A Game-Changing And Surprising Tesla And Ford Pact To Disrupt The EV Universe
Last Thursday, Ford Motor Company (NYSE: F) revealed it has joined forces with no other than the EV king, Tesla Inc (NASDAQ: TSLA) so its electric vehicles can be charged at Tesla’s Supercharger stations across the U.S. and Canada. The agreement is set to go into effect in the spring of 2024. The surprise deal that was revealed during a live audio discussion between Ford CEO Jim Farley and Tesla CEO Elon Musk on Twitter Spaces is troubling for General Motor (NYSE: GM), Stellantis N.V. (NYSE: STLA) and other EV players. Upon the announcement, Tesla shares climbed by 4.7% while Ford shares rose 6.2%.
The Pact
As of 2025, Ford’s cars will be equipped with Tesla's NACS charging port, Until then, Ford's EV models, currently F-150 Lightning, Mustang Mach-E and E-Transit that have the Combined Charging System (CCS) port, will be accessing Tesla's V3 Superchargers with a specific adapter.
Ford is among the first automakers to explicitly become part of Tesla’s network.
As of next year, Ford’s owners will be able to access to more than 12,000 Tesla Superchargers across the U.S. and Canada. Tesla says it has roughly 45,000 Supercharger connectors across the globe at 4,947 Supercharger Stations. Moreover, Ford's next generation of EVs which should arrive by 2025 will be able to use these superchargers without needing an adapter.
The Changing Industry Norm
The current industry norm is the CCS charger, while Tesla vehicles and its Supercharger network use NACS. The charging infrastructure is considered crucial to global EV adoption. Yet, Stellantis, GM and other automakers don’t have access to as many fast chargers as only Tesla has successfully built its own charging network with its charges ranking best for overall customer satisfaction last year, according to a survey from J.D. Power. Not to mention the fact that according to another study from the same source, at least 1 in 5 charging attempts overall failed in 2022, giving Tesla an even greater lead on the charging front. It is important to note that electric vehicles from Stellantis and General Motors, as well as others, can still use Tesla's superchargers, but through Tesla's specific adapter.
Tesla’s Long Game
During the Twitter chat, Musk said that by collaborating with Ford, and perhaps others, customers will be better off its NACS becomes the standard. It seems that General Motors, Stellantis and others have been given the invitation to join Tesla's supercharging network.
Ford’s New SUV
Last week during its “Delivering Ford+” day, Ford also unveiled details about its upcoming three-row electric SUV revealing it will be similar in size to the Expedition, with a fast-charging ability of 150 miles of range in less than 10 minutes, with a total range of 350 miles per charge.
Lithium
Before the event, Ford already revealed it signed multiple deals to secure a supply of lithium battery materials.
Ford Continues Pursuing Its Ambitious Goals
Ford continues its race towards producing 2 million EV units by the end oTesla to export to Canada from Shanghaif 2026, jumping even more compared to its targeted 600,000 produced units by the end of this year.
Also last week, Tesla's website delighted its Canadian fans, confirming the export of China-made Model 3 and Model Y. With this move, Tesla can maintain the supply of EVs manufactured in the U.S., namely California and Texas, for the U.S. market where they are eligible for tax incentives that add up to $7,500 in savings.
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