GM CEO Mary Barra Announces $400 Million Savings from Charging Deal with Tesla

GM CEO Mary Barra Announces $400 Million Savings from Charging Deal with Tesla

General Motors (GM) has announced that it will save up to $400 million of its planned investment in building out electric vehicle (EV) charging infrastructure in the US and Canada after striking a deal with Tesla. The car manufacturer had planned to spend $750 million on this infrastructure, which would include home, workplace and public charging. However, the partnership with Tesla will allow GM to be more capital-efficient in its approach.

The Charging Deal

The deal between GM and Tesla will allow GM EV owners access to more than 12,000 of Tesla’s fast chargers, starting next year, using an adapter. The charging ports will be Tesla’s charging port instead of a current industry standard. This follows a similar deal between Elon Musk-owned Tesla and rival car manufacturer Ford, which was hailed as a “win-win” by Wall Street analysts.

The Savings and Future Plans

CEO Mary Barra stated that the savings of $400 million will come from being able to build out the infrastructure faster and more effectively. She also suggested that GM is open to licensing other Tesla technologies if it means being more efficient with capital. This is part of GM’s wider strategy to be more capital-efficient as it continues to develop its EV lineup.

Stock Market Reaction

After the announcement, both GM and Tesla saw their stocks rise more than 3% during extended trading on Thursday.

Overall, the deal between GM and Tesla is a significant development in the growth of EV charging infrastructure in North America. The partnership will allow GM to save significant amounts of money while still being able to offer its customers access to a large network of charging stations. This is a positive step forward for the EV industry as a whole, as it continues to expand and attract more consumers.

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