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What’s the sign of a truly successful business? Well, when it comes to electric vehicles (EVs), that would be building an expansive and efficient charging infrastructure. And that’s exactly where Tesla has been making huge strides!
According to recent reports, the company is leading the race
in installing EV chargers nationwide - as well as securing million dollars’
worth of federal grants to ensure success in this endeavor.
But how does all this pan out for Tesla? Are they on their way towards dominating the US EV charging space? To answer these pressing questions, let’s dig right into this topic and discover everything we need to know about Tesla's new trajectory!
The Tesla Supercharger Network
Tesla Supercharger Network has revolutionized electric
vehicle charging and is now considered a major competitive advantage for the EV
giant.
Easily accessible, reliable and widely spread throughout
North America, Europe, Australia and Asia Pacific regions – Tesla's
Supercharger Network extends more than just convenience but also confidence in
long-distance trips.
While the Supercharger Network originally allowed Tesla
vehicles to connect and charge, Tesla opened up the Network in 2020 with an
announcement of allowing any electric vehicle (EV) equipped with a CCS2 port to
access Supercharging stations around the world.
In addition to opening up their Supercharger Network to all EVs, Tesla also released its North American Charging Standard (NACS). NACS enables vehicles to use the same charger connector as Tesla’s vehicles regardless of make or model.
Tesla is Pacing Out its Rivals in Supercharger Installations
The federal infrastructure law passed in 2021 has opened up
a new level of opportunity for the expansion of electric vehicle charging
networks. As such, $5 billion has been approved for the development and
construction of these stations in United States over the course of five years.
A report by The Wall Street Journal reveals that America
currently holds a total number of 33,400 fast chargers and Tesla’s Supercharger
network contributes to an impressive three out every five EV chargers
nationwide – not too shabby!
This success is due to Tesla's great head-start within this
field since its first charger was installed all the way back in 2012 while many
other rival automakers are jumping onto the e-mobility bandwagon now at
relatively slower paces still.
Moreover, Tesla has already secured a massive number of bids
to build out the charging sites elected by US states using federal dollars,
more than any other company. A massive $77 million have been granted and out of
that enormous amount, Tesla has been awarded $8.5 million in funding alone –
providing further evidence of its clear victory against rivals in this sector.
This can be attributed to Tesla’s dedication in investing out of their own pocket for the expansion of charger networks across the nation, enabling them to build experience and expertise necessary to most efficiently develop faster charging stations more cost effectively compared those that are lagging behind (as much as 20-70% lower than rivals).
Learn More: Navigating Streets with Tesla FSD's Autosteer: The New Era of Full Self-Driving!
Tesla Supercharging Stations are 50% Cost-Effective
It goes without saying that Tesla’s experience in the
electric vehicle (EV) sector is visible in their plans and bids as they aim to
further expand its vast Supercharging network. In fact, recent reports have
emerged showing that they continue to aggressively outcompete other companies
when it comes to bidding for charging site contracts.
Renault, Volkswagen Group, BMW and other automakers recently
placed bids to build 120 DC fast-charging sites across the US. Tesla’s bid for
each site came in at an average of $392,000 compared with the competition’s
average of $795,000 per site.
The ZapMap portal – which is known for collecting publicly
accessible charging data – has confirmed that Tesla plans to vastly expand its
Supercharging network by installing 8-12 chargers per location while their
competitors seem content on sticking with the minimum 4 required by Federal
government legislation.
Given these implications, it appears that Tesla will remain a formidable challenger as they continue to pioneer many aspects of EV ownership while simultaneously revolutionizing battery technology.
Supercharger Network Not a Key Money-Maker for Tesla
It’s no secret that Tesla’s Supercharger Network is one of
the company’s most important assets. However, while it undoubtedly provides a
great service to Tesla owners across the world, its primary intention is not
for profitability.
If anything, analysts have predicted that revenue from the
network could reach $885 million next year with a potential of up to $10
billion within the coming decade if certain strategic objectives are met as CEO
Elon Musk has outlined.
If these estimates prove correct then — when combined with possible additional revenue streams including car sales and financial services— total figures for Tesla could exceed an incredible $700 billion!
Learn More: Tesla Sweetens the Deal: Price Cuts, Free Paint, and No More Standard Range for Model S & X!
The Bottom Line
It's clear that Tesla is currently dominating the electric
vehicle (EV) charging space in the US, and its government bids are up to 50%
less than those of its competitors.
Combining this frugality with their advanced supercharging
technology, if all bets are placed rightly by Elon Musk, it is very likely that
the Tesla valuation could easily 10x within a few years.
All things considered, these impressive efforts by Tesla
point towards more accessible EV chargers as well as further consolidation of
their leading market position in the scene.