Analyst: By 2030, Tesla Superchargers Could Bring in $10-$20B a Year

Analyst: By 2030, Tesla Superchargers Could Bring in $10-$20B a Year

Tesla CEO Elon Musk has said in the past that the Supercharger network would “never be a profit center,” adding that it was simply meant to help sell the company’s electric vehicles. However, one analyst recently shared predictions for the Supercharger business that suggest it could start generating significant revenue in the years to come, especially with recent charging deals surrounding Tesla’s hardware.

Above: A Tesla Model Y at a Supercharger (Image: Casey Murphy / EVANNEX).

Wedbush Securities analyst Daniel Ives said last week that he expects Tesla’s Supercharger network to generate as much as $10 to $20 billion per year by 2030, as reported by electrek. Supercharger stations, which Tesla initially launched in 2012, have now become the largest DC fast-charging network in North America, and charging companies and automakers alike are jumping at the bit to gain access to them.

Ives says he expects Tesla Superchargers to make up between 3 and 6 percent of total revenue by 2030. Ives currently has a price target of $350 on Tesla stock with an Outperform rating. He adds that Tesla’s recent charging deals could help the automaker hold its dominant position in an expanding market for EV charging.

Supercharging efforts have been spurred on by new deals with traditional automakers which plan to use Tesla’s charging hardware in future vehicle builds. Companies including Ford, General Motors, Rivian and a number of others have agreed to begin building EVs with the Tesla charging port, dubbed the “North American Charging Standard,” in the coming years. Currently, these companies make EVs that include the Combined Charging Standard (CCS).

Above: Charging infrastructure is the next stage of Tesla's monetization, says Wedbush's Dan Ives (Video: CNBC via YouTube).

Tesla will also begin adding its “Magic Dock” adapters to Superchargers around North America, which enable current EVs from other brands with CCS chargers to easily charge using. This, Ives writes, could be a catalyst for significantly increased revenues on Supercharging down the road.

“With the introduction of Tesla’s Magic Dock, an adapter that will allow non-Tesla EVs to charge on the NACS standard, this provides the company an incremental opportunity to further expand its charging footprint to the entire EV fleet,” Ives said in a note to clients.

“We view this as another strategic move by Musk & Co. in the long-term story as the supercharger network is a large monetization opportunity with the company now taking more market share in the charging network ecosystem domestically while laying the foundation for a successful EV transformation over the next decade,” Ives added.

Ives has long been bullish on Tesla, most recently raising his target to $350 in July. As electrek points out, Ives is ranked highly on TipRank, a financial analyst rating system, holding the 121st spot out of a total of 8,527 analysts.


Sources: electrek / CNBC (via YouTube)