Tesla’s Charging Empire Could Supercharge Shares

Morgan Stanley has done the math on 's plan to open its to other automakers, a move that could transform the electric vehicle maker into the future's dominant “filling station.” The analysis takes into account Tesla's unique combination of renewable energy, large-scale storage capabilities, and its groundbreaking Supercharger business.

Analyst Adam Jonas and his team reportedly proposed a scenario where Tesla produces its own electricity at nearly zero marginal cost, stored on-site with stationary batteries. Using estimates including 8% of all U.S. miles driven by electric vehicles in 2030 and a 20% Supercharging market share, they then calculated potential profits.

In what Morgan Stanley dubbed the “reasonable case,” with 10% EV mile penetration, a 50% Tesla share of Supercharging, and a 30% net operating profit after tax margin, the Supercharging business could add $3 per share to Tesla's value.

The “plausible case” scenario anticipates a 20% EV mile penetration, 70% Tesla share of Supercharging, and a 50% net profit margin. This would lead to a potential net present value of $14 per share.

In a more ambitious “dominant case,” with 30% EV mile penetration, 80% Tesla share of Supercharging, and 70% net profit margin, the value could soar to $33 per share.

Finally, in the “monopoly case” that foresees 50% EV mile penetration, total Tesla control of Supercharging, and an 80% net profit margin, Tesla's Supercharger business could potentially add an astounding $78 per share.

Despite the optimistic projections, Tesla's stock dipped 3.20% to $248.41 in premarket trading on Thursday, following a 13-session winning streak that ended with a 0.74% dip on Wednesday. But with Morgan Stanley's analysis shedding light on the potential of Tesla's Supercharging business, the EV pioneer could well be powering up for an exciting future.

Discover more from EVXL

Subscribe to get the latest posts sent to your email.

Haye Kesteloo
Haye Kesteloo

Haye Kesteloo is the Editor in Chief and Founder of EVXL.co, where he covers all electric vehicle-related news, covering brands such as Tesla, Ford, GM, BMW, Nissan and others. He fulfills a similar role at the drone news site DroneXL.co. Haye can be reached at haye @ evxl.co or @hayekesteloo.

Articles: 459

Leave a Reply

en_USEnglish (United States)