Beginning next year, owners of electric vehicles made by General Motors and Ford will be able to charge their EVs at many of Tesla's stations, the largest network in the US.
Both Detroit car makers are adopting Tesla's EV charging connector.
After GM and Ford's decision, the rest of the industry may have to follow – a major victory for Tesla that would guarantee revenue for years.
There are two main types of EV charging plug: Tesla's North American Charging Standard and CCS, used by nearly all other car makers. It is not clear which others might follow Ford and GM.
Tesla has 17,000 charging plugs in its network and its stations can charge faster than most others. They are often more reliable than competitors and found in locations closer to major travel corridors.
Under the new agreements with GM and Ford, EVs from those companies will be able, starting next year, to charge at 12,000 Tesla Supercharger plugs.
Tesla is the top seller of EVs in the US, with GM second and Ford third.
Because those three companies control so much of the EV market, analysts suggest other car makers are likely to sign up with Tesla to avoid being left at a competitive disadvantage.
“Do I want to have my customers not have access to Superchargers, and I’m going to charge them $100,000 for a vehicle?” said Gary Silberg, global head of automotive at KPMG.
If an EV is made by GM or Ford, an adapter will be required to hook into Tesla chargers. It is unclear how much those will cost. Owners can also continue to charge on networks with CCS connectors.
If the car is made by some other manufacturer, at this point Tesla's chargers are not accessible. But there is a growing network of public stations equipped with CCS connectors – up to nearly 54,000 locations, with roughly 139,000 plugs, the US Department of Energy said.
Still, only 7,400 such stations are direct current fast chargers, which can provide a significant charge in just minutes.
In 2025, GM and Ford say they will start installing ports in their new EVs that will be compatible with Tesla chargers. To use a CCS charger instead, you would need to have an adapter or find a charging station that can accommodate both technologies.
Although other car makers will be likely to make the switch to Tesla's system as well, for at least a few years, owners probably need that adapter.
“My guess is that what we will see is by 2027, there will probably be no more new EVs built for North America with CCS ports,” said Sam Abuelsamid, an analyst at Guidehouse Insights.
GM and Ford did not release a lot of detail about the financial arrangements. But it is clear that Tesla will enjoy a boost in revenue as more Ford and GM vehicles charge up.
GM said it is not spending anything on the deal; its customers will pay Tesla to charge. GM and Ford EV owners also win because they will gain access to double the number of chargers that they had before.
If other car makers go with Tesla, companies that are developing their own charging networks, such as ChargePoint, EVgo or Electrify America, would feel squeezed.
global head of automotive at KPMG
They would have to make sure that all their fast chargers can work with the Tesla plug – or become more competitive by, for example, adding stations in better locations and making them more reliable.
“Up to this point, they basically didn't have to compete with Tesla for owners of CCS-equipped vehicles,” Mr Abuelsamid said.
As Tesla's network is open to more vehicles, Mr Silberg said, the other companies might struggle to attract investors. Yet as they adapt, consumers should gain more charging options.
“It will light a fire under those companies,” he said.
Other car makers, including Kia, Nissan and Toyota declined to comment. Hyundai said it continues to evaluate its technology but has nothing to announce. Stellantis said it is working on a response. Volkswagen says it is committed to the CCS standard.
Electrify America, which was established with money from a Volkswagen emissions cheating settlement, plans to double its number of chargers by 2026. It now has 840 stations and about 4,000 plugs.
