In a surprising move, Tesla has opened its Supercharger network to owners of Ford electric vehicles in North America, marking a significant shift in strategy for the electric vehicle pioneer.
This partnership, confirmed on Thursday, allows Ford EV owners, including those of the Mustang Mach-E and F-150 Lightning, to utilize Tesla’s fast-charging adapters, enhancing the EV ownership experience for Ford drivers.
Ford CEO Jim Farley expressed enthusiasm about the collaboration, stating, “This partnership will improve the EV ownership experience for Ford EV drivers. I’ve tested it myself, and it works great.”
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The move follows a similar agreement between Tesla and General Motors, announced earlier, which granted GM customers access to over 12,000 Tesla fast chargers across the United States and Canada. GM CEO Mary Barra projected savings of up to $400 million from a planned investment in EV charging infrastructure.
Elon Musk, CEO of Tesla, has long championed the exclusivity of Tesla’s charging network. However, these recent partnerships signify a strategic shift towards collaboration.
Sam Fiorani, VP for global forecasting at AutoForecast Solutions, believes that while Tesla may lose some customers to other brands, the benefits outweigh the risks. Fiorani predicts that Tesla could generate $6 billion to $12 billion annually by 2030 from its expanded charging business.
Despite concerns about potential customer loss, loyalty to the Tesla brand remains strong. “People shopping for a Tesla aren’t typically cross-shopping at Kia, Ford, or Mercedes-Benz dealers because they simply want a Tesla,” Fiorani wrote. “Competition will continue to heat up and Tesla will inevitably lose some sales to rivals, but loyalty to the brand means the vast majority of owners will return to Tesla with little or no comparison shopping.”
Moreover, opening up its charging network aligns with Tesla’s broader financial goals. Under President Joe Biden’s Inflation Reduction Act, Tesla stands to benefit from federal incentives for expanding EV infrastructure.
William Navarro Jameson, Tesla’s Strategic Charging Programs lead, emphasized the extensive effort behind these collaborations, including interoperability testing and legal negotiations.
“Tesla is not afraid to use government regulations for income and has been working all possible revenue streams for much of its existence,” Fiorani wrote.
Tesla’s market capitalization currently stands at $645.36 billion, and experts speculate that opening its charging stations to other EV producers could further boost its valuation.
The expansion of Tesla’s charging network to accommodate vehicles from other manufacturers could bolster its market value in several ways. Firstly, by increasing the accessibility of charging infrastructure, Tesla stands to attract a broader customer base, thereby driving higher demand for its products and services.
Tesla’s charging revenue is currently reported within its “Total automotive & services and other segment revenue.” However, the company has not disclosed plans to break out revenue from non-Tesla vehicle use of its charging network.
In response to inquiries, Tesla did not provide further information. Nevertheless, the company continues to promote the expansion of its charging network on social media, urging more retailers to host Superchargers at their facilities.