electrek:

A Wedbush analyst is estimating that Tesla’s Supercharger network will become a $10 to $20 billion a year business by the end of the decade.

When Tesla first launched the Supercharger network in 2012, it did it because no one else was deploying DC fast-charging stations for long-distance travel.

It was doing it as a service to its owners.

At the time, Tesla CEO Elon Musk even said that the Supercharger network would “never be a profit center” for the automaker – meaning that it didn’t plan to make money from it. It was first intended to help them sell electric cars.

But to be fair, not many people could have predicted what it would have become, and it’s the only global DC fast-charging network and by far the most extensive charging network in North America.

With Tesla now having a fleet of millions of vehicles using the network and opening it up to EVs from other automakers, financial analysts are starting to see the Supercharger network has a massive business that is going to partly replace gas stations, and they want to value it.

Wedbush Securities analyst Dan Ives, who has been covering Tesla for a long time, came out with a new note to clients today in which he stated that he believes the Supercharger network will represent 3% to 6% of Tesla’s total revenue or $10 to $20 billion in revenue by 2030.

Ives wrote:

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.

The analyst added:

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.

Ives is one of the most highly ranked analysts on the financial analyst ranking system TipRank – #121 out of 8,527 Wall Street analysts.

Electrek’s Take

I always like to point out that DC fast-charging doesn’t really replace the gas station business because most of the EV charging is going to be level 2 charging at home and businesses.

But DC fast-charging is an important piece of the puzzle as it enables long-distance driving.

It is not going to be as big as gas stations, but it is going to be big business, and Tesla is going to be a huge part of it. Dan’s analysis sounds about right to me.

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MuskWire TLDR:

A Wedbush analyst predicts that Tesla’s Supercharger network will generate $10 to $20 billion in annual revenue by the end of the decade. The Supercharger network was initially launched in 2012 as a service to Tesla owners, with the intention of supporting the sale of electric cars rather than generating profits. However, with the network now being used by millions of Tesla vehicles and open to other EVs, financial analysts see it as a significant business that could partially replace gas stations. Wedbush Securities analyst Dan Ives estimates that the Supercharger network will represent 3% to 6% of Tesla’s total revenue by 2030. Ives believes that Tesla’s recent introduction of the Magic Dock, an adapter allowing non-Tesla EVs to charge on the NACS standard, provides further opportunities for expansion. While DC fast-charging is not expected to surpass the size of gas stations, it is seen as a crucial component for enabling long-distance driving.