Tesla and GM EV Charging Agreement Bullish for Both Stocks
- GM is putting competition aside and partnering with Tesla on charging standards.
- The collaboration is good for both stocks.
- TSLA and GM stocks are up over 6% and 4%, respectively, since the announcement.
Tesla and General Motors may be competitors in the EV market, but they are also partners. GM CEO Mary Barra and Tesla boss Elon Musk are coming together for the greater good of the electrification industry.
Their ability to agree has been bullish for the stocks of both companies. Since announcing their collaboration on EV charging standards, Tesla’s stock is up over 6% while shares of GM are up over 4%. By the way, TSLA shares have been rising for 11 straight trading sessions.
General Motors announced it will begin integrating the North American Charging Standard (NACS) into its EV lineup starting in 2025. Ford has already announced similar moves.
In addition, owners of GM EVs will be able to charge their vehicles at thousands of Tesla Superchargers across North America. GM has a vision of an all-electric future and is looking to “accelerate mass EV adoption,” according to Barra.
Great to work with you! https://t.co/lDQUlSWrRt
— Elon Musk (@elonmusk) June 8, 2023
Tesla and GM Stocks
Gene Munster, managing partner at Deep Water Management, told CNBC that the deal is a “positive for “GM” shares while slightly positive for TSLA stock. For example, Tesla has just expanded its infrastructure revenue streams.
But Munster expects that EV charging will likely stay a small part of Tesla’s overall business model. Nevertheless, it’s still a sign that both CEOs are committed to the proliferation of EV adoption in North America.
As Tesla opens up its EV rails to the industry, Munster notes that other automakers like Ford will be flocking to Tesla’s charging network, a positive for the industry.
Meanwhile, Tesla bull Cathie Wood, who is at the helm of ARK Invest, expects that the GM partnership will propel Tesla to expand its charging network. She believes it’s extremely bullish for EV adoption in the coming years, saying EVs will “dominate” the auto industry.