Tesla Could Become a Literal Powerhouse, But Not in the Car Market

Ford Motor Company CEO Jim Farley has it right when he says that EV adoption comes down to charging infrastructure, and the deal it sealed with Tesla not only bodes well for Ford and Tesla, but it also bodes well for potential customers who want to consider buying a Ford electric car ultimately.

Granted, there are a lot of asides here. There is much work to be done as well to ensure we have an electric grid that can handle the capacity needed if more adoption occurs, and I think even when it comes to charging stations, the speed at which charging needs to occur has to increase.

We may never get to a point when you can charge your car nearly as fast as you can gas up. But if the time gap can be further closed, which I think technology can advance enough to eventually figure that out, it becomes more of a game changer.

The fact is that among charging technologies, Tesla leads the way and I think they will continue to do so. That makes the Ford deal even more attractive since other automakers may make similar deals with Tesla to convert their chargers to the one that Tesla was using exclusively with its cars.

Ultimately, I think Tesla can become to EV and charging what big oil became to cars.

And certainly, Tesla has the advantage. It has invested the most in the technology as well as adding charging stations across the country.

Elon Musk recently said that he thought autonomous driving was the key to Tesla stock and the company growing. I continue to believe he is wrong about that. I think the driving experience is still at the forefront of car buyer's interests and will remain so. 

People want the experience of driving.

And when it comes to most other automakers, that's the experience they are building into their offerings. Ford, for example, with it's Mach-E Mustang. It's about driving and performance and muscle. Chrysler is doing the same as it electrifies its Chargers and Challengers.

I don't think Tesla will lead in cars, but rather in EV charging. And I think that's a big deal. I also think that alone makes Tesla an attractive company to own right now, which is a major shift for me than the thoughts I had before.

I continue to prefer Ford and Rivian when it comes to automakers, and I have shied from Tesla mainly because I feel Tesla simply appeals to a different kind of car buyer than any of the other automakers appeal to.

Tesla is about technology, and it appeals to those customers interested in that as well as an environmentally conscious crowd. That's a different customer than one who wants to buy a Ford F-150 Lightning or a Rivian R1S. 

The shift to charging is what appeals to me now when it comes to Tesla as an investment. And if it shares its charging stations, it may also eventually share its technology. And that side of Tesla's business, I think, could be far more valuable than the cars it wants to sell. It could literally become an industry on its own which Tesla would likely dominate.

Can I imagine a time when most other cars on the market are adorned with a label much like many computers are, Intel Inside to simply say Powered by Tesla?

Yes. As a matter of fact, I can.

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