Tesla, the leading electric vehicle maker, has recently announced several deals with other automakers to allow them to use its Supercharger network in North America. This move is expected to generate up to $20 billion in revenue for Tesla by 2030, according to a new report by Wedbush analyst Dan Ives.
Tesla Opens Its Supercharger Network to Other EVs
Tesla has built the most extensive and advanced charging infrastructure for electric vehicles in the world, with over 25,000 Superchargers across 37 countries. Until recently, only Tesla owners could access these stations, which offer fast and convenient charging for long-distance travel.
However, in July 2023, Tesla CEO Elon Musk confirmed that the company would open its Supercharger network to other electric vehicles later this year. He also revealed that Tesla had developed a new charging standard for North America, called the North American Charging Standard (NACS), which uses a proprietary connector that is compatible with Tesla’s vehicles.
Since then, Tesla has signed agreements with several major automakers, including Ford, General Motors, Rivian, Mercedes-Benz, Nissan, and Volvo/Polestar, to adopt the NACS connector and gain access to the Supercharger network starting from 2024. These automakers will also start producing their electric vehicles with the NACS port from 2025 onwards.
Tesla to Gain Up to $20 Billion in Revenue from Supercharger Deals
According to Wedbush analyst Dan Ives, who is known for his bullish outlook on Tesla, these Supercharger deals will bring significant benefits to Tesla in terms of revenue and market share. In a note to investors on August 28, 2023, he wrote:
“To dive deeper into this sum-of-the-parts valuation, we modeled & projected out Tesla’s supercharger network, taking into account access & revenues from other OEMs using stations across the United States. Ultimately, we estimate that Tesla’s supercharger business will be roughly 3%-6% of total revenues, translating to a $10 billion – $20 billion business by 2030.”
Ives also noted that the Supercharger network is just one of the many factors that contribute to Tesla’s success story in the electric vehicle industry. He cited Tesla’s energy business, AI-driven autonomous path, unmatched battery ecosystem, and increased production scale as other key drivers of its growth and profitability.
Tesla Faces Competition from Other Charging Networks
While Tesla’s Supercharger network is widely regarded as the best in the industry, it is not the only one. There are other charging networks that offer different standards and connectors for electric vehicles, such as Electrify America, ChargePoint, EVgo, and Blink.
These networks are also expanding their coverage and capacity to meet the growing demand for electric vehicle charging. Some of them have partnered with automakers such as Volkswagen, Hyundai, Kia, BMW, and Toyota to provide charging solutions for their customers.
Tesla’s decision to open its Supercharger network to other EVs may be seen as a way to compete with these networks and establish its dominance in the charging market. However, it may also face some challenges such as managing the increased demand, ensuring compatibility and interoperability, and maintaining customer satisfaction.
Tesla has not yet revealed the details of how it will charge other EVs for using its Superchargers. It is likely that it will use a dynamic pricing model that varies depending on factors such as location, time of day, and battery level. It may also offer different subscription plans or discounts for frequent users.
Tesla has also stated that it will prioritize its own customers over other EVs in case of congestion or limited availability at its Superchargers. This may cause some frustration or inconvenience for non-Tesla owners who want to use the network.
Tesla Continues to Innovate and Lead the EV Market
Despite the potential challenges and competition, Tesla’s move to open its Supercharger network to other EVs is seen as a positive and strategic step by many analysts and experts. It shows that Tesla is confident in its product quality and customer loyalty, and that it is willing to share its technology and infrastructure with other players in the industry.
Tesla’s Supercharger network is not only a source of revenue for the company, but also a way to promote its brand image and mission of accelerating the transition to sustainable energy. By allowing other EVs to use its network, Tesla may attract more customers who are interested in its vehicles or services.
Tesla may also benefit from the increased adoption of electric vehicles in general, as it will create more awareness and demand for its products. As more people switch to electric vehicles, they will also need more energy solutions such as solar panels, batteries, and powerwalls, which Tesla also offers.
Tesla is not resting on its laurels, however. It is constantly innovating and developing new products and features that will enhance its competitive edge and customer experience. Some of the upcoming projects that Tesla fans are eagerly anticipating include the Cybertruck, the Semi, the Roadster, the Model 2, and the Full Self-Driving software.
Tesla’s Supercharger network is one of the many reasons why Tesla is the leader and pioneer of the electric vehicle industry. By opening it to other EVs, Tesla is showing its vision and generosity, as well as its ambition and confidence.