Tesla’s stock extended its longest winning streak of eleven consecutive days, setting a new record. Tesla’s shares ended the day with 2.2% at $249.83, recording the automaker’s highest stock since October 2022. The previous record of eleven straight days was recorded in January 2021. The new 12-day streak of Tesla’s stock was among the US’ most traded stock exchanges.
The news of Tesla breaking its previous record and creating a new longest-winning streak came after its Thursday announcement of a collaboration between General Motors and Ford. Per the announcement, GM would use Ford’s electric vehicle charging network to charge their cars.
The partnership between the two automakers also led to a new plan to install a charging port used by Tesla from 2025 instead of the current port the automobile industry uses. The announcement to use Tesla’s chargers increased GM’s shares by 4% and Ford’s by 2.3%. Charging technology makers Blink Charging, Tritium, and ChargePoint also announced their plans to offer chargers with Tesla’s connector.
“Given recent announcements by Tesla, GM, and Ford, we are clearly witnessing the continued evolution of the EV charging industry as technologies advance and industry stakeholders come together and evaluate best practices.” — Blink Charging.
With Tesla in the picture, the partnership between USA’s three biggest automakers would open new opportunities for Tesla (whose stock rose 7% after the announcement) as it could drive other automakers and the US government to follow suit and access Tesla’s charging ports. If the plan to adopt Tesla’s technology goes into motion, over 60% of the US market can use Tesla’s North American Charging Standard (NACS), making it the country’s primary charging network.
GM’s CEO Mary Barra stated that the collaboration will boost NACS as North America’s unified standard for charging technology, resulting in its “mass adoption.”
Wedbush also increased its 12-month target price goal for Tesla’s shares from $215 to $300, predicting that the GM and Ford deal could raise the revenue by an extra $3 billion by 2024. Moreover, Piper Sandler estimated Tesla’s revenue to hit $9.65 billion by 2032, with other EV companies contributing over 50% of the estimate.
Analyst Dan Ives predicts the collaboration between the three automakers will be a substantial monetary opportunity for Tesla and its supercharger services, adding to the company’s value.
Tesla’s connections are a household market name in the US, deemed more reliable than the standard government-supported combined charging system (CCS), for which the government raised approximately $7.5 billion in federal funds. On the contrary, Tesla, considered a globally valuable automaker, contributed over $200 billion to its market price since the news about the GM, Ford, and Tesla partnership dropped on May 25.
Hargreaves Lansdown analyst Matt Britzman said collaboration between the three automaker giants would pressure other carmakers to join the club. He said it would also sway the US government, which has spent billions building charging networks, making Tesla’s technology the industry standard.
