Market Update 12/6: Tesla vs Ford vs GM in the EV War


Tesla charging tech will be integrated into the next generation of electric vehicles from two legacies U.S. automakers, starting in 2025. This week, GM followed Ford’s lead.


Tesla charging tech will be integrated into the next generation of electric vehicles from two legacy U.S. automakers, starting in 2025. This week, GM followed Ford’s lead.


Supercharging stations, Tesla’s largest charging network in North America, provide reliable charging away from home for Tesla owners, but broader charging connectivity has been fragmented, making things more challenging for non-Tesla owners.

Ford and GM's charging partnerships with Tesla and what they mean for EVs Industry



GM and Ford signed agreements with Tesla to allow their EV owners access to Tesla Superchargers and eventually integrate Tesla’s charging technology into their vehicles. In addition, it fuels rivalry between companies and consumers when it comes to charging standards.



It is clear that the deals will have an impact on the reliability of EVs and their mass adoption.


Ford announced last month that it will allow Ford EVs to use Tesla’s charging stations with an adapter in early 2024. It also announced that it will make Tesla’s charging technology standard on its own EVs starting in 2025. The partnership between rivals was surprising, and GM announced a near-identical deal with Tesla on Thursday.


That change presented a shortcut to saving both for Ford and General Motors, as well as the potential for large savings in the long run.



“We think we can save up to $400 million in the original three-quarters of a billion dollars that we allocated to this, because we’ve been able to do it faster and more effectively,” Barra, CEO of GM.

What does it mean for EVs and Charging Stations?


Tesla’s Superchargers use a proprietary plug design called the North American Charging Standard, or NACS, which does not work with non-Tesla EVs, unlike most other EVs and charging stations in the U.S. that use the public domain Combined Charging System (CCS). The CCS charger can be used with Tesla EVs with an adapter, but the NACS charger can only be used with Tesla.  


According to Tesla, there are approximately 45,000 Supercharger connectors worldwide at 4,947 Supercharger Stations. However, the company does not specify how many are in the U.S. On the other hand, according to the U.S. Department of Energy, there are only about 5,300 fast chargers in the country.


Ford and GM, however, have had difficulty ramping up their own EV sales due to the spottiness and low reliability of the CCS network. One of the main reasons why Tesla’s NACS standard is preferred over CCS is that Tesla’s plugs are much smaller and lighter than the CCS plugs, which can be a deal breaker for older or disabled drivers

“The most important thing is that we’ve witnessed the electric vehicle revolution,” Musk said.


Due to the deals, Tesla’s chargers will soon be the U.S. standards.  


In total, the three companies contribute 70% of the sales of electric vehicles in the country. With this announcement, three of the top EV sellers in the North American market have agreed on a charging hardware standard.


Keep your friend close but your enemy closer.


There is a possibility that the deal will work as a double-edged sword.  


In a similar fashion to Ford-Tesla, GM-Tesla is expected to benefit both companies. The initiative is expected to more than double GM and Ford’s access to fast charging stations and increase Tesla’s network usage.


“Tesla is in a massive position of strength after building its EV castle and now is set to further monetize its success,” Wedbush analyst Dan Ives wrote in a Friday note to clients, pointing to the company’s increasing ability to bring in revenue outside of EV sales. Furthermore, he upped Tesla’s price target by 40% to $300, calling it a “large monetization opportunity.”


For GM and Ford, the deals are a wager that Tesla’s extensive rapid charging network will outweigh the risks that their consumers will like what they see and choose Tesla for their next car purchase.


As Tesla gains from the partnership with increased traction from the station usage, it also can lose from it as its owners might switch from Tesla to Ford or GM due to the benefit of its network with other brands. 

Investor reactions: how do they react?


It’s an uproar in the EV industry as Tesla said Thursday afternoon it will open its Supercharger network to General Motors electric vehicles, following a similar announcement for Ford EVs two weeks ago.



Tesla shares jumped 4.06% to $244.40, setting a fresh eight-month high, as a result of the new news on June 9. As a result of the Ford charger deal announced on May 25, Tesla stock has gained more than 33% since that date, accumulating $190 billion in market capitalization.


Ford (NYSE:F)

Ford (NYSE:F) gained 20.73% thanks to the Tesla deal on May 25, 2023, it has experienced a significant 17.64% gain since 2023. According to the analyst, Ford’s average price is $15.56, with an upside of 13.25%.


General Motors (NYSE:GM)

As General Motors (NYSE:GM) announced a partnership with Tesla for charging infrastructure on Thursday, June 8, 2023, the company increased its stock by 4.57% to $37.49. According to the analyst, GM’s average price is $46.90, with an upside of 29.45%.



Tesla stock is soaring and other EV charging companies such as ChargePoint (NYSE: CHPT) and EVgo (EVGO.O) were down 13.12% and 17.24% on opening trade on Friday. 


What's hot this week

  1. Toyota plans to develop and evaluate the quality of EV batteries at its North American research and development headquarters in Michigan with a $48 million investment. The lab is expected to begin operations in 2025.
  2. Volvo has unveiled its small, inexpensive, and simple EX30 electric SUV.
  3. Apple- As part of its upcoming iOS 17 software update, Apple Maps will provide real-time information of EV charging availability for EV owners. As part of the SharePlay feature, Apple will also make it easier for iPhone owners to control car entertainment together.
  4. The ZDX EV will be Acura’s first vehicle equipped with “Google built-in,” including Google Assistant, Google Maps, and more.
  5. Porsche unveiled Mission X, a battery-electric hypercar concept the automaker described as a “technology beacon for the sports car of the future.”

The key takeaways/market update is a series by AxeHedge, which serves as an initiative to bring compact and informative In/Visible Talks recaps/takeaways on leading brands and investment events happening around the globe.

Do keep an eye out for our posts by subscribing to our channel and social media.

None of the material above or on our website is to be construed as a solicitation, recommendation or offer to buy or sell any security, financial product or instrument. Investors should carefully consider if the security and/or product is suitable for them in view of their entire investment portfolio. All investing involves risks, including the possible loss of money invested, and past performance does not guarantee future performance.

Written By