GM to use Tesla charging network in new partnership

After the EV maker struck a similar deal with Ford, General Motors announced it has a deal with Tesla to allow access to the company's charging network, Yahoo Finance Live anchors Akiko Fujita and Seana Smith discuss the outlook for charging infrastructure adoption.

Video transcript

AKIKO FUJITA: Want to get to some breaking news in the auto space. Tesla's domination now growing. General Motors is following in the footsteps of rival, Ford Motor, and partnering with Tesla to use the company's charging network, gaining access to 12,000 chargers starting next year. Like Ford, General Motors will also begin installing a charging port used by Tesla known as NACS. This is set to start in 2025. And this really does, Seana, in many ways put everything, the infrastructure, particularly the chargers, in the hands of Tesla.

SEANA SMITH: It certainly does, giving them a huge advantage there. We're seeing the reaction. Tesla shares after-hours, GM stock up was up just about 4%, I believe, it still is right now in extended trading. But you're right, it certainly does endorse Tesla's technology as the standard here, industry standard, going forward when it comes to those charging stations.

Range anxiety is a real thing when it comes to the EV owners. People are thinking about going out and buying an electric vehicle. I know from your experience, like you shared, Tesla's supercharging network is reliable, especially when you compare it to some of the alternatives out there in terms of some of their competitors with the other model there. So the fact that these drivers, EV drivers are going to have access to even more stations, they will need to use an adapter before the new models are built in 2025.

But that should you would think maybe help more people feel comfortable making that transition to an EV and not so concerned that they won't be able to find a charging station.

AKIKO FUJITA: Yeah. And worth noting that the current industry standard is not Tesla's charger, it is what's called CCS. And if both of these companies are going to start installing those chargers into their cars in 2025, you have to wonder what the overall infrastructure is going to look like and whether, in fact, it is going to shift overall in the favor of Tesla, because, as much as GM Ford, so many of these companies, have tried to get the ball rolling here-- and GM is one of those companies that's really built out, whether it's the batteries or the infrastructure, really making a play for the full stack-- they just can't move quickly enough.

With the reality right now is they're trying to sell those cars. The charging infrastructure just isn't in place.

SEANA SMITH: Yeah. Certainly. A huge advantage. Will be interesting to see if any of others follow. But GM and Ford, great starting point there for Tesla.

AKIKO FUJITA: Yeah. That's certainly a stock move on both ends there.