Analysts at Wedbush forecast Tesla Inc (NASDAQ:TSLA)'s supercharger segment could be a $10 billion to $20 billion business, making up 3% to 6% of the electric vehicle (EV)-maker’s total revenues by 2030.
They wrote that Tesla has agreed to double its current network of 5,000 superchargers under the Biden administration’s $7.5 billion charging network.
They also highlighted that many major auto players have partnered with Tesla’s North American Charging Standard (NACS), including Ford, GM, Rivian, Mercedes-Benz, Nissa, Honda/Acura, and Polestar with Hyundai in consideration.
“With Tesla production strong and OEMs lining up for access to its supercharger network, we believe the sum-of-the-parts story for Tesla is fully in stride with its newly released supercharger network OEM deals, energy business, AI-driven autonomous path, unmatched battery ecosystem, and increased production scale/ scope globally adding to the Tesla golden EV success story,” they wrote in a note to clients.
With demand holding up globally despite significant price cuts to Tesla’s models throughout the year, the EV-maker is in a prime position to further capitalize on the EV transformation taking place, they added.
They pointed out that the ramp-up of 4680 battery cell production is coming along, the Tesla Cybertruck is highly anticipated, production of its flagship fleet is expanding with a larger Giga factory footprint, and its full self-driving (FSD) capabilities are reaching new heights with AI training.
“While on the way towards capturing further market share, Musk & Co. have developed a diverse portfolio of products, including its supercharger network, energy business, FSD, batteries, and fleet, to accelerate the EV transformation with TSLA at the center pointing to continued success scaling globally,” they wrote.
The analysts have an ‘Outperform’ rating on the stock with a $350 price target.
Tesla shares were flat in pre-market trade at US$230 on Friday.
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