A large oil company is pushing further into the electric vehicle sector with two recently announced initiatives. Here’s the latest.
Shell, BYD Partner: Oil giant Shell PLC (NYSE:SHEL) is partnering with BYD Company (OTC:BYDDY), a Chinese automotive company, on electric vehicle charging networks in China.
A joint venture will see the two companies work together in Europe and China, with an initial focus on the charging network in China.
The agreement was signed Wednesday and covers electric vehicles and plug-in hybrid vehicles.
The partnership will see Shell offer membership services covering over 275,000 charging terminals for BYD customers. The joint venture will also set up fleet solutions for additional customers. Plans also call for the installation of battery swap stations in China by 2025 and testing battery swap stations in Europe.
The two companies will also work on providing additional home energy solutions, which could include vehicle-to-grid charging and solar integration.
After developing operations in China and Europe, the two companies plan to expand the partnership globally.
The move follows a similar partnership signed between Shell and electric vehicle company Nio Inc ADR (NYSE:NIO) back in November.
BYD is one of the largest electric vehicle companies in Asia and is backed by Warren Buffett’s Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B). BYD was the No. 8 largest Berkshire stock holding in a report issued in February 2022, which showed a stake of 7.7% of the company valued at $7.7 billion.
Related Link: This Big Oil Company Wants To Bring Electric Vehicle Chargers To Gas Stations
Tesla Subscriptions: Shell has an electric vehicle subscription program. Among the vehicles offered in the subscription program are Tesla Inc (NASDAQ:TSLA) vehicles, including the Tesla Model 3 and Tesla Model Y.
In Germany, Shell offers a Tesla Model 3 Standard Range subscription plan that costs $650 a month and includes 20,000 kilometers (12,427 miles) and comes with several perks, according to Teslarati.
The monthly costs include car insurance, new tires and maintenance. The plan also includes access to Shell’s charging stations in Germany.
Shell’s subscription plan website shows a wait time of 20 to 24 weeks to get on a monthly plan for a new Tesla vehicle. The new production facility Giga Berlin in Germany could help Shell ramp up its fleet in Germany.
The subscription plan for Tesla vehicles from Shell is only available to permanent German residents. Shell has no current plans to offer subscriptions for the Tesla Model S or Tesla Model X.
Why It’s Important: Shell acquired Greenlots in 2019, an electric vehicle charging and energy management software company. The acquisition was moved into the Shell New Energies umbrella and helped push the oil company into more opportunities in charging stations.
Shell has launched chargers at several of its gas stations around the world and has plans to have 500,000 chargers by 2025 around the world.
The partnerships with BYD and Nio signal Shell’s intent to grow in the electric vehicle charging space.
Shell’s subscription plan could signal a potential revenue driving business. Both items could help push the company forward as electric vehicles take share away from traditional ICE units.
SHEL Price Action: Shell shares were trading 0.58% higher at $55.09 Thursday morning.
Photo courtesy of Tesla.
