After the No. 2 U.S. carmaker announced a partnership allowing its electric-vehicle owners to use Tesla Inc.‘s (TSLA.O) charging facilities in North America, Ford Motor Co (F.N.) shares rose more than 7% on Friday.
Ford CEO Jim Farley told CNBC that Tesla’s Superchargers might become the U.S. standard for E.V. charging, but added: “With adapters and software, we really don’t have to make a choice right now what the standard is, but I think it’s going to play out in the free market.”
Ford shares jumped 7.6% to $12.25 in afternoon trade, and Tesla shares rose 7.5% to $197.95.
The Ford-Tesla transaction was lauded by U.S. Transportation Secretary Pete Buttigieg, who told CNBC that the Biden administration would not set an E.V. charging requirement. Tesla’s network is remarkable. I’m thrilled they’re involved.”
Analysts say charging station access is one of the biggest barriers to electric vehicle adoption.
General Motors Co (GM.N) and other automakers will “have a big choice to make” between Tesla’s E.V. chargers and the Combined Charging System (CCS), Farley said. CCS is a competitor in the D.C. fast-charging plug.
G.M. has collaborated with other automakers to build an open connector standard in the CCS, “a truly universal solution” for fast charging. It believes open charging networks and standards are the best way to promote E.V. adoption throughout the industry.
“We believe the move will ultimately increase BEV (Battery Electric Vehicles) penetration in North America, and in a rising-tide-lifts-all-boats rationale, increase Tesla sales,” RBC Capital Markets analysts said.
Since 2012, Tesla’s Supercharger has added up to 322 miles (518 km) of range in 15 minutes. According to Farley, the Tesla partnership will boost Ford’s 10,000 fast chargers.