In a significant development for the electric vehicle (EV) market, Ford Motor Co witnessed a surge of more than 7% in its shares on Friday. The second-largest automaker in the United States announced a groundbreaking deal that allows its electric-vehicle owners access to Tesla Inc’s charging stations across North America.
Ford CEO Jim Farley expressed his belief that Tesla’s Superchargers could potentially become the standard for EV charging in the United States. He acknowledged that, at present, there is no immediate need to make a definitive choice regarding the charging standard. Farley stated that with the aid of adapters and software, the industry can observe how the market dynamics play out and determine the most effective approach.
Following the announcement, Ford shares experienced a notable increase of 7.6%, reaching $12.25 during afternoon trade. Simultaneously, Tesla shares also rose by 7.5% to $197.95.
Transportation Secretary Pete Buttigieg commended the Ford-Tesla collaboration, emphasizing that the Biden administration would not impose a specific EV charging standard. He lauded Tesla for establishing an extraordinary network of charging stations and expressed his enthusiasm for their involvement in this joint effort.
Analysts have long identified access to charging stations as one of the key obstacles hindering the widespread acceptance of electric vehicles. By expanding the charging infrastructure and fostering cooperation between manufacturers, this collaboration aims to alleviate this concern.
Jim Farley further noted that General Motors Co and other automakers face a significant decision in choosing between Tesla’s EV chargers and the Combined Charging System (CCS), a competing DC fast-charging plug standard. General Motors has advocated for open charging networks and standards, promoting an inclusive approach that enables EV adoption across the entire industry. The company, alongside other automakers, has collaborated on developing the CCS, an open connector standard that provides a universal solution for fast charging.
In response to the Ford-Tesla deal, RBC Capital Markets analysts expressed their optimism, suggesting that it would ultimately boost the adoption of Battery Electric Vehicles (BEVs) in North America and also have a positive impact on Tesla’s sales.
Tesla has been at the forefront of EV charging since 2012 when it introduced its own high-speed vehicle charger, the Supercharger. Capable of adding up to 322 miles (518 km) of range in just 15 minutes, Tesla’s Superchargers have significantly contributed to the growth of the EV market.
Farley revealed that Ford currently possesses around 10,000 fast chargers and that the agreement with Tesla will effectively double that number, resulting in a substantial expansion of the charging infrastructure. This development brings us closer to a future where EV owners can access charging stations conveniently and reliably.
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