If you can’t beat ’em, join ’em.
Ford
‘s deal to use
Tesla
EV chargers left investors wondering what
General Motors
would do. Now they know: GM will use Tesla’s network too.
GM (ticker: GM) said Thursday its EVs will be able to access the Tesla (TSLA) supercharging network in 2024. The deal looks similar to one Tesla and Ford Motor (F) announced in May.
GM stock was up 3% in after-hours trading, while Tesla shares rose 3.4%, building on a gain of 4.6% in regular trading. It was the tenth consecutive rise for Tesla stock.
GM also said it would adopt the North American Charging Standard, or NACS, in 2025. That’s Tesla’s plug.
The plug isn’t a big deal. This isn’t analogous to the battle between Betamax and VHS. A better analogy is
Apple
(AAPL) and
Samsung
(005930.Korea).
Phone owners might not like juggling lightning ports and c-ports, but the plugs both companies use channel the same electricity. All that any of these chargers need is an adaptor.
The standardization the GM and Ford deals bring means that drivers won’t end up like phone owners with a bunch of cables and adapters piling up. It is positive news, but don’t expect it to mean a lot of money or EV market share for anyone.
Tesla will benefit, taking a role like that of the the gas station in the internal-combustion-engine world. Tesla owners pay when they plug into a Tesla charger. So will Ford and GM drivers.
Expanded charging access could bring $1 billion to $3 billion in annual sales to Tesla. according to an older estimate from Goldman Sachs analyst Mark Delaney.
For GM, it means better charging access for EV owners, a key for anyone considering buying an EV.
The U.S. is a little deficient in EV charging. China has about 12 EVs on the road for every fast charger, while the U.S. has about 50, according to Bloomberg BNEF and Barron’s calculations.
Fast chargers, like the ones Tesla owns and operates, aren’t for everyday charging, but they are a good option for road trips. EV owners should generally charge at home because residential electricity rates are cheaper.
The deal is good for GM and for Tesla. It also highlights that traditional EV companies are all in on EVs.
Stock in ChargePoint (CHPT) was down more than 5% in after-hours trading, but the public charging company should be fine. There is a lot of infrastructure to build as the U.S. makes the transition away from internal-combustion enginers. After all, a lot of gas-station brands that have thrived in the U.S. since Ford introduced the Model T.
Write to Al Root at [email protected]
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