Charging your electric vehicle (EV) is about to get much easier, and it starts with two of the industry’s best-known powerhouses. In less than three months, the Tesla (NASDAQ:TSLA) Supercharger network will be open to EVs produced by Ford (NYSE:F) and General Motors (NYSE:GM). This represents a significant step forward for EV adoption. As Electrek reports:
“Virtually all automakers selling electric vehicles in North America have announced that they will adopt Tesla’s NACS connector in future electric vehicles to take advantage of the Supercharger network.”
Given the reach and magnitude of Tesla’s network, this will be highly convenient for drivers nationwide. And while this decision may cut into Tesla’s market share, it will give more drivers a new reason to purchase EVs from Ford and GM. The Supercharger network is likely to be an important linchpin in the transition to an electric future. For investors, this means an opportunity to profit before this development spikes sales for Tesla’s two competitors.
Why the Tesla Supercharger Network Matters
It’s true that Tesla doesn’t operate the largest EV charging network in the U.S. Data from EVadoption.com shows that ChargePoint Holdings (NYSE:CHPT) is still number one, with 48,946 total ports. But the Tesla supercharger network is second on that list with 27,257. Now, Ford and General Motors are watching shares rise today in anticipation of this new phase of EV adoption.
Granted, it isn’t only those two companies that will enjoy access. Tesla’s Supercharger network will be opened to other automakers in the future. Jenny Pretare, the company’s design manager of Charging Infrastructure, recently addressed this, noting that Tesla feels it makes the most sense to gradually open its network in order to avoid being overwhelmed. As she stated, discussing Ford and General Motors, “Once they have the charge port (probably meant adapter) and software to interface with our charging stations, they will actually be open to those vehicles.”
Both Ford and General Motors have rebounded nicely following the declines they suffered during the recent United Auto Workers (UAW) strikes. But both stocks have been in the red for the past two quarters, which has created attractive entry points for investors. General Motors already had the advantage of taking a wide variety of beloved vehicle models electric, such as the Chevy Silverado EV and the GM Hummer EV. Now, access to the Tesla supercharger network will help push both stocks to new heights in 2024 as the EV market rebounds.
The Road Ahead
Investors have a key opportunity to strengthen their portfolio before these new EV market growth trends take over in the coming year. According to a study from McKinsey & Company, lack of charging accessibility has been one of the key barriers facing EV adoption. If Tesla continues expanding its supercharger network and opening it to other companies, this problem could be resolved in the fairly new future.
Both Ford and General Motors can already boast that they have better electric trucks than Tesla. Now, even more drivers will have a powerful new incentive to choose the reasonably priced EVs that both companies offer. Tesla may be about to see its own market share diminished, but its new partners will enjoy the ride to the top.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
