Tuesday, March 28, 2023
HomeMarketTesla and Biden Mend Fences. There's Positive Energy From Charging Deal.

Tesla and Biden Mend Fences. There’s Positive Energy From Charging Deal.

Tesla has built the nation’s largest network of direct current, fast EV chargers.

- Advertisement -


Brandon Bell/Getty Images

President Biden wants America to sell a lot more electric vehicles. He’s making sure there is enough charging infrastructure to bring that about. Even
Tesla
is helping.

That’s right, after years of snubs and barbs, Tesla (ticker: TSLA) and the White House are doing something together to push EV technology ahead in America.

Wednesday, the White House announced new steps to improve the nation’s EV charging network, including EV charging network standards and an additional $2.5 billion in discretionary grants to build charging infrastructure. The recently passed Inflation Reduction Act also included $7.5 billion in Federal funds for EV charging.

Eventually Biden wants 500,000 chargers along roads and highways to encourage EV sales. By 2030 he wants half of all new car sales to be all-electric.

The White House announcement also includes actions from companies. Tesla was the at the top of the list in the White House Document. Elon Musk’s car company is opening up a portion of its fast charging network to other EV owners.

At least 7,500 chargers will be accessible. Tesla owns the largest charging network in American and has more than 40,000 worldwide. Opening up the network, of course, will earn Tesla a little extra money while also building good will with the Presidential Administration.

The Biden Administration and Musk have had a strained relationship in recent years. It started with the President snubbing Tesla at an August 2021 event announcing his 50% EV goal. The event was attended by other auto makers and labor leaders. The snub led to several tweets by Musk including one calling the President a “UAW [sock] puppet.”

UAW is short for United Auto Worker and is the union that represents roughly 100,000
Ford
Motor (F) and General Motors (GM) employees. Tesla’s auto factories in the U.S. are not unionized.

Along with Tesla, GM,
Hertz
(HTZ) and
BP
(BP) also had EV charging announcements. Hertz and BP are building a network of fast chargers. GM,
EVgo
(EVGO) and Warren Buffett’s Pilot J rest stop operator will put 2,000 fast chargers at 500 Pilot locations.

Fast chargers, like the kind Tesla operates, use direct current and can get 200 to 300 miles of range in an EV in about 15 minutes.

Charging companies
ChargePoint
(CHPT), Electrify America and auto makers Ford and
Mercedes-Benz Group
(MBG.Germany) were also part of the announcement along with many other companies. It seems no one was left out.

The announcements aren’t having a big effect on stock prices. Tesla stock is up 0.5% in premarket trading Wednesday. GM, Ford and Hertz Ford shares are down a little in premarket trading. Shares of EVGo and
ChargePoint
are down about 1%.
S&P 500
and
Dow Jones Industrial Average
futures are down 0.3% and 0.2%, respectively.

Write to Al Root at allen.root@dowjones.com

Credit: marketwatch.com

RELATED ARTICLES
- Advertisment -

Most Popular