![Ford CEO Jim Farley on the new Ford-Tesla EV partnership: It's a bet for our customers](https://image.cnbcfm.com/api/v1/image/107247198-16851050301685105026-29620129080-1080pnbcnews.jpg?v=1685105513&w=750&h=422&vtcrop=y)
DETROIT – An unexpected deal between Ford engine AND Tesla on electric vehicle charging technology and infrastructure could put latest pressure on EV strategies of other carmakers.
The tie-up between the 2 rivals will give Ford owners access to greater than 12,000 Tesla chargers within the US and Canada starting early next 12 months. More importantly, Ford’s next generation of electrical vehicles – expected by mid-decade – will use a Tesla charging plug, allowing owners of Ford vehicles to charge at Tesla charging stations without an adapter.
related investment news
![Club name Ford joins forces with Tesla, sending stocks up](https://image.cnbcfm.com/api/v1/image/107200468-1677528554271-NUP_200782_00153.jpg?v=1685116565)
With the agreement, Ford can be one among the primary automakers to explicitly join the network.
Ford CEO Jim Farley and Tesla CEO Elon Musk announced the deal Thursday during a live audio discussion Twitter spaces. On Friday morning, Farley admitted the draw would create challenges for Ford’s rivals.
“I believe GM and others could have a variety of alternative to make,” he told CNBC’s “Squawk Box.”
Farley’s comments were about which EV plug ought to be the usual for charging within the US. The charger often called CCS is now the industry standard. Tesla’s vehicles and its network of Superchargers use the so-called NACS. Other vehicles can use each but need an adapter.
“CCS is an important standard, nevertheless it was largely done by some type of committee, and I believe GM and others could have a variety of alternative to make,” Farley told CNBC. “Do they need fast charging for patrons? Or do they wish to follow their standard and have fewer fees?
Ford shares rose 6.2% Friday to shut at $12.09 a share. Tesla shares also rose 4.7% on Friday to finish the week at $193.17.
![Watch the full CNBC interview with Ford CEO Jim Farley](https://image.cnbcfm.com/api/v1/image/107247195-16851047171685104712-29620074978-1080pnbcnews.jpg?v=1685105325&w=750&h=422&vtcrop=y)
The Ford-Tesla deal might be a short-term negative for GM, Stellantis and other automakers who don’t have access to so many fast chargers which can be considered crucial to expanding electric vehicle adoption, said Tom Narayan, an analyst at RBC Capital.
“The news today is clearly positive for Ford stock (and potentially short-term negative for GM/STLA), but ultimately we imagine this ought to be seen as Tesla’s long game,” Narayan said in a note to investors on Friday.
Tesla claims to have roughly 45,000 Supercharger connectors worldwide at 4,947 Supercharger stations. The corporate doesn’t disclose how much is within the US The US Department of Energy reports that there are only about 5,300 CCS fast chargers within the country.
General Motorswithout specifically addressing Farley’s comments, said Friday it “believes that open grids and charging standards are the very best method to enable EV adoption across the industry.” GM said it was working with a bunch of corporations and SAE International, formerly the Society of Automotive Engineers, to develop and further refine an open connector standard for CCS, which it said was vital to “constructing an open fast charging network across North America.”
The Detroit automaker announced several partnerships with electric vehicle charging service providers and lobbied for more federal support for such infrastructure.
“Totally Devoted”
Ford is “totally committed” to a single US charging protocol that features Tesla’s plug-in port, Farley said on Thursday.
Musk, announcing the deal with Farley, referred to other automakers that may use the Tesla Supercharger network and proprietary charging ports.
“Working with Ford and possibly others could make it the usual in North America, I believe consumers can be higher off at it,” Musk said Thursday.
The all-electric Ford Mustang Mach-E on the Tesla Supercharger.
Ferry
Tesla previously discussed opening up its private network to other electric vehicles. White House officials announced in February that Tesla had committed to opening 7,500 of its charging stations to non-Tesla electric vehicle drivers by the top of 2024.
Public charging of electrical vehicles is a significant concern for potential buyers, and no other automaker besides Tesla has successfully built its own network. As a substitute, they announced partnerships with third-party corporations that usually proved unreliable and frustrating for owners.
Most U.S. drivers log miles driven by their vehicle from home to nearby locations. But electric vehicle buyers who have the desire to make longer trips or do not have access to a garage with a charger often worry about access to reliable, public charging.
The issue is getting worse: at the least 1 in 5 attempts by drivers to charge failed last 12 months study on public charges released last 12 months by JD Power.
Tesla’s superchargers were ranked the very best when it comes to overall customer satisfaction, in keeping with a separate latest study by JD Power.
Wall Street rally
Wolfe Research analyst Rod Lache called the deal “win-win” because it greater than doubles access to fast chargers for Ford customers and increases Tesla’s network usage.
“For Ford, access to Tesla’s network helps solve a significant problem for electric vehicle customers who otherwise have to rely on third-party charging providers,” he said in a note to investors on Friday. “For Tesla, nevertheless, adding Ford customers will help increase network utilization, which is a key driver of profitability.”
Jim Farley and Elon Musk
Getty’s paintings
The deal significantly increases access to fast chargers for Ford and its customers, said Morningstar analyst David Whiston. He added, “It puts some pressure on other older automakers, but if you happen to’re something like GM, I do not think you want to panic.”
Whiston said he would love to know more in regards to the deal, corresponding to cost, length and other details which have not been announced.
A Ford spokesman said more information on the deal can be announced closer to the opening of Tesla’s chargers to Ford owners early next 12 months.
– CNBC Michael Bloom, Lora Kolodny AND John Rosevear contributed to this report.
Explanation: This story has been updated to make clear that SAE International was formerly often called the Society of Automotive Engineers.