There are many parts of their electric car beyond charging for which others are jostling. That’s 4% of Tesla’s total revenue last year.īut Detroit should be careful about giving too much away. The partnership will also likely kill off competing standards - Tesla, Ford and GM accounted for three-quarters of electric cars sold in 2022, according to Experian.Īnd while GM and Ford’s customers will now be paying rival Tesla for charging, analysts at Wedbush and Piper Sandler put the revenue opportunity for Musk’s firm at only around $3 billion by 2030.

GM and Ford’s customers will now have access to the most widely deployed infrastructure. and Canadian fast chargers, which quickly top up batteries. The company’s supercharger network already accounts for 60% of U.S. Rallying around Tesla’s design will help. Rolling into a station with the wrong plug could sour a buyer on ditching gas guzzlers. That’s a problem: Drivers need to be able to juice batteries reliably during long-distance trips.

Three designs for electric-car charging plugs have been dueling it out in North America. But the risk is that other more lucrative parts of their vehicles like entertainment on the dashboard will similarly be up for grabs. The move smoothes the path for their burgeoning battery-powered divisions while ceding modest revenue to Elon Musk’s company. General Motors (GM.N) on Thursday said that it would adopt Tesla’s (TSLA.O) electric charger design, joining rival automaker Ford Motor (F.N) and likely cementing the technology as the U.S. NEW YORK, June 9 (Reuters Breakingviews) - Sometimes it makes sense to throw in the towel.

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