Ford’s EV Charging Deal With Tesla Ripples Through Industry

Ford Motor Co’s (F.N) decision to allow customers to use Tesla’s TSLA.O electric-vehicle charging network has sent ripples through the industry, raising questions about a national U.S. charging standard as well as the fate of charging startups that are struggling.

The deal, announced last month, would open more than 12,000 Tesla Superchargers to drivers of Ford vehicles in North America starting in 2024.

The tie-up puts pressure on other companies and the administration of U.S. President Joe Biden to fall in line or spend more to up their games, according to industry executives, investors, bankers and consultants.

"Tesla’s head start in the space and Ford’s buy-in ... will require companies who have invested in other technologies to pivot, which will be an expensive proposition," said Paul Baiocchi, chief ETF strategist at SS&C ALPS Advisors.