There might be another compelling reason to visit Costco (NASDAQ:COST), aside from its affordable pizza and industrial-sized condiments. The much-loved bulk wholesaler is entering the EV charging business and recruiting SpaceX engineers to help them achieve it.
According to electric vehicle news site Electrek, Costco will open its first EV charging stall at its Northport, Florida location in conjunction with an electric charging company Electric Era. If it were to implement the practice nationwide, it could significantly impact electric car sales in the U.S.
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Using SpaceX Engineers For Fast EV Charging
One of the drawbacks to EV adoption in the U.S. is the limited charging infrastructure and slow charging speeds. That's why the big box warehouse has collaborated with Electric Era, which was founded by former SpaceX engineers. The company provided Costco with six EV fast-charging stalls in just 54 days, according to Elektrek, capable of charging most car and SUV batteries in 20-60 minutes, just enough time to fill a shopping cart full of jumbo-sized groceries and fill a prescription or two.
Trump's Cut In EV Charging Funding Was A Major Blow
Electric vehicle sales have been steadily rising in the U.S., but President Donald Trump's decision to cut funding for new EV charging infrastructure was a significant drawback for EV adoption in the U.S. Bloomberg reduced its expectations for installations from 360,000 to 285,000 units.
"If we continue in this direction, [BloombergNEF's] outlook for annual US charger installations in 2030 could be adjusted downward by 30% or more," Bloomberg analyst Ash Wang said, pointing to a possible long-term impact if the current pace doesn't pick up.
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However, the question of infrastructure funding remains unresolved, after a federal judge recently ordered the Federal Highway Administration to resume distributing funds to install EV chargers in 14 states.
Tesla Still Has A Monopoly On EV Charging
The lack of charging infrastructure in the U.S. beyond Tesla (NASDAQ:TSLA) chargers has made many drivers hesitant to buy EVs. However, installing fast chargers at grocery stores has proven to be a winning strategy, with retailers turning a profit on charging stations for the first time since installing them, according to EV Charging Summit. Thus, it makes sense for Costco to take action with their nationwide reach and massive popularity. As of June 15, there were 630 Costco warehouses in the U.S.
Tesla And EV Adoption
Despite Tesla CEO Elon Musk's flirtation with politics, Tesla is by far the most popular EV car manufacturer in the U.S., according to CleanTechnica. Its fast chargers limit charging times and are in strong demand, which is why it has partnered with Hyundai, Kia, Chevrolet, Cadillac, Honda, Acur, and others to allow them to use their chargers with the use of an adapter. This is particularly useful for EV car owners who don't have a home charger. Costco's vast parking lots could become an essential component in winning the EV charging battle.
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