Deal with Tesla Saves GM $400M

GM is looking to save up to $400 million through a deal with Tesla to charge electric vehicles. Tesla will give GM electric vehicle owners access to more than 12,000 Superchargers starting next year.

Tesla deal will save GM $400 million

On Thursday, Tesla and GM announced a deal. As part of it, Tesla will provide its extensive Supercharger network for GM electric vehicles starting in 2024. GM electric vehicles will also be equipped with Tesla charging ports starting in 2025. General Motors CEO Mary Barra told CNBC that this deal with Tesla will save her company up to $400 million. This investment was planned to build charging stations for the manufacturer’s electric vehicles in the US and Canada.

“We think we can save up to $400 million in the original three-quarter of a billion dollars that we allocated to this, because we’ve been able to do it faster and more effectively,” Barra said Thursday in an interview with CNBC. “We’re really looking for ways that we can be more capital efficient, as we go forward.”

GM planned to spend $750 million to create its own network of charging stations

In October 2021, GM said it planned to spend $750 million on electric vehicle charging infrastructure in the US and Canada. This included home, workplace, and public charging stations throughout the countries.

GM is open to licensing other Tesla technologies

It seems GM and Tesla have finally reconciled. Even though they are competitors in the automotive market, the electrification of the sector is an important task. Tesla has always strived to accelerate the transition of the world to sustainable energy, so it has been open to various collaborations. The company’s patents are also open for use to other manufacturers.

Barra, when asked about licensing other Tesla technologies, said the company is open to it. She stated that GM is “going to always look for ways to be more capital-efficient” and “if there’re other opportunities to partner, you know, we’re going to be very open to them.”

The GM-Tesla deal follows the Ford-Tesla deal

The GM-Tesla deal comes after Ford recently announced a similar one. The company will also have access to the Tesla Supercharger network starting in 2024. Initially, EV owners will need to use the Magic Dock to connect to chargers. Starting in 2025, Ford EVs will also be equipped with Tesla charging ports.