Tesla‘s Supercharger network is more than just a bunch of charging stations it’s an emerging financial giant. A few years ago, Tesla claimed its Supercharger stations would “never be a profit center.” Time to revisit that statement, as a Wall Street analyst predicts it could soon be worth up to $20 billion.
With superchargers, Tesla has already set an Industry standard for EV Charging
Dan Ives of Wedbush Securities estimates that the Supercharger business might contribute up to six percent of Tesla’s total revenues by 2030. That’s no chump change, especially when you consider that this assessment accounts for deals like the North American Charging Standard (NACS) agreement with multiple automakers, Tesla’s energy ventures, and its AI investments.
The NACS agreement alone has already roped in big names like Ford, General Motors, and Mercedes-Benz. So, Tesla’s not only increasing its Supercharger revenue but is also setting the industry standard for EV charging. Not bad for a side business!
Interestingly, Tesla still plays the nostalgia card. Remember the days when Model S and Model X owners could charge up for free? Those days are gone, but Tesla still knows how to dangle the carrot. As of June 2023, they were offering three months of free unlimited supercharging for new Model 3 customers. A sweet deal for buyers, and a clever strategy to make their Supercharger network more appealing.
What’s also noteworthy is that other manufacturers who jump on the NACS bandwagon don’t pay licensing fees. But, Tesla does charge the customers for using the Supercharger stations, thereby sowing the seeds for this side business to sprout into a financial powerhouse.
Elon Musk may hint at further price cuts for Tesla cars, but when it comes to Supercharging, the strategy seems to be different. It’s a carefully crafted chess game, where each move, from licensing agreements to temporary freebies, is designed to make Tesla’s Supercharger network not just an asset, but perhaps, its future goldmine.