Proactive Investors - The Texas Transportation Commission on Wednesday unanimously approved a plan to require charging companies to include Tesla Inc (NASDAQ:TSLA)’s technology in electric vehicle (EV) charging stations to be eligible for their share of more than $400 million in government subsidies.
The government’s plan to make Tesla’s North American Charging Standard (NACS) mandatory was first revealed in June, but a vote on the issue was deferred twice amid opposition from some charging companies who cited concerns including about the supply chain and the certification of Tesla’s technology.
On a federal level, companies are required to offer the Biden administration preferred Combined Charging System (CCC) as a minimum requirement to be eligible for the subsidies.
However, individual states are able to add their own requirements on top of the CCC before handing out the funding.
Several other states, including Washington, are reportedly considering similar plans.
Texas’ approval of its plan is a significant milestone for Tesla CEO Elon Musk’s efforts to establish the EV-maker’s technology as the charging standard in the United States.
Automakers seem on board, with Fisker, Ford, General Motors (NYSE:GM), Mercedes-Benz, Nissan, Polestar, Rivian, and Volvo all having announced that starting from 2025 their EVs will be equipped with the NACS charging port.
According to CleanTechnica, the manufacturers of more than three-quarters of the EVs have committed to using the NACS.
Tesla shares traded flat following the news at US$225.38. The stock is up 108.4% in the year to date.