Tesla Stock Surges on Major European Expansion Deal with Eg Group

Tesla Stock Surges on Major European Expansion Deal with EG Group

Tesla stock soared in afternoon trading on Monday after the British gas station operator EG Group, owned by the billionaire Issa brothers, revealed plans to purchase Tesla ultra-fast charging units to bolster its electric vehicle charging network across Europe.

The plan involves expanding its charging network to over 20,000 EV chargers at its sites, a significant leap from the current 600. This initiative aligns with Tesla’s ongoing efforts to extend the footprint of its charging business.

The first batch of Tesla chargers is scheduled for installation by the end of this year. However, specific details regarding the overall cost and timeframe for the entire purchase remain undisclosed.

The Tesla charging stations will operate on an “open network” model, welcoming all EV drivers irrespective of their vehicle’s brand.

The stock market responded positively to the news as Tesla stock experienced a 3.68% increase, reaching a trading value of $222.54.

Rebecca Tinucci, Tesla’s senior director of charging infrastructure, expressed enthusiasm, stating,

“The rapid installation of reliable, easy-to-use EV charging infrastructure is the right step towards a sustainable future.”

This collaboration underscores the growing significance of EV adoption in achieving British and European climate goals. The automotive industry has been urging accelerated expansion of public charging networks to incentivize drivers to transition to electric vehicles.

This development follows Tesla’s earlier commitment in February to open part of its U.S. charging network to rival EVs as part of a $7.5 billion federal program to expand electric vehicle usage and reduce carbon emissions.

BP’s EV charger unit made headlines last month with a $100 million order of Tesla ultra-fast chargers for its U.S. network. Ford Motor Company (NYSE: F) also joined the trend, announcing plans to incorporate more of Tesla’s superchargers into its EV charging network than initially projected.

The government data indicates that the United Kingdom had installed slightly more than 49,000 public charging devices for electric vehicles as of October 1.