General Motors (GM) announced on Thursday its decision to incorporate Tesla's technology for charging its EVs (electric vehicles).
As part of this collaboration, General Motors will also offer models that utilize the charging plugs manufactured by Tesla.
This move, similar to Ford's recent agreement, will help to improve the industry standards of Tesla’s plugs.
The agreements will enable drivers of G.M. and Ford cars to utilize Tesla chargers, which are renowned for their reliability and often predominant option in many locations.
Elon Musk, the CEO of Tesla, expressed his optimism about the deal, stating that it will significantly contribute to the widespread adoption of electric vehicles.
However, some concerns may arise regarding Tesla's potential to dominate the rapidly expanding charging business, considering its current dominance in the EVs market.
As a result of this agreement, G.M. will gain access to more charging stations, while Tesla will generate revenue by selling energy to drivers of non-Tesla vehicles.
In order to be eligible for a portion of the $7.5 billion federal government investment in charging station construction, Tesla needs to open up its network.
However, by accepting the charging standard of Tesla, General Motors and Ford expose themselves to dependence on their primary rival.
This agreement also poses risks for Tesla, as the acceptance of its vehicles has led to blockage at its charging stations in certain places and along highways.
This could lead to frustration among Tesla owners who now have to share charging infrastructure with G.M. and Ford vehicles.