OEMs: Don’t Abandon NACS in Wake of Tesla Layoffs

By Edward A. Sanchez — May 9, 2024

The Q1 job cuts at Tesla sent shockwaves throughout the automotive industry, particularly for those OEMs that have publicly committed to adoption of the Tesla-developed NACS protocol for the North American market (which is practically all of them at this point). This has resulted in many of the companies that made the commitment to NACS to reconsider their decision. Tom Moloughney, host of the excellent and informative State of Charge YouTube channel said he’s heard from an inside source at a major German OEM saying the company is considering abandoning its NACS initiative and returning to support for CCS1.

I understand the unease and confusion surrounding the layoffs at Tesla, and the bounced emails and lack of communication with now nearly nonexistent Supercharger team. I only comment as an outside industry observer and EV owner, but I would encourage OEMs that have committed to NACS adoption to stay the course through this period of uncertainty and chaos. I will explain my rationale below:

Specifications for NACS are Now Known and Standardized
Arguably in response to CharIN’s criticism of NACS not being a true “standard,” Tesla made the specifications for the protocol public source, which were then validated by SAE, and resulted in the formalization and standardization of the J3400 protocol. The standard is no longer Tesla’s “secret sauce.” Yes, it’s true that some collaboration, validation, testing, and software development is necessary for interoperability for other OEMs to use Tesla’s Supercharger.

To date, the only other OEMs that can officially use the Supercharger network in North America are Ford and Rivian. Many others are (or were) in the queue to get native access to the Supercharger network. Those that haven’t can still use locations with the Magic Dock and registration on the Tesla app, although the experience is nowhere near as seamless.

NACS Is an Indisputably Superior Form Factor and User Experience
Just a few weeks ago, I had my first experience using my CCS1-to-NACS adapter following the CCS hardware upgrade on my Tesla Model 3. Yes, it works, but it’s not the seamless, hassle-free experience of using the Supercharger network natively. Aside from having to separately validate payment, adding an additional step to the process, the experience starkly highlighted the form factor superiority (at least from a user’s standpoint) of the NACS plug and port over the heavy, bulky CCS1. As noted in my above post, on-paper, CCS1 maintains some advantages in life cycle durability, but that’s about it.

This Is the Opportunity for Charging Networks to Redeem Their Image
The third-party charging networks have taken it on the chin for their inconsistent quality control, spotty user experience, and neglected charge point maintenance. In and of itself, NACS will not magically fix those issues. But with the assumed increased adoption of NACS, at least the user experience, will be improved in terms of the physical form factor. Assuming they can improve the operation and reliability of their networks, the addition of NACS plugs to their network could give their image a boost.

The Supercharger Network Does Not Have to be a Monopoly
Pre-NACS, the Tesla Supercharger network was effectively a “walled garden,” an exclusive club available only to Tesla owners, as other EV owners were forced to contend with third-party charging networks and an inconsistent user experience.

Hypothetically, non-Tesla drivers now have access to the Supercharger network with the help of an adapter, with this now being a reality for Rivian and Ford drivers. To this point, Tesla aggressively built out the Supercharger network nationally, taking a decisive lead in the number of individual charging points.

Now, nothing is stopping third-party charging networks from installing native NACS plugs. This does not solve the issue of seamless interoperability of non-Tesla vehicles with Tesla’s Supercharger network. That remains an issue whose resolution is to be determined in the current absence of much of the Supercharger support team. But nothing is stopping the other charging networks from adopting and installing NACS at their charging points.

Time for the Automotive Industry to Take Off the ‘Tesla Training Wheels’
In the early 2010s, and honestly probably until the introduction of the Model 3 in 2017, the established legacy OEMs took a token approach to EV development for the most part. There was the Nissan Leaf, which deserves credit for being a pioneering vehicle in the space, and the Chevy Bolt, which despite its homely styling, was functionally excellent, aside from a bit of a public black eye due to the battery recall.

When the Model S came out, the general reaction was, “Impressive, but it’s only going to be a niche vehicle, and Tesla will remain a niche automaker.” As Model S sales continued to grow and it began out-selling industry standard-bearers such as the BMW 7 Series and Mercedes-Benz S-Class, the industry took notice. When the Model 3 was unveiled, the sense of panic became palpable as the industry’s collective complacency up to that point became apparent. Now that the Tesla Model Y crossover is the single best-selling model in multiple global markets, there’s no question that Tesla is a formidable player, despite a handful of disappointing quarter-to-quarter performances.

Tesla ignored the haters, skeptics, and cynics, and enjoys a position as the preeminent global EV brand. Chinese companies such as BYD, Nio, and the many Geely Group brands are coming up with compelling and unique EV models, that while for the time being are predominantly limited to the Chinese market, are poised to go into established Western and developed markets. Legacy OEMs are rightfully concerned about the coming wave of Chinese brands into established markets.

Tesla led the way, but it’s time for the rest of the industry to lean in. Tesla has shared NACS, as well as documentation on development of 48V vehicle architectures. Musk has probably privately uttered “What more do you want?” Many forget Tesla’s stated mission to “Accelerate the world’s transition to sustainable energy.” Between its automotive, battery storage, solar, and infrastructure initiatives, the company has gone a long way toward achieving that goal. But it shouldn’t fall on the shoulders of a single company to continue that work.

(Image courtesy Ford)