Elon Musk’s Big New Tesla Announcement Paves the Way for GM, Future of EVs

Not long after the May 25 announcement that Ford customers would be gaining access to Tesla’s supercharging network came more big news: General Motors is now doing the same thing. 

The announcement that  (GM) – Get Free Report and  (TSLA) – Get Free Report would be teaming up came during a June 8 Twitter Spaces conversation between each company’s respective CEOs — Elon Musk and Mary Barra. 

DON’T MISS: Elon Musk’s Latest Tesla Announcement Could Shake Up the Entire EV Industry

Despite the magnitude of the arrangement, Deepwater Management analyst Gene Munster thinks the move helps out the competition more than it helps out Tesla. 

“I view this more as a positive for GM and  (F) – Get Free Report. It’s probably a neutral to slight positive for Tesla because they will pick up some infrastructure revenue,” Munster told CNBC. “But ultimately, they are giving the rails to these competitors which have been struggling. I think ultimately what Elon is doing here is he’s making good on his promise that he wants to advance electrification.”

“I think he’s doing this as more of a move for greater EVs than a positive for Tesla.”

Munster said that now, with two of the biggest names in traditional auto partnering up with Tesla, more might not have a choice but to follow. 

“I was surprised at the speed, I think it took two weeks for GM. I think it was a telling sign,” he said. “Other car makers, they can’t build their own infrastructure, they have to adopt at this point. This is Tesla turning the screw down on the infrastructure piece.”

Munster said that, in the wake of this partnership, other charging companies, as well as traditional auto, are in “a tough spot.”

“Tesla’s going to run the table on these charging networks,” he said.

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