Starting in 2025, General Motors (GM), together with Ford, will begin equipping its electric vehicles with a charging port that conforms to the North American Charging Standard (NACS), sometimes known as the North American Charging Standard, instead of the current industry standard, which is CCS.
GM CEO Mary Barra told CNBC’s Phil LeBeau on Thursday that the carmaker expects to save up to $400 million of a previously stated $750 million investment to build out EV charging as a consequence of a contract. The investment was made to build out EV charging infrastructure.
Tesla and its charging technology have scored a huge victory thanks to the company’s collaborations with now two of Detroit’s most prominent automobile manufacturers. It is anticipated that this will increase the amount of pressure placed on other automakers, as well as the United States government, which is now investing billions of dollars in the expansion of an electric vehicle charging network, to adopt Tesla’s technology.
After the announcement of the transaction between Tesla and Ford a month ago, analysts on Wall Street lauded it as a “win-win” situation for both companies. During Thursday’s after-hours trade, shares of GM and Tesla both increased by almost 3 percent.
During a live audio chat that took place on Twitter Spaces, Barra and Elon Musk, CEO of Tesla, made the announcement about the deal. It comes at a time when GM is increasing manufacturing of its completely electric vehicles in an effort to achieve sales volumes in the segment comparable to those of Tesla.
Additionally, it represents a radical shift in strategy on the part of GM. When Ford made its own partnership announcement with Tesla a few weeks ago, GM was already hard at work developing and refining an open connector standard for CCS in collaboration with the engineering organization SAE International.
During the debate, which lasted for fewer than ten minutes, Barra remarked, “I think we have a real opportunity here to really drive this to be the unit unified standard for North America, which I think will even enable more mass adoption, so I couldn’t be more excited.”
Adding to the mystery surrounding the partnership between competitors is the fact that Twitter Spaces was Barra’s first tweet since October 27. Barra has not been active on the social media site since Musk took ownership of it. During the same time period, GM pulled all of its advertisements from the platform.
A representative for GM stated on Thursday that the company’s brands as well as some of its executives still use Twitter, but the business has not yet begun publishing advertisements on the social media platform. After the Twitter discussion, Barra gave an interview to CNBC in which he stated that “it’s possible” that the company will ultimately resume advertising, despite the fact that the company is currently looking for a new chief marketer and is “reimagining” its marketing.
Similar to Ford’s contract, the one between GM and Tesla is likely to be profitable for both parties involved. It is anticipated that it will more than double the access to fast chargers for consumers of GM and Ford, in addition to increasing the utilization of Tesla’s network.
According to Tesla, there are around 45,000 Supercharger connectors located all over the world at 4,947 Supercharger Stations. The number of employees that are located in the United States is not specified by the company. According to the data provided by the Department of Energy of the United States, the country only possesses roughly 5,300 CCS fast chargers.
Tesla had previously considered making its proprietary network accessible to other electric vehicles. In February, officials from the White House made the announcement that Tesla has committed to opening up 7,500 of its charging stations to drivers of electric vehicles (EVs) other than Teslas by the end of 2024.
Musk announced on Thursday that owners of Tesla vehicles will not be granted priority access to the company’s chargers. He referred to this as “an even playing field” for owners of other electric vehicles.
“The most important thing is that we’ve witnessed the electric vehicle revolution,” stated Musk.
The availability of public charging stations for electric vehicles is a big worry for prospective purchasers, and Tesla is the only automaker that has been successful in constructing and operating its own network of charging stations. Instead, these manufacturers have announced collaborations with third-party companies, which have a history of not being reliable and causing owners a lot of frustration.
The majority of drivers in the United States log their miles by traveling from their homes to sites close by. However, prospective owners of electric vehicles who plan to go on longer excursions or who do not have access to a garage equipped with a charger are frequently concerned about the availability of dependable public charging stations.