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Tesla's Supercharger Business to Power Up its Long-Term Story

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Electric vehicle (EV) and tech giant Tesla (TSLA - Free Report) has been revolutionizing the charging space. Its Supercharger network has become a critical component of the company’s ecosystem. Last year, Tesla added over 10,000 new Supercharger stalls, expanding into three new countries and growing the global network by 19% year over year to more than 65,000 stalls. In total, the network delivered over 5.2 terawatt-hours of energy — enough to offset 5.5 billion kilograms of CO2 and replace 2.4 billion liters of gasoline.

The rollout of the North American Charging Standard (NACS) has bolstered Tesla’s position, allowing various automakers to access its charging network.The sweeping shift toward Tesla's NACS port is a pivotal moment in the EV charging landscape, promising a more streamlined charging experience for EV drivers. The company also offers home charging solutions like the Wall Connector, which integrates seamlessly with its vehicles, providing overnight charging convenience.

Tesla owns the world’s largest EV charging network, with its U.S. stations outnumbering all rivals combined. This fast-growing, profitable business gives Tesla a major edge as EV adoption expands over the years. Industry experts project that the charging division could bring in $6-$12 billion in annual revenues by 2030, especially as Tesla has opened its Superchargers to non-Tesla drivers, paving the way for a strong, recurring revenue stream in the years ahead.

The Race to Dominate EV Charging Infrastructure

Last month, Chinese automaker BYD Co Ltd (BYDDY - Free Report) made a bold claim — charging an EV could soon take as little time as refueling a gasoline car. With its new "Super e-Platform," BYD claims its latest batteries can achieve 400 kilometers (about 249 miles) of range with just five minutes of charging.BYD’s Han L sedan and the Tang L SUV models will feature the Super e-Platform. 

Volkswagen Group (VWAGY - Free Report) is also rapidly expanding its electric vehicle charging infrastructure. Through subsidiaries like Electrify America and partnerships such as Ionity in Europe, Volkswagen is fast solidifying its presence in the space. Earlier this year, Volkswagen joined forces with XPeng to build super-fast charging networks for zero-emission vehicles in China.

TSLA’s Price Performance, Valuation and Estimates

Shares of Tesla have lost around 41% year to date compared with the industry’s decline of 37.5%.

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From a valuation standpoint, TSLA trades at a forward price-to-sales ratio of 7, above the industry. It carries a Value Score of F.

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The Zacks Consensus Estimate for TSLA’s earnings has been southbound over the past 30 days.

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Tesla stock currently carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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