Updated: Nov 24
Wall Street technology analyst Dan Ives believes that Tesla's Supercharger Network can become a very big business for Tesla in the years to come, in the same way that "AWS" became a growth driver for Amazon, or "Services" became a growth driver for Apple. The numbers support this. So strongly agree.
The Supercharger Network has over 90% share of all the rapid charging sessions in the U.S. So, there is little competition in the rapid charging space. In 2022, The Supercharger Network provided a Terawatt Hour (one billion kWh) of electricity in the US for the first time. Expect this to increase to 5 TWh by 2027.
Since 55% of Tesla's 48,082 Supercharger Ports are located outside the U.S. global usage of the Supercharger Network surpassed 2 TWh in 2022 and will exceed 10 TWh by 2027.
Building out a profitable charging business requires massive scale, and Tesla has a significant first-mover advantage, and much more favorable unit economics than its competitors.
"Spending on Tesla's Supercharger network has been significant, with charging stations costing a hefty $42,000 per connector. The resulting financial burden aside, Tesla stations are much more cost-effective compared to the $100,000 to $250,000 per connector spent by rivals, according to a report by Bloomberg"
Chart from 2023 Tesla Investor Day Presentation: Rebecca Tinucci Presentation
With the opening up of The Supercharger Network to non-Teslas, and open sourcing of The Supercharger Technology to other EV charging equipment manufacturers, Supercharger is on its way to becoming a massive global business within Tesla.
Each TWh will generate around $250+ million in annual revenues. It's high margin revenue and great for the climate, since 100% of the energy used across the Supercharger Network is sourced from renewable energy.