Mary Barra, the CEO of General Motors, and Elon Musk, the CEO of Tesla, have formed an unprecedented partnership that will profoundly impact the entire automotive industry. They have revealed their intentions to incorporate Tesla’s renowned supercharging technology into GM’s fleet, indicating that these two automotive powerhouses are poised to revolutionize the charging experience for electric vehicles.
This monumental announcement closely follows the recent collaboration between Elon Musk and Jim Farley, the CEO of Ford.
Tesla’s unwavering dominance in the North American electric car charging industry has reached an absolute pinnacle, effectively overshadowing the competing CCS charging standard. This strategic alliance holds the potential to usher in a new era of collaboration, solidifying the immense possibilities of a shared vision for sustainable transportation.
Prepare to witness the dawn of a remarkable era as these automotive giants pave the way towards a future of innovation and sustainability.
In the past few weeks, an announcement was made by Elon Musk and Ford CEO Jim Farley, revealing Ford’s plans to integrate Tesla’s NACS charging standard into their vehicles. This charging standard, known as the Tesla Supercharger Connector, has been made available by Tesla as an open-source solution for the entire industry to adopt. In comparison to the prevailing CCS standard, the Tesla Connector offers numerous advantages. It is compact, lightweight, easier to handle, and possesses greater durability and fault tolerance.
Furthermore, Tesla’s superchargers are known for their fast charging capabilities. This significant advantage played a role in Ford’s decision to transition to Tesla’s standard, as it grants them access to over 12,000 Tesla Superchargers, effectively doubling their access to fast charging options. This strategic move by Ford demonstrates the appeal and value of Tesla’s charging standard and its ability to enhance the charging infrastructure for electric vehicles.
General Motors
Following the recent announcement, there was considerable speculation about whether General Motors would follow in Ford’s footsteps. Many observers perceived a disconnection between GM CEO Mary Barra and the reality of electric vehicles, despite her recognition by President Joe Biden for leading the industry. In truth, GM had been trailing behind, as evidenced by their recent decision to discontinue their highly popular Chevy Bolt EV.
However, just a few weeks after Ford’s announcement, General Motors decided to follow in the footsteps of its crosstown rival, Ford, by partnering with Tesla and utilizing its North American charging network and technologies. Through this agreement, GM vehicles will gain access to Tesla’s extensive network of 12,000 fast chargers using an adapter and GM’s EV charging app starting in the coming year.
In addition, similar to Ford, GM will begin incorporating the Tesla-developed North American Charging Standard (or NACS) into its electric vehicles starting in 2025 instead of the currently prevalent industry-standard CCS.
During an interview with CNBC’s Phil LeBeau, GM CEO Mary Barra revealed that this partnership would enable the company to save a significant amount of money, up to $400 million, from a previously announced $750 million investment dedicated to the expansion of EV charging infrastructure.
These collaborations with two prominent Detroit automakers represent a significant triumph for Tesla and its charging technology. It is anticipated that this development will exert pressure on other automakers, as well as the U.S. government, which has made substantial investments in building out an EV charging network, to consider adopting Tesla’s technology.
Last month, when the Tesla-Ford partnership was announced, financial analysts on Wall Street lauded it as a “win-win” scenario. Following the announcement of the GM-Tesla deal, both GM and Tesla stocks experienced a rise of approximately 3% during after-hours trading on Thursday.
The partnership between GM and Tesla was unveiled by GM CEO Mary Barra and Tesla CEO Elon Musk during a live audio discussion on Twitter Spaces. This collaboration comes as GM intensifies its efforts to increase production of its fully electric vehicles with the aim of achieving sales volumes comparable to Tesla’s. It also signifies a significant strategic shift for GM. Just a few weeks prior, when Ford announced its own collaboration with Tesla, GM was actively working alongside engineering organization SAE International to develop and enhance an open connector standard for CCS.
During the brief discussion, lasting less than 10 minutes, GM CEO Mary Barra expressed her enthusiasm for the partnership.
Adding to the intrigue of rival companies collaborating, this Twitter Spaces conversation marked Barra’s first tweet since October 27th, as she had ceased using the platform when Elon Musk acquired it. GM had also halted advertising on Twitter at that time.
A GM spokesperson confirmed that while the company’s brands and certain executives still use Twitter, GM has not resumed advertising on the social media platform. Barra mentioned in an interview with CNBC following the Twitter discussion that there is a possibility of eventually reinstating advertising as the company searches for a new chief marketer and explores ways to “reimagine” its marketing strategies.
At the 2020 Barclay Conference, General Motors CEO Mary Barra unveiled plans to significantly increase the company’s financial commitment to electric and autonomous vehicles by an additional $7 billion. This brings GM’s total investment in EV and AV technologies to $27 billion through 2025. The original commitment of $20 billion was announced before the COVID-19 pandemic, which prompted GM to further prioritize and accelerate its efforts in the electric and self-driving vehicle sectors.
As part of this increased investment, GM aims to launch a total of 30 new electric vehicles globally within the same timeframe. It is noteworthy that more than two-thirds of these new EVs will be available in North America, reflecting GM’s focus on the regional market.
During the conference, General Motors provided updates on its Ultium modular battery system, indicating that advancements in engineering have resulted in an increased estimated maximum range for Ultium-based vehicles, now reaching 450 miles on a full charge. It should be noted that achieving this extended range is likely limited to specific GM electric vehicles equipped with larger battery packs designed for long-range capabilities.
Furthermore, GM unveiled its decision to adopt the accelerated development cycle pioneered for the GMC Hummer EV as the standard approach for all its electric vehicle programs. This shift aims to expedite the development schedules for a total of 12 different vehicles spanning GM’s various brands, including Chevrolet, Buick, Cadillac, Bright Drop, and Cruise.
The GM-Tesla deal, similar to Ford’s collaboration, is expected to bring mutual benefits to both companies. It anticipates a significant increase in fast charger accessibility for customers of GM and Ford, effectively more than doubling the current availability. Furthermore, this partnership will contribute to the growth and utilization of Tesla’s charging network.
Tesla Superchargers
Tesla boasts a global network of approximately 45,000 supercharger connectors spread across 4,947 supercharger stations, with no specific breakdown provided for the United States. In contrast, the U.S. Department of Energy reports a significantly lower count of approximately 5,300 CCS fast chargers nationwide. Notably, Tesla has previously expressed intentions to open its private charging network to other electric vehicle brands. In February, the White House announced Tesla’s commitment to making 7,500 of its charging stations accessible to non-Tesla EV drivers by the end of 2024.
Regarding access to Tesla’s chargers, Elon Musk recently stated that Tesla owners will not be given priority, emphasizing that access will be equal and fair for all EV owners, creating an “even playing field.”
Access to public charging infrastructure is a significant worry for prospective electric vehicle buyers, and only Tesla has managed to establish a comprehensive network of its own. In contrast, other automakers have frequently relied on partnerships with third-party companies for charging solutions, which have proven to be unreliable and frustrating for owners.
While most drivers in the United States primarily travel within their local areas, EV buyers who intend to embark on long road trips or lack access to home charging solutions often express concerns about reliable access to public charging stations. This apprehension highlights the importance of robust and dependable public charging infrastructure to address the needs and alleviate the anxieties of EV owners.
The partnership between General Motors and Tesla, following the example set by Ford, represents a significant advancement in addressing concerns regarding public charging infrastructure for electric vehicles. By aiming to enhance access to fast chargers for GM and Ford customers and leveraging Tesla’s well-established charging network, this collaboration has the potential to improve the convenience and reliability of public charging options.
As the demand for electric vehicles continues to rise, the development of robust and widespread charging infrastructure becomes increasingly critical to alleviating the apprehensions of potential buyers and promoting the widespread adoption of electric vehicles. Through strategic alliances and advancements in charging technology, automakers are actively working towards a future where public charging is seamless, easily accessible, and capable of meeting the needs of EV owners, ultimately driving the transition towards sustainable transportation.
This unexpected development signifies a notable shift in GM’s approach, aligning the company with emerging EV trends and embracing the benefits offered by Tesla’s charging standard. The convergence of Elon Musk and Mary Barra’s vision demonstrates a willingness to adapt and collaborate, propelling GM into a new era of electric mobility.
How do you think the partnership between General Motors and Tesla will impact the future of electric vehicle charging infrastructure and the wider adoption of electric vehicles?