How Tesla is calling the shots in the EV shift

Illustration: Sarah Grillo/Axios

The embrace by General Motors and Ford of Tesla's charging standard in future electric vehicles is a clear win for consumers, making charging easier and more accessible.

Why it matters: The EV pioneer faces increasingly stiff competition from traditional automakers. But Tesla is dictating the terms — and reaping the lion's share of the benefits — of America's historic shift to electric vehicles.

Driving the news: GM announced Thursday that, starting early next year, its EV owners will be able to use Tesla's network of 12,000 Superchargers (with the help of an adapter).

The intrigue: GM's and Ford's moves could trigger a chain of falling dominos — with other carmakers embracing Tesla's technology as well, essentially digging a grave for the engineering standard agreed to by most automakers in 2012.

Details: GM consumers will pay competitive rates for electricity at Tesla Superchargers, a GM spokesman said.

The big picture: The shift to electric vehicles, which currently account for around 7% of new car sales, is picking up steam, fueled largely by government incentives.

No company is better positioned than Tesla to exploit these EV-friendly policies.

The biggest worry among competitors is that Tesla will weaponize those lucrative incentives to further slash vehicle prices.

One example: A Model 3 starts at $40,240, but in California — the nation's largest EV market — the price may fall to $25,240 after the $7,500 federal tax credit and another $7,500 state tax rebate, depending on income and other requirements, per Reuters.

The bottom line: Other automakers are racing to catch up on EVs, but Tesla is still in charge.