Tesla Shares Surge 6% as Ford Motor Joins Its Supercharger Network

Shares of Tesla Inc. (NASDAQ:TSLA) increased by 6% after the announcement of a deal with Ford Motor Company (NYSE:F). Owners of Ford electric vehicles (EVs) will be able to use Tesla’s massive Supercharger network beginning in 2019 according to the agreement.

Ford EV drivers can access over 12,000 Superchargers across the U.S. and Canada using an adapter.

Ford’s upcoming line of electric vehicles will have Tesla’s charging port when they go on sale in the middle of the decade. This action makes Ford one of the first automakers to explicitly tie into Tesla’s network and enables future Ford vehicle owners to charge at Tesla Superchargers without needing an adapter.

Analysts see this alliance as beneficial for both industries and a key step towards further cooperation in the EV sector. Ford gains from providing its customers with a more extensive charging infrastructure, while Tesla is anticipated to see higher demand for its Superchargers due to the agreement’s expanded accessibility. In the long run, this partnership might speed up the adoption of EVs in North America.

The agreement was announced when traditional automakers stepped up their attempts to become electric and new players entered the EV market. Ford is collaborating with Tesla to use the market leader’s established charging infrastructure to strengthen its competitive posture and draw more customers to its selection of electric vehicles.

The cooperation by two key companies may inspire other automakers to pursue comparable alliances, resulting in increased cooperation and perhaps a more rapid deployment of the EV infrastructure.