Huge deal everyone is talking about

Ford Motor Company experienced a significant boost, surging 6.2% following the late Thursday announcement of a major collaboration with Tesla. This ground-breaking deal will enable Ford-produced electric vehicles, including the F-150 Lightning, Mustang Mach-E, and E-Transit, to access Tesla Supercharger stations in the United States and Canada. While these Ford models equipped with the Combined Charging System (CCS) port will require a Tesla-developed adapter to utilize the stations, Ford revealed plans to incorporate Tesla's NACS charging port in its cars starting from 2025, eliminating the need for an adapter. The agreement is set to take effect in the spring of 2024, resulting in a 4.7% increase in Tesla shares.

Additionally, Ford recently disclosed details about its upcoming three-row electric SUV, emphasizing its fast-charging capability, range of 350 miles per charge, and ambitious goal of producing 2 million EV units by the end of 2026. In other news, Tesla confirmed the arrival of China-made Model 3 and Model Y cars in Canada, allowing the company to maintain its supply for the U.S. market while delighting Canadian enthusiasts. [1]

Movement of Ford´s stock in the last five years. (Source: Google Finance) *

Cathie Wood about Tesla and AI

Cathie Wood, the manager of the ARK Innovation exchange-traded fund, expressed her belief that Tesla is a company poised to reap the rewards of recent advancements in artificial intelligence (AI). In a series of tweets, Wood questioned Nvidia's projected 25-fold increase in sales for 2023 and suggested that other players might benefit more from the forthcoming AI boom. Wood specifically pointed to Tesla as the primary beneficiary, noting the company's focus on autonomous driving technology and predicting a substantial revenue total addressable market (TAM) of 8-10 trillion USD in autonomous mobility by 2030. [1] [2]

Elon Musk realised he made a mistake in 2011

Elon Musk, CEO of Tesla, expressed respect for the Chinese electric vehicle (EV) maker BYD, despite having laughed at its vehicle quality in a 2011 video. Musk's response came after watching a Bloomberg interview in which he mocked BYD as a competitor and belittled its cars. However, Musk acknowledged that the video was from many years ago and recognized that BYD's cars are now highly competitive. This shift in attitude reflects BYD's recent success, with surging profits, increased vehicle sales, and its position as the top-selling brand among automakers in China, surpassing Volkswagen. Industry insiders, including Volkswagen CEO Oliver Blume and Berkshire Hathaway vice chairman Charlie Munger, have also praised BYD's strength and achievements. Musk's laughter at BYD in the past seems ironic now, given BYD's impressive growth and market dominance in China. [3]

In other news, Elon Musk landed in China. It is expected that he will try to strengthen the market and become more competitive in it.

Movement of Tesla´s stock in the last five years. (Source: Google Finance) *

Conclusion

Decision to make partnership between Ford and Tesla will benefit both. Tesla will get financial part of it, and Ford’s cars could now attract more customers, as they will have more options and faster option to charge their cars. Regardless, both companies are top class in the vehicles sector, meaning that it could pay off to follow them and if market allows, make an action. [2]

Adam Austera, chief analyst at Ozios

* Past performance is no guarantee of future results.

[1,2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

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[1] https://www.investing.com/news/stock-market-news/fords-huge-deal-with-tesla-ev-hits-this-week-3092574

[2] https://finance.yahoo.com/news/cathie-wood-says-nvidia-too-011707869.html

[3]https://finance.yahoo.com/news/elon-musk-admits-byd-cars-175011079.html