Ford Stock Surges Over 7% Following Partnership With Tesla For EV Charging Stations

Ford Motor Co (F.N) stock rose more than 7% on Friday after the No. 2 U.S. automaker announced a partnership that will allow owners of its electric vehicles to use competitor Tesla Inc's (TSLA.O) charging stations in North America.

Ford CEO Jim Farley told CNBC that Tesla's Superchargers might become the standard for EV charging in the United States, but added: "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 midday trade, Ford shares were up 7.6% to $12.25, while Tesla shares were up 7.5% to $197.95.
U.S. Transportation Secretary Pete Buttigieg praised the Ford-Tesla alliance, but told CNBC that the Biden administration will not set an EV charging standard. "Tesla has built an extraordinary network ... For them to be part of this effort I think is terrific news."

Analysts believe that access to charging stations is one of the most significant barriers to greater acceptance of electric vehicles.

Farley emphasized that General Motors Co (GM.N) and other automakers face a significant decision regarding the selection of EV chargers, with Tesla's charging system and the Combined Charging System (CCS) being the two primary options to consider.

CCS is a charging-plug standard for DC rapid charging that competes with CHAdeMO.

GM noted the necessity of open charging networks and standards as the best way for the industry to adopt electric vehicles (EVs). In accordance with this aim, the business has worked with other automakers to develop the Combined Charging System (CCS) as a universally compatible fast charging option. The CCS, which is currently accessible, is heralded as a fully inclusive standard that allows for universal EV 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.

Tesla has been developing and deploying its own high-speed vehicle charger, known as the Supercharger, since 2012. It can reach a range of 322 miles (518 km) in just 15 minutes.

Farley stated that Ford had approximately 10,000 fast chargers and that the arrangement with Tesla will more than double that number.