastructure avoids redundant investments.
- Wider coverage: Partnerships like Electrify America's adoption of NACS by 2025 will integrate Tesla's network into broader ecosystems.
- Consumer trust: Drivers gain access to more stations without brand allegiance, easing adoption barriers.

The Open Charge Point Protocol (OCPP) and government-backed standards like the Electric Vehicle Public Key Infrastructure (EVPKI) further incentivize interoperability. Automakers betting on partnerships can scale faster while avoiding the capital-intensive risks of proprietary systems.

The Critical Challenges

1. Infrastructure Gaps: The U.S. still lags, with only ~10,000 non-Tesla fast-chargers available. Rural areas remain underserved, and federal programs like NEVI face delays.
2. Dependency Risks: Automakers relying on Tesla's NACS risk ceding pricing and access control to Elon Musk's empire.
3. Technological Evolution: Future needs like bidirectional charging (vehicle-to-grid) will require infrastructure upgrades, favoring those with agile software ecosystems.

The Path to Long-Term Dominance

The winning strategy lies in hybrid models:
- Tesla: Its network is a moat, but its profitability hinges on maintaining NACS adoption while expanding into software (e.g., navigation updates for partner brands).
- Partnership-first players: Automakers like Ford (F) and Volkswagen (VLKAF) can thrive by leveraging shared networks while investing in proprietary software (e.g., charging app integration).

Investment Takeaways

1. Bet on Tesla's ecosystem: Tesla's network and NACS leadership give it a first-mover edge. Investors should track its Supercharger expansion and software monetization (e.g., charging fees for non-Tesla EVs).
2. Look for hybrid plays: Automakers like Ford (F) and Mercedes-Benz (DDAIF) that balance NACS adoption with partnerships and software innovation are safer bets for steady growth.
3. Avoid pure-proprietary bets: Automakers like Lucid (LCID) or Rivian (RIVN) without charging partnerships may struggle against Tesla's scale and partner networks.

Conclusion

The EV charging war is a battle for control over the customer's journey. Tesla's proprietary network is a formidable fortress, but partnerships and standards are democratizing access. Investors should prioritize automakers that blend NACS adoption with smart partnerships, agile software, and a focus on rural infrastructure. The future belongs to those who build bridges—not walls.

Final note: Monitor the rollout of EVPKI and federal grants under NEVI. These could accelerate the shift toward interoperability and penalize laggards.