Automotive giant General Motors (GM) has announced plans to utilize Tesla’s (TSLA) North American electric vehicle charging network.
Under terms of the deal, General Motors’ electric vehicles will be able to access 12,000 Tesla fast chargers beginning in 2024.
The deal between General Motors and Tesla follows a similar partnership announced by the Ford Motor Co. (F), which will also use Tesla’s infrastructure in Canada and the U.S.
General Motors’ chief executive officer (CEO) Mary Barra said that the deal with Tesla will save it up to $400 million U.S. The company had previously planned to spend $750 million U.S. to build its own charging network.
The partnerships with Ford and General Motors are a win for Tesla and its technology and should provide the company with a reliable and predictable income stream for years to come.
Tesla has 45,000 electric vehicle superchargers worldwide at nearly 5,000 supercharger stations.
The deal with Tesla is expected to more than double Ford and General Motors’ customers access to fast chargers and dramatically increase use of Tesla’s charging network.
The stocks of both Tesla and General Motors rose more than 5% on news of the deal.
