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7%+ Increase In Ford And Tesla Stocks Following Superchargers Agreement

7%+ Increase In Ford And Tesla Stocks Following Superchargers Agreement
After the second largest automaker of the United States revealed a pact allowing its electric-vehicle owners to access competitor Tesla Inc's charging stations in North America, Ford Motor Co shares increased by more than 7% on Friday.
According to Ford CEO Jim Farley, Tesla's Superchargers may end up being the norm for EV charging in the US, but he also noted that "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."
In afternoon trading, Tesla shares increased 7.5% to $197.95 while Ford shares increased 7.6% to $12.25.
While praising the Ford-Tesla partnership, US Transportation Secretary Pete Buttigieg told CNBC that the Biden administration will not mandate an EV charging standard. "Tesla has built an extraordinary network. I think it's great news that they're joining this effort."
According to researchers, one of the biggest barriers to a wider adoption of electric vehicles is now access to charging stations.
General Motors Co. and other automakers would "have a big choice to make" between Tesla's EV chargers and the Combined Charging System (CCS), according to Farley.
For DC fast-charging, CCS is a competing charging-plug standard.
GM claimed that open charging networks and standards are the best path forward to promote EV adoption throughout the industry. To that end, it collaborated with other automakers to develop the CCS open connector standard, which it calls "a truly universal solution" for fast charging.
"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 in a note.
The Tesla Supercharger, which was created and introduced in 2012, is a high-speed vehicle charger that can extend a vehicle's range by up to 322 miles (518 km) in just 15 minutes.
According to Farley, Ford currently has 10,000 fast chargers, and the deal with Tesla would increase that number to 20,000.

Christopher J. Mitchell

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