Texas will be the first US state to mandate Tesla (NASDAQ: TSLA) electric vehicle charging standard, Reuters reported, in a huge win for CEO Elon Musk who is working to make the system the industry standard.
The state will require electric vehicle charging companies to include the two Teslas (TSLA) North American Charging Standard (NACS) and the nationally recognized Combined Charging System (CCS) to qualify for a state program to electrify highways with federal funds.
Texas, home to Tesla’s headquarters (TSLA), said the growing adoption of NACS has caused state program requirements to change. DC fast chargers shall have a CCS connector and a NACS connector.
The development follows moves by Rivian (RIVN), General Motors (GM) and Ford (F) to include Tesla’s (TSLA) charging standard to their electric vehicles.
Texas’ decision could lead other states to adopt NACS, the report quoted Lew Cox, director of business development at MD7. “This will effectively make NACS the new charging standard.”
The new term marks another win for Tesla (TSLA), which is poised to benefit from China ~$72.3 billion in tax relief for electric vehicles over the next four years. China is Tesla’s (TSLA) largest market outside the United States
Add that to the musk hint to make Tesla (TSLA) available in India “as soon as humanly possible”. The statement was made during a meeting with Indian Prime Minister Narendra Modi, who is on a two-day trip to the United States. Note that US companies are increasingly looking to move supply chains away from China.
Tesla Stock (TSLA) climbed 1.6% before the bell.
The head of the investment group, JR Research, said Tesla’s NACS (TSLA) is “well-prepared” to assume leadership as the national charging standard. “With new pure-play charging players also adopting NACS sockets, Tesla’s lead will widen even further.”
