Watching Tesla shares amid electric vehicle charging agreement
In what appears to be a major victory for electric vehicle charging standards, General Motors has announced it will adopt Tesla's North American charging plug.
This means that General Motors' electric vehicle (EV) buyers will now be able to use the Tesla Supercharger network. A similar agreement had earlier been made with Ford which means that three of the top EV sellers in the North American market have now agreed on a standard for charging hardware.
Investors applauded the decision. GM shares rallied in extended trading while Tesla shares benefitted the most. It could turn out to be a major win for Tesla, which invested heavily to deploy its fast-charging stations across North America.
Tesla Superchargers account for about 60% of the total market for fast chargers in the United States and Canada.
(Video Transcript)
Now we've got gains in extended trade for both General Motors and Tesla as of the close on Thursday evening.
General Motors chart
Let's take a look at the General Motors (GM) chart just to show us what's been going on there. Investors applauding the decision, GM shares up in extended trade by a margin of. 2.89% when things ended out yesterday's session.
Tesla share price chart
But it was a good day for Tesla when it was said and done after the close yesterday. We saw this big rise in Tesla stock. It could turn out to be a major win for Elon Musk. He's invested heavily to deploy the Tesla fast-charging stations across North America and indeed across Europe. Tesla Superchargers account for about 60% of the total fast chargers in the United States and Canada.
Now, this agreement will have a significant commercial and public policy implications. The Biden administration wants to impose a rival combined charging system. The alliance between Tesla, Ford and GM seriously challenges the White House's plans.
Tesla, GM, and Ford together account for about 70% of the total EV charging network across the US. And indeed for those that are old enough, we'll remember the big fight between VHS and Betamax for the standard in video recording. VHS ending with a win. Many saying that Betamax was actually the better system to use, but in fact, we all ended up using VHS recorders because it became standard.
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