Tesla rips a big gain with analysts highlighting Supercharger revenue potential
Spencer Platt
Tesla (NASDAQ:TSLA) shot higher in early trading on Friday and could be on its way to an 11th straight day of gains.
Following the late announcement on Thursday on a battery vehicle partnership with General Motors (GM), the electric vehicle stock was added to the Best Ideas List at Wedbush Securities and given a higher price target of $300.
Analyst Dan Ives and team believe Tesla (TSLA) is on track to hit its 1.8M unit delivery bogey for the year and should see margins ramp back up into FY24. The firm estimated the new EV battery charging deals with Ford and General Motors could add another $3B to services EV charging revenue for Tesla (TSLA) over the next few years in another accretive poker move by the Austin-based company.
Evercore ISI estimated that by 2020 the Tesla (TSLA) Supercharger network could generate $4B to $6B in total revenue, with about $1.1B to $1.B coming in from non-Tesla customers.
On Seeking Alpha, analyst Doron Levin said Tesla (TSLA) opening its charging network strengthens the buy case by creating a potential new revenue stream, the sale of automotive electricity.
"The chargers will have a marketing value for Tesla vehicles as well, acting in a sense free-standing advertisements," he noted.
Shares of Tesla (TSLA) were up 6.02% to $249.00 at 7:48 a.m. The EV stock has rallied more than 35% over the last six weeks and trades well-above the 100-day and 200-day moving averages.
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Seeking Alpha's Quant Rating for Tesla