After a product becomes the standard, eventually everyone believes that it was the standard all the time. The assumption is wrong, even though all products have some sort of industry lobbying group, but the process to make something standard makes and losses money for many investors. The classic case is VHS and Beta cassettes were introduced and each of them had their positive aspects, but a consumer needed to buy a machine for each. Then the machines evolved to play both and consumers did not pay attention to whether the video was VHS or Beta. Behind the scenes, each of the companies had spent millions of dollars on both the videos and the machines and the companies were JVC and Sony, both Japanese companies. One was a leader then came compact dics and now streaming, which means fewer people use either VHS or Beta.

In an article from Reuters, Ford CEO Jim Farley announced Ford had reached an agreement to use Tesla’s supercharger system. Tesla has built up superchargers in malls, hotels and office buildings but they only charge on Tesla. In the agreement, Telsa will allow Ford electric vehicle owners to book an appointment at their charges and use them. Ford will supply the users an adaptor and all will be good to the consumer. It was announced in early June, GM would follow Ford with Tesla charging adaptors.

In every new industry, there are multiple methods to do what the task is required and companies have to choose one of them. US Transportation Secretary Pete Buttigieg said the Biden administration would not dictate an EV charging standard. The two largest systems at the moment are Tesla’s EV charges and the Combined Charging System (CCS). Access to charging systems is considered one of the hurdles to broad acceptance of electric vehicles.

Linking to dividend paying stocks, one of the reasons you like them is they tend to be industries where the standard is set and the companies are profitable and can pay dividends. The company can work on enhancements, but not changing the standards. All new industries face what will be the standard? waiting till the standard is set tends to be less risky for investors.

There are more questions than answers, till the next time – to raising questions.