Shares of Tesla (NASDAQ:TSLA) are up 1.21% in pre-market trading Wednesday after the Texas Department of Transportation announced late Tuesday that the state would require electric vehicle charging companies to include both Tesla's standard as well as the nationally recognized CCS if they want to be part of a state program to electrify highways using federal dollars.
Texas is the first state that will mandate Tesla's charging technology, encouraging Tesla CEO Elon Musk to continue his push to make the Tesla-designed North American Charging Standard (NACS) the national charging standard.
"The decision by Ford, GM, and now Rivian to adopt NACS changed requirements for Phase 1" of the rollout, the Texas Department of Transportation said in an email Tuesday. The department also added that the state will require current fast chargers to have one CCS and one NACS connector.
Earlier this year, the U.S. Department of Transportation mandated that charging companies must offer CCS in order to qualify for up to $7.5 billion in federal funding. This funding aims to facilitate the construction of new, high-speed chargers along 7,500 miles (12,070 km) of the nation's highways.
The Federal Highway Administration on Tuesday acknowledged the industry was rapidly evolving.
"Our technical experts are having active conversations with automakers, charger manufacturers, and standards setting bodies to ensure federal investment continues to support a reliable, convenient, and user-friendly charging experience for all drivers," the spokesperson said.
The federal funding is being allocated to the states, granting them the authority to customize their own guidelines while adhering to the minimum federal requirements. It is anticipated that states will distribute the first round of funding throughout the remainder of the year.
Shares of TSLA are up 1.21% in pre-market trading on Wednesday.