On Thursday General Motors (GM) announced that it will be partnering with Tesla (TSLA) to offer access to Tesla’s Supercharger network to its customers. The announcement comes just a couple of weeks after Ford announced it had joined with Tesla to enable Ford vehicles to be able to access Tesla’s charging network.
In a press release, GM CEO Mary Barra said, “This collaboration is a key part of our strategy and an important next step in quickly expanding access to fast chargers for our customers.”
She added, “Not only will it help make the transition to electric vehicles more seamless for our customers, but it could help move the industry toward a single North American charging standard.”
Both GM and Tesla shares jumped in afterhours trading on the news, as GM rose up to 4% and Tesla rising over 2%.
Beginning in 2024, GM drivers will be able to access the Tesla Supercharger Network, although they will initially have to use an adapter. However GM plans to use an NACs inlet on its EVs by 2025, which will give its customers direct access to the chargers.
The expanded charging access will aid GM with its plans to electrify its product line.
In the company’s first quarter letter to shareholders Barra wrote, “We plan to produce 400,000 EVs over the course of 2022, 2023, and the first half of 2024, including 50,000 EVs in North America in the first half of this year, and double that in the second half.” In the first quarter the automaker delivered 20,000 EV’s.
For Tesla, the deal offers the opportunity to leverage its industry-leading status in the EV sector as it sees demand for its vehicles begin to come under pressure from a declining economy and an increasingly crowded field of competitors on the global stage.
Industry analysts predict Tesla’s partnering with companies like Ford will be a positive for the company’s top line going forward.
In a note following the Ford deal, Goldman analyst Mark Delaney wrote, “Recall in our 2022 report that we sized the potential for Tesla opening its network more widely in the next few years (i.e. more than just Ford) at $1-$3 bn of incremental revenue (although Tesla wouldn’t necessarily capture all of this). We believe the news is a modest incremental positive for Tesla as it will likely bring in additional profits and help Tesla to sustain the most robust charging network, albeit with some risk of fewer vehicle sales.”
