A Wedbush analyst predicts that Tesla’s Supercharger network could become a significant revenue stream, estimating it to be a $10 to $20 billion business annually by the end of the decade.
When Tesla first introduced the Supercharger network in 2012, it was primarily intended to facilitate long-distance travel for Tesla owners and help promote the adoption of electric vehicles (EVs). CEO Elon Musk stated that the network would not be a profit center for the company.
However, with the expansion of Tesla’s vehicle fleet and the opening of the Supercharger network to other EVs, financial analysts now see it as a substantial business opportunity. Wedbush Securities analyst Dan Ives believes that the Supercharger network could generate 3% to 6% of Tesla’s total revenue, equivalent to $10 to $20 billion by 2030.
The introduction of the “Magic Dock,” an adapter that allows non-Tesla EVs to charge on the NACS standard used by Tesla’s Supercharger network, is seen as a strategic move to expand the charging footprint to a wider range of EVs. This move could further enhance Tesla’s position in the charging network ecosystem and contribute to its long-term growth.
While the initial goal of the Supercharger network was to support Tesla’s vehicle sales and EV adoption, it is now poised to become a significant revenue driver and a crucial component of the company’s transition to electric mobility over the next decade.