DETROIT — General engines will follow crosstown rival Ford engine by partnering with Tesla to leverage the electric vehicle leader’s North American charging network and technologies.
Under the deal, GM vehicles will have access to 12,000 of Tesla’s fast chargers with an adapter and the EV charging app from the Detroit automaker, starting next year.
GM, like Ford, will also begin installing a charging port used by Tesla from 2025, known as NACS, or the North American Charging Standard, instead of the current industry standard CCS.
GM CEO Mary Barra told CNBC’s Phil LeBeau on Thursday that, as a result of a deal, the automaker expects to save up to $400 million on a previously announced $750 million investment to build out electric vehicle charging.
The partnership with now two leading Detroit automakers is a major win for Tesla and its charging technology. It is expected to put pressure on other automakers, as well as the US government investing billions in building an electric vehicle charging network — to adopt the technology from Tesla.
Wall Street analysts hailed the Tesla-Ford deal as a “win-win” when that deal was announced last month. Both GM and Tesla shares were up about 3% in after-hours trading on Thursday.
The agreement was announced by Elon Musk, CEO of Barra and Tesla, during a live audio discussion on Twitter Spaces. It comes as GM ramps up production of its all-electric vehicles to pursue Tesla-level sales volumes in the segment.
U.S. President Joe Biden listens to General Motors Chief Executive Mary Barra during a visit to the Detroit Auto Show to highlight electric vehicle production in America, in Detroit, Michigan, Sept. 14, 2022.
Kevin Lamarque| Reuters
It also marks a stark turn in strategy for GM. Weeks ago, when Ford announced its own partnership with Tesla, GM was working with engineering organization SAE International to develop and refine an open connector standard for CCS.
“I think we have a real opportunity here to really make this the unitary standard for North America, which I think will allow for even more mass adoption, so I couldn’t be more excited,” Barra said during the discussion, which took less than 10 minutes.
Adding to the curiosity of rival partners, the Twitter Spaces was Barra’s first tweet since Oct. 27, as she stopped using the social media platform when Musk took ownership. GM also stopped advertising on the platform at that time.
A GM spokesperson said Thursday that its brands and some executives continue to use Twitter, but the company has not resumed advertising on the social media platform. Barra told CNBC after the Twitter discussion that “it’s possible” the company could eventually reinstate advertising as it searches for a new lead marketer and “reinvents” its marketing.
The deal between GM and Tesla, like Ford’s, is likely to be beneficial to both companies. It is expected to more than double access to fast chargers for GM and Ford customers and increase usage of Tesla’s network.
Tesla says it has about 45,000 Supercharger connectors at 4,947 Supercharger stations worldwide. The company does not disclose how many there are in the US. The US Department of Energy reports that the country has only about 5,300 CCS fast chargers.
A view of Tesla Superchargers on February 15, 2023 in San Rafael, California.
Justin Sullivan | Getty Images
Tesla previously discussed opening up its private network to other EVs. White House officials announced in February that Tesla has committed to opening 7,500 of its charging stations to non-Tesla EV drivers by the end of 2024.
Musk said Thursday that Tesla owners will not be given priority over the company’s chargers, calling access “a level playing field” for EV owners.
“Most importantly, we’ve witnessed the electric vehicle revolution,” Musk said.
Public charging of electric vehicles is a major concern for potential buyers, and no automaker other than Tesla has successfully built out its own network. Instead, those automakers have announced partnerships with outside companies that have often proved unreliable and frustrating for owners.
Most American drivers log vehicle miles from home to nearby locations. But EV buyers who want to take longer car trips, or who don’t have access to a garage with a charger, often worry about access to reliable, public charging.
— CNBCs Lora Kolodny And John Roseveer contributed to this report.
