European auto giant Stellantis , which owns brands including Chrysler, Peugeot, and Maserati, is tipped to be the next company to sign a deal with Tesla to use its supercharger stations, according to RBC analyst Tom Narayan. It would follow similar agreements Tesla has signed with Ford and General Motors . So-called superchargers enable cars to replenish their batteries at 100kW or more, which is about 14 times faster than conventional wall plugs at home. Last month, Ford announced it had signed a deal with Tesla that will allow the Detroit automaker’s EVs to use Tesla’s charging stations with a plug adapter. Investors cheered the news, with Tesla and Ford’s shares popping by 4.7% and 6.2% respectively, the day after the announcement. Both automakers’ stock prices have rallied by more than 25% since. TSLA GM,F 1M line General Motors also struck a similar deal with Tesla earlier this month. “When you look at the two, the Ford release and the GM release, they’re basically the exact same terms,” Narayan told CNBC Pro. “It really doesn’t make sense why it would be Ford and GM, and not Stellantis.” It is hoped that collaboration between Tesla and other automakers in the U.S. will boost the adoption of electric vehicles by improving access to the charging infrastructure. Narayan likened the situation to “a rising tide lifting all boats,” implying that an improved charging infrastructure will encourage more people to buy electric cars. This, in turn, would increase the demand for electric vehicles, benefiting all manufacturers involved. The below table shows analysts’ current potential upside for Tesla, Stellantis, Ford and GM stock, according to FactSet data. Will the deal hurt Tesla? Narayan said the agreements show that Tesla is less worried about losing customers to other electric vehicle manufacturers. Instead, it is focused on attracting potential customers who are still buying traditional gas-powered vehicles, like the Toyota Corolla or Honda Civic, and convincing them to switch to electric. “New [EV] car sales, it’s still less than 10% of [total car] sales per year in the U.S.,” said Narayan, highlighting the vast untapped potential for growth in the electric vehicle market. Opening Tesla’s extensive and reliable charging infrastructure in the U.S. to other brands could play a significant role in overcoming one of the most significant hurdles to electric vehicle adoption in the U.S.: range anxiety, or the fear of running out of charge before reaching a charging station. “By opening the charging infrastructure, that alleviates the main concern in the U.S., which is range anxiety. And specifically, it’s not just range anxiety, but it’s charging anxiety,” Narayan explained. The de facto plug standard Narayan also said that such collaborations with Tesla could set a new standard in the automobile industry. For example, if manufacturers like Ford, GM, and potentially Stellantis align with Tesla’s supercharger infrastructure, it could set a precedent for smaller manufacturers to follow suit, potentially making the Tesla charging standard ubiquitous. “I think on charging infrastructure, this looks like going to be the de facto standard,” added Narayan. He expects all car makers to eventually adopt it. Analysts have also suggested that any costs incurred by the carmakers for transitioning to Tesla’s North American Charging Standard (NACS) plug standard will likely be immaterial, given the stakes. “We believe that the breadth of TSLA’s network, but also its driver satisfaction rate, has enticed [other automakers] that see charging ultimately reflecting on the broader vehicle experience,” said Bank of America’s analyst Alex Vrabel in a note to clients on June 9. “Tesla inevitably now has more direct access to a larger portion of the future EV market, we believe investors are overstating the difficulty of peers shifting to NACS connector.” Global automakers Looking ahead, Narayan said he expects more European manufacturers to sign charging agreements with Tesla in the United States. Since Nov. 2021, Tesla has opened its supercharger network in Europe, Australia, and China to non-Tesla vehicles. “I definitely would expect European [automakers] to sign similar deals in the U.S., especially the German [firms for whom] the U.S. is a very important market,” he said. ” Mercedes , BMW . I could see Volkswagen as well.”
