Ford Tesla EV charging deal puts pressure on GM
DETROIT – A surprise deal between Ford Motor and Tesla on 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 across the U.S. and Canada, starting early 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.
The agreement will make Ford among the first automakers to explicitly tie into the network.
Ford CEO Jim Farley and Tesla CEO Elon Musk announced the deal Thursday during a live audio discussion on Twitter Spaces. On Friday morning, Farley acknowledged the tie-up would create challenges for Ford's rivals.
"I think GM and others are going to have a big choice to make," he said on CNBC's "Squawk Box."
Farley's comments referenced which EV plug should be standard for charging in the U.S. A charger known as CCS is the industry norm now. Tesla vehicles and its Supercharger network use what's known as NACS. Other vehicles can use both, but they need an adapter.
"The CCS is a great standard, but it was pretty much done by kind of a committee, and I think GM and others are going to have a big choice to make," Farley told CNBC. "Do they want to have fast charging for customers? Or do they want to stick to their standard and have less charging?
Ford's stock rose more than 7% during Friday trading, above $12 per share. Tesla's stock climbed more than 5%, topping $194 a share.
Source: CNBC
