In a significant move toward supporting electric vehicle (EV) adoption, Tesla CEO Elon Musk and Ford CEO Jim Farley have jointly announced a collaboration that will allow Ford’s EV (F:NYE) drivers to access Tesla’s (TSLA:NSD) Supercharger network. This agreement, set to take effect in the spring, will provide Ford’s EV drivers with access to approximately 12,000 fast-charging stations across North America, effectively doubling the current number of fast-charging options available to them. To utilize the Tesla Superchargers, Ford drivers will need to purchase an additional adapter that enables charging for their Mustang Mach-E or F-150 Lightning pickup trucks.
Elon Musk emphasized the aim of promoting electrification and sustainable transport as the motivation behind opening up Tesla’s Supercharger network. He stated, “We don’t want the Tesla Supercharger network to be like a walled garden… We want it to be something that is supportive of electrification and sustainable transport in general.”
One of the major obstacles to widespread EV adoption is the availability and accessibility of charging infrastructure, particularly for long-distance travel. Tesla has built an extensive network of approximately 45,000 Supercharger stations across the United States. In response to a push by the Biden administration, Tesla previously announced plans to open at least 7,500 charging stations for all EV drivers by 2024.
Future Outlook:
Looking ahead, Ford’s next generation of EVs will be equipped with the same standard connector used by Tesla, making EV charging simpler and more versatile. The Biden administration has also proposed the adoption of the combined charging system, the dominant charging connector standard in the United States, to facilitate the use of EV tax credits. This move would ensure that EV owners can charge their vehicles at any charging station throughout the country.
As for Tesla’s stock, analysts have a Buy consensus analyst rating on Stock Target Advisor, with 14 Buy Ratings, 11 Hold Ratings, and four Sell ratings. The average price target for Tesla stock is $201.84, indicating a potential upside of 9.4% from the current levels. Year-to-date, Tesla stock has experienced a gain of 70.6%.
The Takeaway:
The collaboration between Tesla and Ford to expand access to charging infrastructure demonstrates a collaborative approach among EV manufacturers. By providing Ford’s EV drivers with access to Tesla’s Supercharger network, the partnership aims to alleviate concerns about charging availability and enhance the convenience of EV ownership. This development is a positive step toward the widespread adoption of electric vehicles and the acceleration of sustainable transportation.
