Ford (F) to Add Tesla Chargers to Its Electric Lineup
Ford Motor Company F announces a deal to add Tesla TSLA plugs to its current and future electric vehicles. Per the agreement, Ford users will get access to over 12,000 Tesla Superchargers across the United States and Canada starting early next year. Ford’s existing owners will be able to charge their electric vehicles at Tesla Superchargers using an adapter, whereas its next-generation EV owners will not need an adapter to charge their vehicles at Superchargers.
Elon Musk, CEO Tesla and Jim Farley, CEO Ford, announced the deal during a live audio session on Twitter Spaces. Farley mentioned that Ford is committed to using a single U.S. charging protocol that includes Tesla’s charger port, called the North American Charging Standard (“NACS”). Ford currently uses the CCS standard plug in its vehicle but it is unclear if it will continue to maintain the same plug in its next-generation EVs.
Tesla currently operates around 45,000 Superchargers with more than 5,000 stations across the globe. On average, there are nine Superchargers per station.
Ford is currently focused on its Ford+ plan to establish itself in the era of electric and connected vehicles. The company remains on track to reach an annualized EV production capacity of 600,000 units globally by the end of this year.
The firm’s aggressive EV push, with planned spending of around $50 billion by 2026 and target production of more than 2 million EVs by 2026-end (witnessing a 49% CAGR over the span of 2023-2026), augurs well for long-term growth. By 2030, Ford expects EVs to account for 50% of its global sales, which will cement its position in the red-hot EV landscape.
While Ford’s massive investments in green vehicles and self-driving cars will prove beneficial in the long term, it is likely to strain its near-term financials. Ford’s massive spending on modernization, including connectivity, IT and new product launches, is expected to limit cash flows.
Zacks Rank & Key Picks
F currently sports a Zacks Rank #1 (Strong Buy), while TSLA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other top-ranked players in the auto space are Mercedes-Benz Group AG MBGAF and Wabash National WNC, both of which carry the same rank as Ford.
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 6%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 19.7%, respectively.
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Ford Motor Company (F) : Free Stock Analysis Report
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