When Ford (F) announced a deal to use Tesla’s (TSLA) charging networks for its EVs, it re-shaped the EV charging market.
General Motors (GM) had no choice but to follow Ford’s actions. GM stock bottomed below $32 and rose as high as $38 last week. It closed at $36.23 on June 9.
The mega deal will validate short-sellers who bet against charging network firms. The short float on ChargePoint Holdings (CHPT) was 18.5%. Shorts had a 32.5% short float on EVgo (EVGO) stock. Blink Charging (BLNK) has a short float of 34%. Wallbox (WBX), another stock to avoid, will likely trend lower.
Tesla is the biggest winner from the deal. It increases the revenue potential from selling electricity through its stations. As it expands, more vehicles will rely on nationwide charging stations. Tesla owners will not mind, since the stations are under-utilized. GM and Ford have very few EVs on the road. This will not cause any congestion.
Stock markets cheered. TSLA stock failed to fall below $100 in 2023. It recently bottomed at $160 in May. From there, shares rallied to around $245 as of last week.
Tesla secured its long-term prospects as an EV supplier and as a charging station utility for the clean vehicle market.
