GM will adopt Tesla’s electric car charging system – 06/08/2023 – Market

General Motors will join Ford in adopting Tesla’s North American charging standard and giving buyers of its electric cars access to the Tesla Supercharger network, according to an agreement announced on Thursday.

The decision, which follows a similar agreement from Ford, means that three of the top sellers of electric vehicles in the North American market have reached an agreement for a charging hardware standard. The deal was announced by GM CEO Mary Barra and Tesla boss Elon Musk at a Twitter Spaces event.

GM announced that it will equip electric vehicles with connectors based on Tesla’s North American Charging Standard design starting in 2025. By 2024, current owners of GM electric vehicles will be able to use 12,000 Tesla fast chargers in North America, and adapters will be made available.

Investors applauded the deal and the prospect of a single standard for the US market. GM shares rose more than 4% after the announcement; Tesla shares rose 4%.

The alliance between the top three rival electric vehicle manufacturers in the US has significant commercial and policy implications.

The Biden administration has made adoption of a rival “combined charging system” (CCS) standard a requirement for companies to be eligible for billions of dollars in federal grants for new charging stations on nearly 8,000 miles of the busiest roads. from the country. The alliance between Tesla, Ford and GM challenges the direction of the White House.

But Transportation Secretary Pete Buttigieg told CNBC in May after the Ford-Tesla deal that the industry will eventually converge on one system, but that adapters will allow for cross-use.

Tesla, GM and Ford together account for about 70% of current US electric vehicle sales. Industry executives see different EV charging connectors as a barrier to wider consumer adoption.

“I think this is going to be a fundamentally great thing for the advancement of electric vehicles,” Musk said during the Twitter Spaces conversation with Barra.

“I think everything just got a little better,” Barra said.

GM could save $400 million from the deal, Barra said in an interview with CNBC on Thursday.

‘SNOWBALL EFFECT’

From a consumer perspective, the deals with the Detroit automakers appear to be a win for Tesla, which has invested heavily to roll out its fast-charging stations across North America when most other automakers have outsourced charging to third parties. .

Tesla Superchargers make up about 60% of all fast chargers in the United States and Canada, according to US Department of Energy data.

“This is really important,” said Chris Harto, senior policy analyst at Consumer Reports. “I can see it being kind of a snowball effect, with more and more automakers joining and moving towards the Tesla standard.”

For GM and Ford, the deals are a bet that the benefits of giving their customers access to Tesla’s extensive fast-charging network outweigh the risks that their customers will like what they see and choose Tesla for their next purchase.

The alliance between Tesla, GM and Ford puts pressure on other automakers and independent charging network operators that have adopted the CCS standard. A move from the US to Tesla’s standard could prove difficult for rival charging station makers who are already setting up shop in the US to produce equipment that complies with CCS standards.

“That makes NACS much more likely to win in North America versus CCS,” said David Whiston of Morningstar Research, referring to Tesla’s North American Charging Standard. Other charging providers could still use the CCS standard and rely on adapters to service Tesla, Ford and GM vehicles, he added.

Shares in charging companies ChargePoint and EVgo fell more than 4% after-market on Thursday.

Musk said Tesla “will not do anything to favor Teslas” as more competing brands gain access to the Supercharger network. “It will be an even playing field… The most important thing is that we move forward in the electric vehicle revolution.”