Charging Forward: Ford Leverages Tesla’s Superchargers
Shares of automotive giants Ford Motor Co. and Tesla Inc experienced a 4.72% surge on Friday, following Ford’s announcement of a revolutionary pact. The arrangement allows Ford’s electric vehicle (EV) users to access Tesla’s charging stations across North America, creating a wave of optimism in the EV industry.
Ford’s CEO, Jim Farley, spoke to CNBC about Tesla’s Superchargers’ potential to establish the benchmark for EV charging in the United States.
“With adapters and software, we really don’t have to make a choice right now what the standard is, but I think it’s going to play out in the free market,” Farley stated.
The impressive uptick in the afternoon trade saw Ford shares climb 6.24% to $12.09, while Tesla’s shares advanced 4.72% to $193.17.
US Transportation Secretary Pete Buttigieg expressed his support for the Ford-Tesla collaboration, saying on CNBC, “Tesla has built an extraordinary network… For them to be part of this effort I think is terrific news.”
He also clarified that the Biden administration has no plans to impose an EV charging standard.
Analysts acknowledge that access to charging stations is a significant impediment to wider acceptance of electric vehicles. Farley hinted that General Motors Co (GM.N) and other automakers will face a crucial decision between opting for Tesla’s EV chargers or the Combined Charging System (CCS), a rival fast-charging plug standard.
GM reportedly underscored the importance of open charging networks and standards in propelling EV adoption industry-wide, expressing its commitment to developing an open connector standard in the CCS, which it described as a “a truly universal solution”.
RBC Capital Markets analysts shared a note that read, “We believe the move will ultimately increase BEV (Battery Electric Vehicles) penetration in North America, and in a rising-tide-lifts-all-boats rationale, increase Tesla sales.”
Ford’s CEO revealed that the company has approximately 10,000 fast chargers and anticipates the Tesla agreement to double this number.
Since 2012, Tesla has been developing its Supercharger, a high-speed vehicle charger that can add up to 322 miles (518 km) of range in just 15 minutes.
Photo courtesy of Ford Motor Company.
