Detroit – A surprising deal between ford motor And Tesla Electric vehicle charging technology and infrastructure could put new pressure on other automakers’ EV strategies.
The tie-up between the two rivals will give Ford owners access to more than 12,000 Tesla Superchargers in the US and Canada as early as next year. More importantly, Ford’s next generation of EVs — expected by mid-decade — will use Tesla’s charging plug, allowing owners of Ford vehicles to charge at Tesla Superchargers without an adapter.
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The agreement will apparently make Ford one of the first automakers to join the network.
Ford CEO Jim Farley and Tesla CEO Elon Musk announced the deal Thursday during a live audio discussion Twitter Space. On Friday morning, Farley acknowledged that the tie-up would create challenges for Ford’s rivals.
“I think GM and others have a big choice to make,” he said on CNBC’s “Squawk Box.”
Farley’s comments referred to which EV plug should be the standard for charging in the U.S. A charger known as the CCS is now the industry norm. Tesla vehicles and its Supercharger network use what is known as NACS. Other vehicles can use both, but they require an adapter.
“CCS is a great standard, but it was largely done by a committee, and I think GM and others will have a big choice to make,” Farley told CNBC. “Do they want fast charging for customers? Or do they want to stick to their standard and charge less?
Ford’s stock closed Friday up 6.2% at $12.09 per share. Tesla shares also rose 4.7% on Friday, ending the week at $193.17.
RBC Capital analyst Tom Narayan said the Ford-Tesla deal could be near-term negative for GM, Stellantis and other automakers that do not have access to such fast chargers, which are critical to expanding EV adoption. It is believed.
“The news today is certainly positive for Ford shares (and potentially negative for GM/STLA), but ultimately, we think it’s best to look at it as a long play for Tesla,” Narayan said in a Friday investor note. to be seen.”
Tesla says it has about 45,000 Supercharger connectors around the world at its 4,947 Supercharger stations. The company doesn’t say how many are in the U.S. The U.S. Department of Energy reports that there are only about 5,300 CCS fast chargers in the country.
General MotorsWithout specifically addressing Farley’s comments, Friday said it “believes that open charging networks and standards are the best way to enable EV adoption across the industry.” GM said it is working with a group of companies and SAE International, formerly the Society of Automotive Engineers, to develop and continue to develop an open connector standard for the CCS, which is “an open way of fast charging.” important to building the network. All over North America.”
The Detroit automaker has announced several partnerships with EV charging providers and has lobbied for more federal support for such infrastructure.
Farley said Thursday that Ford is “fully committed” to a US charging protocol that includes the Tesla plug port.
Musk, when announcing the deal with Farley, hinted at other automakers being able to use the Tesla Supercharger network and Company’s charging port.
“Working with Ford, and maybe others, to make this a North American standard, I think consumers will be better for it,” Musk said Thursday.
An all-electric Ford Mustang Mach-E at a Tesla Supercharger station charging.
Tesla has previously discussed opening its private network to other EVs. White House officials announced in February that Tesla committed to opening its 7,500 charging stations to non-Tesla EV drivers by the end of 2024.
Public charging of electric vehicles is a major concern for potential buyers, and no automaker other than Tesla has successfully built its own network. Instead, they have announced partnerships with third-party companies that have often proved unreliable and frustrating for owners.
Most American drivers log vehicle miles from home to nearby locations. But EV buyers who want to take long road trips, or who don’t have access to garages with chargers, often worry about access to reliable, public charging.
The problem is getting worse: at least 1 attempt by drivers to charge failed last year A study on public duty released last year by JD Power.
Tesla’s Superchargers were ranked best for overall customer satisfaction, according to a separate new study by JD Power.
Wall Street bullish
Wolfe Research analyst Rod Lash called the deal a “win-win” because it doubles Ford’s customers’ access to fast chargers and increases Tesla’s network usage.
“For Ford, access to Tesla’s network helps solve a major pain-point for their EV customers, who otherwise have to use third-party charging providers,” he said in a Friday investor note. “Meanwhile, for Tesla, adding Ford customers will help boost network utilization, a key driver of profitability.”
Jim Farley and Elon Musk
Morningstar analyst David Whiston said the deal is a big boost for Ford and its customers to have access to fast-chargers. He added that it “puts some pressure on other older automakers but if you’re a person like GM, I don’t think you need to panic.”
Whiston said he would like to know more about the deal, such as cost, length and other details that were not announced.
A Ford spokesman said more details about the agreement will be announced closer to when Tesla’s chargers open to Ford owners early next year.
Clarification: This story has been updated to clarify that SAE International was formerly known as the Society of Automotive Engineers.