© Reuters. General Motors (GM) GMâ��s Mary Barra holds twitter meeting with Teslaâ��s Elon Musk to confirm EV charging collaboration
General Motors (NYSE:) and Tesla (NASDAQ:) shares are up 3.4% and 4.4%, respectively, in pre-market Friday after the two companies announced a collaboration to integrate the North American Charging Standard (NACS) connector design into its EVs beginning in 2025.
GM CEO Mary Barra also announced that GM customers will have access to an adapter that will allow users to access Tesla chargers starting early next spring.
“In order to drive EV adoption, we need to have a robust charging infrastructure,” said Barra.
“I want to emphasize that you have our full support and we’re incredibly excited to partner with you on this,” Musk added.
He added that Tesla wants to “make it a fantastic electric vehicle experience, whether somebody is driving a car from GM or Tesla.”
The partnership expands the accessibility of chargers for GM EV drivers by incorporating the extensive network of Tesla Superchargers, currently numbering 12,000 and expanding, across North America. This collaboration complements GM’s continuous efforts to invest in charging infrastructure, reinforcing their commitment to broadening charging accessibility in residential, commercial, and public areas. Moreover, it builds upon the existing 134,000 chargers already accessible to GM EV drivers through the Ultium Charge 360 initiative and mobile applications.
“Our vision of the all-electric future means producing millions of world-class EVs across categories and price points, while creating an ecosystem that will accelerate mass EV adoption,” said Barra. “This collaboration is a key part of our strategy and an important next step in quickly expanding access to fast chargers for our customers. Not only will it help make the transition to electric vehicles more seamless for our customers, but it could help move the industry toward a single North American charging standard.”
The announced collaboration follows a recent move by GM’s neighboring rival, Ford (NYSE:), who announced last month plans to provide drivers of Ford vehicles in North America with access to Tesla chargers. The move sparked discussions about the need for a standardized charging infrastructure across the United States and cast uncertainty on the future of struggling charging startups.
In addition to the EV charging collaboration, GM plans to integrate Tesla’s Supercharger Network into its vehicle and mobile apps. This integration will enhance the charging experience alongside the expanding Ultium Charge 360 Network of charging stations. GM will continue to provide access to additional charging stations through existing collaborations with various charging networks, further expanding charging options for GM EV drivers.
Citi analysts said the partnership is “somewhat more of a surprise than Ford/Tesla collab.”
However, the partnership is a step toward “improving consumer comfort w/ EV charging avail.” The deal is a “helpful step for GM EV positioning” and a “potential Supercharging rev. boost for Tesla,” they said.
Wedbush analysts hiked the price target on TSLA stock and commented:
“GM now follows its 313 rival jumping into the deep end of the pool with Tesla, as at the end of the day Tesla essentially owns the charging network ecosystem domestically and GM as well as Ford need access for success of its EV strategy and broader EV ambitions over the coming years.”
“For Tesla, we believe this is a large monetization opportunity for the company in its supercharger story, adding to its growing sum-of-the-parts valuation that we now peg at $300 per share with its developing energy business along with its well-established EV machine.”
Additional reporting by Senad Karaahmetovic
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