BNR – Tesla stock rose 5 per cent on predictions that its electric-vehicle charging technology will become the industry standard. This comes after General Motors and competitor Ford agreed to utilise the Tesla Supercharger system.
Elon Musk’s Tesla was on track for its 11th straight session of profits. If pre-market gains continue, this would be the company’s longest winning run in two and a half years.
Tesla was also the third-most traded stock in the United States across all exchanges. The company, already the most valuable car manufacturer in the world, was expected to boost its market value by over $30 billion, to almost $780 billion.
Shares of General Motors increased by 3.5 per cent. The car maker has a far smaller valuation at $49.8 billion, but delivers millions more automobiles every year.
The unusual collaboration between the automobile manufacturers means that roughly 70 per cent of the US EV market will now use Tesla’s North American Charging Standard. Tesla’s Supercharger is anticipated to exert pressure on other firms to abandon the industry’s existing standard CCS.
Collaboration Boosts Tesla Market Value
Wedbush Securities analysts stated, “We estimate Ford and GM combined could add another $3 billion to Tesla’s services EV charging revenue over the next few years in another accretive poker move by Musk & Co.”
Analysts increased their price estimate for Tesla stock to $300. This is approximately 30 per cent more than Tesla’s last closing position.
The stock’s forward 12-month price-to-earnings ratio is 60.46, compared with General Motors’s 5.29 and Ford’s 7.94. the brokerage noted that the move will also help GM’s goal of expanding charging access to more than 134,000 accessible chargers.
In the EV competition, both Detroit manufacturers have struggled to escape Tesla’s shadow. According to AutoForecast Solutions, they are anticipated to trail well behind EV market leaders Tesla and Volkswagen until 2028.