Tesla Could Make $10 Billion On Charging Stations

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Several car companies acknowledged that they could not create EV charging infrastructures. In a form of surrender, they agreed to use the one Tesla had built. Tesla will get a windfall of revenue because of these decisions. One expert organization says the figure could be $10 billion a year. Tesla had a total revenue of about $25 billion in the fourth quarter of 2023 and warned its business would slow this year as EV adoption growth rates tail off.

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Sam Fiorani, vice president for global forecasting at AutoForecast Solutions, wrote CNBC, “Tesla could still see $6 billion to $12 billion a year” by 2030 from its expanded charging business.” Teslas may become the de facto charging network in the US based on the costs to build one independently or buy one of the small EV charging station start-ups.

Tesla could use the revenue, mainly because most would be profit. The cost to build and maintain the charging stations is already primarily in place.

EV Growth Slows

Tesla faces a market in which EV adoption is slowing, particularly in the US and Europe. China is the largest EV market, but it is also the most competitive with local manufacturers led by BYD, the biggest EV company in the world based on unit sales.

In the final quarter of 2023, Tesla had revenue of $25.2 billion and Adjusted EBITDA of $4 billion, a drop of 27% from the same quarter the year before. An additional $10 billion in revenue per year, most of which goes to the bottom line, would substantially change Telsa’s EPS figures. That is a big deal for a company with its shares down 18% this year.