In a significant development for the electric vehicle (EV) industry, General Motors (GM) has announced its decision to adopt Tesla’s North American charging plug standard. The move comes shortly after Ford made a similar decision, solidifying a new standard for EV charging hardware. As part of the agreement, GM electric-vehicle buyers will gain access to the highly regarded Tesla Supercharger network. The news was revealed during a Twitter Spaces event, featuring GM CEO Mary Barra and Tesla chief Elon Musk.
The decision by two of the leading American automakers to adopt Tesla’s charging plug standard has far-reaching implications. With GM joining the ranks, three of the top EV sellers in the North American market have now aligned themselves on a common standard for charging infrastructure. This development is expected to streamline the charging experience for EV owners and contribute to the wider adoption of electric vehicles across the region.
Upon the announcement, investors responded positively, signaling their support for the newfound collaboration. GM’s shares surged more than 4% after the bell, while Tesla’s shares rose 4% as well. The market’s reaction reflects optimism about the potential for a single charging hardware standard in the North American market, which could simplify the charging process and enhance customer convenience.
This alliance between Tesla, Ford, and GM also holds significant commercial and public policy implications. The Biden administration had previously mandated the adoption of the “combined charging system” (CCS) standard as a requirement for companies seeking federal subsidies for new charging stations along the nation’s busiest roadways, spanning approximately 7,500 miles (12,070 km). However, the collaboration between the three automakers challenges the White House’s direction, suggesting an alternative approach to standardization.
As the transition to electric vehicles gains momentum, the standardization of charging infrastructure is becoming increasingly crucial. By embracing Tesla’s charging plug standard, GM and Ford are embracing interoperability and compatibility, eliminating the need for separate charging networks. This move will likely encourage other automakers to follow suit, leading to a more unified and accessible EV charging infrastructure across the continent.