Ford enters into partnership with Tesla 🚗

4:49 PM May 30, 2023

Tesla (TSLA.US) and Ford (F.US) shares values up 2.5% and 4.5% respectively on the announcement of the collaboration between the companies and a number of other unit factors. Ford will collaborate with Tesla on charging initiatives for its current and future electric cars.

Under the agreement, announced by Ford CEO Jim Farley and Tesla CEO Elon Musk, current Ford car owners will have access to more than 12,000 Tesla Supercharger stations in the US and Canada from early next year. What's more, the next generation of Ford electric cars is expected to be equipped with a charging plug from Tesla, which will allow Superchargers to be used without an adapter.

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What's more, the charging price itself is expected to be "competitive in the market", however, on this matter, details will only be provided closer to the launch date.

The sheer scale of the share price rally is significantly higher for Ford, which additionally benefits from a raised recommendation from Jefferies. The agency analyst raised his rating to 'buy' from an earlier 'hold' and raised his target price from $13 to $16 per share. Jefferies primarily noted an increase in confidence that the Ford team has an action plan to improve its ability to meet its targets.

Ford (F.US) shares continue to trade in the zone defined by the wedge formation bounded by the resistances marked in red and green. Source: xStation 5

On the other hand, Elon Musk, during a meeting with Foreign Minister Qin Gang in Beijing, pledged to maintain ties with China, as did other leading representatives of car and technology companies, including Tim Cook of Apple Inc. and Ola Källenius of Mercedes-Benz Group AG. Tesla opposes separation from China and is ready to continue its expansion in the country. In addition to the official visit, Musk is expected to visit Tesla's factory in Shanghai to discuss the planned introduction of autonomous driving technology in China, anonymous sources said.

Tesla (TSLA.US) shares are currently testing resistance around the 23.6% Fibo retracement of the downward wave initiated in November 2021. Source: xStation5 

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