Sun, 01 Oct 2023

Ford, Tesla shares jump over 7% on Superchargers deal

Robert Besser
31 May 2023, 05:10 GMT+10

DETROIT, Michigan: After Ford Motor Co announced an agreement with Tesla to allow autos to be charged using the Tesla Superchargers, Ford shares jumped 7 percent on May 26.

Further, there was speculation that the Tesla Superchargers could become the standard for EV charging in the United States.

"With adapters and software, we really don't have to make a choice right now what the standard is, but I think it's going to play out in the free market," said Ford CEO Jim Farley, as quoted by Reuters.

Following the announcement about sharing EV chargers, Ford shares were up 7.6 percent at $12.25, while Tesla shares rose 7.5 percent to $197.95.

Meanwhile, U.S. Transportation Secretary Pete Buttigieg spoke in favor of the Ford-Tesla agreement, though he noted that the Biden administration would not require an EV charging standard. "Tesla has built an extraordinary network ... For them to be part of this effort I think is terrific news," Buttigieg said, according to Reuters.

To expand acceptance of using electric vehicles in the United State, analysts have said greater access to charging stations will have to occur.

Ford's Farley added that General Motors and other automakers need to make "a big choice" as to whether the standard charger will be Tesla's EV chargers or those offered by Combined Charging System (CCS).

Combined Charging System has offered an alternative charging standard from the Tesla model charger for DC fast-charging.

"We believe the move will ultimately increase BEV (Battery Electric Vehicles) penetration in North America, and in a rising-tide-lifts-all-boats rationale, increase Tesla sales," RBC Capital Markets analysts said in a note.

The Tesla Supercharger, developed in 2012, can add up to 322 miles of range in only 15 minutes.

Farley also said Ford currently offers EV drivers some 10,000 fast chargers nationwide. The agreement with Tesla will double that number.

More Central America News

Access More

Sign up for Central America News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!