Tesla shares (NASDAQ:TSLA) surged over 5% on Friday amidst investors’ positive sentiments following the announcement that General Motors would be joining Ford in adopting the Texas-based EV maker’s North American Charging Standard (NACS) for its electric cars.
The move by the two Detroit giants is seen as a major boost for Tesla, whose Supercharger Network has been a difference-maker in the EV ownership experience of its consumers. GM and Ford’s NACS adoption also puts pressure on other automakers to adopt Tesla’s charging system as well, which is considered to be among the best in the industry.
With its recent movement, Tesla shares are on track to achieve their eleventh straight day of gains. This marks the longest winning streak of the company in about 2.5 years, at least if the stock’s gains hold. TSLA shares were also the third most-exchanged stock in the US across exchanges, as noted in a Reuters report.
Tesla bull Dan Ives of Wedbush Securities dubbed GM’s adoption of the NACS as a notable tailwind for the electric vehicle maker.
“This is a major win for Tesla. It gives Tesla a major competitive advantage and could lead to billions of dollars in additional revenue. We estimate Ford and GM combined could add another $3 billion to services EV charging revenue for Tesla over the next few years in another accretive poker move by Musk & Co,” he added.
The partnership between Tesla, Ford, and GM is a sign that the auto industry is embracing battery electric vehicles as mainstream forms of transportation. As more automakers switch to EVs, Tesla’s charging system may very well become the de facto standard, particularly in North America. This would be a major victory for Tesla, as it is a company that aims to accelerate the advent of sustainability.
Tesla shares opened up 5.65% at $248.12 per share on Friday.
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