Tesla's stock soared by 6% as General Motors (GM) joined Ford in using Tesla's Supercharger network

June 9, 2023: Tesla’s stock soared by 6% as General Motors (GM) joined Ford in using Tesla’s Supercharger network for electric-vehicle charging. This move is expected to make Tesla’s charging system an industry standard. Tesla has been experiencing a winning streak in the stock market, with this being its longest winning streak in two and a half years. General Motors also saw a rise of nearly 5% in its stock.

The collaboration between these three major U.S. automakers means that around 70% of the electric vehicle market in the country will have access to Tesla’s North American Charging Standard (NACS). This puts pressure on other companies to upgrade their charging networks to be compatible with Tesla’s system. Some companies in the charging industry saw a decrease in their stock prices.

Consumer Reports senior policy analyst, Chris Harto, stated that this partnership is a significant boost for Tesla’s charging business and positions them as the leading charging network in the country. It can potentially become a profitable segment for Tesla in the future.

Wedbush Securities estimated that Ford and GM could contribute around $3 billion to Tesla’s EV charging revenue over the next few years. As a result, the brokerage increased its price target for Tesla shares.

Tesla’s NACS is considered more reliable and widely available than the combined charging system (CCS) supported by the U.S. government. The CCS charging infrastructure has been criticized for its inefficiency and occasional malfunctions, which have caused concerns among potential electric vehicle buyers.

However, there is a potential risk for Tesla as the increased usage of Superchargers could lead to overcrowding and disappoint Tesla owners. Additionally, this move may reduce Tesla’s competitive advantage of having exclusive access to the best charging network.

In summary, the collaboration between Tesla, General Motors, and Ford in using Tesla’s Supercharger network has driven Tesla’s stock price and market capitalization. It puts pressure on other companies to upgrade their charging networks and solidifies Tesla’s position as the leading charging network in the country.