Introduction

Ford and General Motors Agreements

Last month, Ford announced it had signed a deal with Tesla that will allow the Detroit automaker’s EVs to use Tesla’s charging stations with a plug adapter. Investors cheered the news, with Tesla and Ford’s shares popping by 4.7% and 6.2% respectively, the day after the announcement. Both automakers’ stock prices have rallied by more than 25% since. TSLA GM,F 1M line General Motors also struck a similar deal with Tesla earlier this month.

Why Stellantis?

“When you look at the two, the Ford release and the GM release, they’re basically the exact same terms,” Narayan told AsumeTech Pro. “It really doesn’t make sense why it would be Ford and GM, and not Stellantis.”

Boosting Electric Vehicle Adoption

It is hoped that collaboration between Tesla and other automakers in the U.S. will boost the adoption of electric vehicles by improving access to the charging infrastructure. Narayan likened the situation to “a rising tide lifting all boats,” implying that an improved charging infrastructure will encourage more people to buy electric cars. This, in turn, would increase the demand for electric vehicles, benefiting all manufacturers involved. The below table shows analysts’ current potential upside for Tesla, Stellantis, Ford, and GM stock, according to FactSet data.

Impact on Tesla

Will the deal hurt Tesla? Narayan said the agreements show that Tesla is less worried about losing customers to other electric vehicle manufacturers. Instead, it is focused on attracting potential customers who are still buying traditional gas-powered vehicles and convincing them to switch to electric.

Overcoming Range and Charging Anxiety

Narayan also said that collaborations with Tesla could set a new standard in the automobile industry. Opening Tesla’s extensive and reliable charging infrastructure in the U.S. to other brands could play a significant role in overcoming range anxiety, or the fear of running out of charge before reaching a charging station.

De Facto Plug Standard

Narayan expects all car makers to eventually adopt Tesla’s supercharger infrastructure, setting a precedent for smaller manufacturers to follow suit and potentially making the Tesla charging standard ubiquitous.

Global Automakers

Looking ahead, Narayan predicts that more European manufacturers, such as Mercedes, BMW, and Volkswagen, will sign similar agreements with Tesla in the United States.

Conclusion

By partnering with Stellantis, Tesla aims to further expand its supercharger network and accelerate the adoption of electric vehicles. The collaborations with Ford, General Motors, and potentially other European automakers signal a shift towards a unified charging infrastructure, benefiting the entire industry.