General Motors (GM) announced Thursday it is joining forces with Tesla (TSLA) to leverage the electric vehicle maker's Supercharger Network.
The announcement comes two weeks after Ford (F) announced a similar partnership with Tesla to enable access for Ford vehicles to Tesla's charging network.
"This collaboration is a key part of our strategy and an important next step in quickly expanding access to fast chargers for our customers," GM CEO Mary Barra said in a press release.
"Not only will it help make the transition to electric vehicles more seamless for our customers, but it could help move the industry toward a single North American charging standard."
Shares of both GM and Tesla popped in after-hours trading following the news with GM up as much as 4% and Tesla rising more than 2%.
The Tesla Supercharger Network will be open to GM drivers starting in 2024 and will initially require the use of an adapter. By 2025, GM anticipates its EVs will have a NACs inlet, which will allow for direct access to Tesla Superchargers.
The extended charging network coincides with GM's larger strategy to electrify its fleet.
"We plan to produce 400,000 EVs over the course of 2022, 2023, and the first half of 2024, including 50,000 EVs in North America in the first half of this year, and double that in the second half," Barra wrote in the company's first quarter letter to shareholders. The company delivered 20,000 EVs in the first quarter.
For Tesla, the partnership is another example of the company working to leverage its first-mover advantage in the EV space as demand for its actual vehicles comes under pressure.
Several industry analysts recently told Yahoo Finance that Tesla's partnership with Ford would be a positive tailwind for Tesla's revenue moving forward.
"Recall in our 2022 report that we sized the potential for Tesla opening its network more widely in the next few years (i.e. more than just Ford) at $1-$3 bn of incremental revenue (although Tesla wouldn’t necessarily capture all of this)," Goldman analyst Mark Delaney wrote in a note following the Ford deal.
"We believe the news is a modest incremental positive for Tesla as it will likely bring in additional profits and help Tesla to sustain the most robust charging network, albeit with some risk of fewer vehicle sales."
Josh is a reporter for Yahoo Finance.
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