SAN FRANCISCO, United States (Reuters) – Ford Motor Co’s decision to allow customers to use Tesla’s electric-vehicle charging has sent ripples through the industry, raising questions about a national U.S. charging standard, as well as the fate of charging startups that are struggling.
The deal, announced last month, would open more than 12,000 Tesla Superchargers to drivers of Ford vehicles in North America starting in 2024.
The tie-up puts pressure on other companies and the administration of U.S. President Joe Biden to fall in line or spend more to up their games, according to industry executives, investors, bankers and consultants.
“Tesla’s head start in the space and Ford’s buy-in … will require companies who have invested in other technologies to pivot, which will be an expensive proposition,” said Paul Baiocchi, chief ETF strategist at SS&C ALPS Advisors.
SS&C has invested in such charging companies as ChargePoint Holdings Inc., EVgo Inc. and Blink Charging Co.
The Ford deal was a boost to Tesla’s more widespread, reliable North American Charging Standard (NACS) and dented the value of smaller players offering the rival Combined Charging System (CCS). Tesla CEO Elon Musk hopes the deal with Ford, the No. 2 seller of EVs in the U.S., will help make Tesla’s technology the North American standard.
