After General Motors (GM.N) and Ford (F.N.) agreed to use the Tesla Supercharger network, Tesla (TSLA.O) shares rose 6% on Friday.
The Elon Musk-led manufacturer was set for its eleventh straight session of gains, its longest streak in 2-1/2 years. Tesla was a top U.S. stock.
Tesla, the world’s most valuable automaker, was expected to increase its market valuation by $30 billion to $780 billion.
General Motors, whose market cap is $49.8 billion but sells millions more cars, climbed nearly 5%.
Tesla’s North American Charging Standard (NACS) will be available to nearly 70% of the U.S. E.V. market thanks to a unique agreement between three major automakers.
That will force other companies to improve their networks to work with Teslas at a time when many are behind in customer service and lack the finances.
ChargePoint Holdings Inc (CHPT.N), EVgo Inc (EVGO.O), and Blink Charging Co (BLNK.O) fell 3.0%–10.0%.
“It’s a huge boost for Tesla’s charging business,” said Consumer Reports senior policy analyst Chris Harto.
They want to become the nation’s top charging network. It may be a significant moneymaker for them.”
Wedbush Securities estimates Ford and G.M. could add $3 billion to Tesla’s E.V. charging income over the next three years. The brokerage boosted its Tesla share price objective to $300, roughly 30% above their recent closing.
The stock’s forward 12-month price-to-earnings ratio is 60.46, higher than G.M.’s 5.29 and Ford’s 7.94.
Tesla’s NACS is more pervasive and reliable than CCS, the combined charging system that the U.S. government has supported with $7.5 billion in federal funds.
Prospective purchasers worry that the CCS charging infrastructure is sluggish or unusable, leaving them stuck on the road.
Michael Austin, Guidehouse’s senior research analyst, warned that Tesla’s use of Superchargers could cause issues.
“There is a risk for Tesla in terms of either making the stations too busy and disappointing Tesla owners or removing that competitive advantage of having exclusive access to the best network,” Austin added.
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