Shares of Tesla (TSLA 3.62%) jumped on Friday, rising about 5.8% by 9:50 a.m. ET. The stock’s gain came after General Motors (GM 1.93%) said Thursday afternoon that it is partnering with Tesla to start enabling its electric vehicles (EVs) to charge at Tesla’s fast-charging stations, called Superchargers.
Adding to the fuel for Tesla stock on Friday, several analysts have already commented on the news, noting that it’s a positive development for the electric car maker.
“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 GM CEO Mary Barra in a press release Thursday afternoon. “This collaboration is a key part of our strategy and an important next step in quickly expanding access to fast chargers for our customers.”
Starting in 2024, GM EVs will get access to Tesla’s network of about 12,000 Superchargers (and growing). Existing GM EVs will require an adapter. Beginning in 2025, however, GM EVs will be built with the North American Charging Standard (NACS) inlet, enabling them to connect without an adapter.
This adds to the news several weeks ago that Ford Motor Company is also partnering with Tesla to access its charging network
The positive for Tesla, in this case, is quite clear. First of all, the fees collected from GM vehicles will help fund further growth of Tesla’s Supercharger network. Second, this move will likely help accelerate mass-market adoption of electric vehicles. While this will make Tesla’s competition more formidable, it may also lead to a scenario in which, as the saying goes, “a rising tide lifts all boats.” In other words, a move like this could create more awareness and demand for EVs overall, leading to accelerated growth for Tesla.
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.