A deal was announced on Thursday between two leading automakers, General Motors (G.M.) and Tesla, in which G.M. will have access to Tesla’s widespread charging network for its electric vehicles. In addition, G.M. intends to adopt Tesla’s charging plug standard for its future battery-powered vehicles, a move that could make Tesla’s technology a common industry standard and put pressure on other companies scrambling to establish similar networks as electric vehicle (E.V.) sales increase.
The competition between the charging plugs used by Ford, G.M. and other carmakers and Tesla’s charging plugs reminds one of the competition between Betamax and VHS video cassettes in the 1980s. As we know, VHS ultimately won the battle and Betamax equipment became obsolete.
G.M.’s Chief Executive Officer, Mary T. Barra, disclosed the announcement while streaming on Twitter with Elon Musk, Tesla’s CEO. Both executives described the deal as favourable for customers. Mr. Musk stated during the stream that he would ensure Tesla does not use its grip on the country’s biggest charging network to disadvantage competitors.
The agreement was welcomed by investors, with Tesla and G.M.’s share prices both rising about 3% in extended trading on Thursday. It is hoped that the deal will enhance the progress of E.V. adoption in the automobile industry, an industry that is gradually transitioning to E.V. production.
