The charging standard established by electric vehicle stock Tesla (NASDAQ:TSLA) took one step closer to becoming the universal standard for electric vehicle charging. Honda Motor Company (NYSE:HMC) reached an agreement with Tesla that will see Honda use the North American Charging Standard for all the electric vehicles it produces starting in 2025.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The timing works out well for Honda, as it plans to introduce a new model of electric vehicle in the United States in 2025. While it does have some other EV models, those will use a Combined Charging System port, which will have an adapter ready for use in the near future. But Honda isn’t just modifying its own cars here. It’s also working with Tesla and others on establishing the necessary infrastructure to make electric cars a truly viable choice.
Seven different automakers are getting together to build a complete charging network. Tesla Supercharger stations will likely be a substantial part of this network, and that should help adoption rates at least somewhat as it removes a key objection from customers’ minds. This is also good news for Tesla, as Supercharger stations are considered some of the best around.
Analysts, however, maintain their wait-and-see stance. With 12 Buy ratings, 13 Holds, and five Sells, Tesla is considered a Hold by analyst consensus. Further, with an average price target of $257.75, Tesla shares offer a meager 2.65% upside potential.
