Breaking News

Is Ford's Charging Network A Headache For Tesla?

By Zacks Investment ResearchOct 18, 2019 02:07AM ET
Is Ford's Charging Network A Headache For Tesla?
By Zacks Investment Research   |  Oct 18, 2019 02:07AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Tesla (NASDAQ:TSLA) easily has the largest charging network out there with its 4,375 public charging stations and around 15,000 plugs. About a third of these enable fast charging and with upcoming new technology, it will be able to pump 75 miles (250KW) of power in about five minutes. Because Tesla mans and manages its own charging stations, which are only available to Tesla owners, this has always been a key differentiator, other than its beautiful designs.

But Ford (NYSE:F) has other plans. According to Ford spokesperson Emma Bergg, “We’re taking away all that hassle factor… That’s what we’re doing for our whole electrification plan: a seamless experience, so that jumping from internal combustion engines is not such a big deal.”

To make this a reality, the company laid out plans for its charging station network, before the 2020 launch of its first Mustang-style SUV that was from the get-go, designed to be an electric car.

And it’s not doing it alone. Electrify America will help it build the charging stations and also supply DC fast chargers. Shell (LON:RDSa) Group's Greenlots will create a platform for independent charging providers to connect with buyers that Ford users can access through their FordPass apps. General Motors (NYSE:GM) , which is building a large network of public chargers with its construction partner Bechtel could even join this network later.

Ford expects this network to have more than 12,000 charging locations with more than 35,000 plugs, or more than double Tesla’s footprint. Of course, since these are independent providers, the stations will be open to all and not just Ford users.

But Ford users have an advantage in that they can go check their apps or dashboard for the closest station and make an in-app purchase rather than subscribing to the individual networks. And then, they can add 47 miles in 10 minutes, or get up to an 80% charge of their batteries in about 40 minutes. This isn’t as good as Tesla, but it’s worth noting that the market continues to evolve.

Further, since most people actually charge their batteries at home, Ford said it is working with Amazon (NASDAQ:AMZN) Home Services to install at-home chargers for Ford users.

How It Affects Tesla

Since fuel is what drives vehicles and since electric cars can only go so far on a single charge, the availability of charging stations becomes very important. Tesla is ahead of the pack here, since its EVs do more than 300 miles, with the Model S doing significantly higher. No other manufacturer has that range yet, so these other cars need relatively more frequent charging.

The network approach sounds like a really good idea, especially if traditional automakers (competitors) agree to collaborate on charging stations. The number of EVs on the roads is increasing, so with easier charging available, competition is set to increase rapidly for Tesla. But it also means that it could lead to more mass-market appeal with positive kickbacks for Tesla, which is already seeing more demand than it can handle.

The U.S. Department of Energy estimates the cost per gallon to charge an EV at around $1.21, less than half the cost of a gallon of gas, which is estimated to be $2.65. This can further increase EV appeal.

So is this good news or bad news for Tesla? The answer is, it’s too soon to tell.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>

Ford Motor Company (F): Free Stock Analysis Report

Tesla, Inc. (TSLA): Free Stock Analysis Report

General Motors Company (GM): Free Stock Analysis Report

Original post

Zacks Investment Research
Is Ford's Charging Network A Headache For Tesla?
Is Ford's Charging Network A Headache For Tesla?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email