Tesla shares rose Monday on the heels of reports that competitors are pursuing partnerships to build electric car-charging stations. And investors bet that the ability to easily make cars compatible with Tesla's supercharging stations -- given that Elon Musk is sharing the electric car company's patented designs -- is driving the interest.
The Financial Times reported Sunday that Nissan and BMW are interested in cooperating on building charging networks. Tesla shares rose more than 3% by noon Monday. Sentiment increased 1.4% to 77% bullish, according to StockTwits' analytics.
$TSLA Tesla Motors: Nissan (NSANY) and BMW (BAMXY) are in talks with TSLA about charging stations, according to reports - New intraday high — Timothy Kelleher (@TimKelleherCorp) Jun. 16 at 09:57 AM
[US] News | Tesla | Tesla Patent Giveaway Spurs Speculation Of Possible Deal With BMW http://stks.co/d0e4a — Hey Youa„¢ (@heyyouapp) Jun. 13 at 02:16 PMTesla CEO Elon Musk announced the electric car company would share its patents with competing car makers last week in an effort to encourage the widespread manufacture of electric vehicles. Both BMW (BAMXY) and Nissan (NSANY) have significant traction in the all-electric car market. Nissan's Leaf, which costs less than $30,000, is the industry leader. Nissan sold 3,117 Leafs in May alone, and has sold well over 10,000 vehicles this year. BMW sold 336 of its i3 electric car in May, according to Green Car Reports. Currently, Tesla has 97 supercharger stations in the U.S., 20 in Europe and three in Asia, according to the company's Web site. It will need far more than those to make consumers feel confident about traveling for long trips without losing juice and ending up on the side of the road -- specially since consumers have become accustomed to having a gasoline station within a short drive of wherever they are. In the U.S., there are more than 150,000 gasoline stations. But Nissan and BMW could certainly help Tesla make powering up electric cars far easier. In addition to building charging stations, the companies can encourage independent power companies to build their own stations if they sell enough cars to create demand. One can imagine filling up at a PSEG (PEG)-run station or an electric station covered in solar panels from the likes of SunPower (SPWR - Get Report). At the time of publication, the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff. Congress Readies Hearings on AT&T, DirecTV Tie-up Medtronic to Pay $43B for Ireland's Covidien 5 Reasons So Many Seniors Fall Victim to I.D. Theft Fusion-io Soars Following SanDisk Buyout