Tesla's Supercharger business is seen growing to be a $20B revenue monster
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Wedbush Securities reiterated its Outperform rating on Tesla (NASDAQ:TSLA) on Friday.
Analyst Dan Ives said Tesla's (TSLA) supercharger network is key to the overall sum-of-the-parts story on the electric vehicle stock as the Austin-based company focuses on expanding its charging network beyond solely Tesla models.
Ives noted that while only ~5k superchargers are currently on the grid, Tesla (TSLA) agreed to double the network earlier this year under President Bidenâs $7.5B charging initiative to build a national network of 500K EV chargers nationwide. The Supercharger network is seen as being in a great position to benefit from increasing charging needs over the next decade with the major auto players partnering on Teslaâs North American Charging Standard including Ford (F), General Motors (GM), Rivian Automotive (RIVN), Mercedes-Benz (OTCPK:MBGAF), Nissan (OTCPK:NSANY), Honda Motor (HMC), and Polestar Automotive (PSNY).
"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."
Wedbush estimated the Supercharger part of TSLA's business model to represent 3% to 6% of total revenue, representing an additional $10B to $20B in revenue by 2030 as the TSLA story continues playing out.
"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."
Wedbush Securities has a price target on Tesla (TSLA) of $350. Shares of TSLA traded flat at $230.08 on Friday during the premarket session.

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