Tesla Expects Surge in Supercharger Use During Holidays

Tesla Inc TSLA is preparing for a notable increase in its supercharger network’s usage in the upcoming weekends, according to executive Max de Zegher.

Projected Demand Over the Holidays

According to de Zegher, “The next 2 weekends are busy.” In a recent social media post, the Director of Charging for North America, Europe, the Middle East & Africa, as well as Asia Pacific, highlighted that Tesla anticipates a usage rate of over 20 GWh per day across its superchargers in these regions.

Enhancing Supercharger Availability

To meet this anticipated demand, Tesla is focused on achieving nearly 100% uptime for its supercharger stations. The company is also deploying attendants and introducing Tesla Megapack-powered chargers at its busiest locations. New supercharger installations will continue throughout the holiday season, de Zegher added.

Current Supercharger Infrastructure

As of the end of the third quarter, Tesla operates 6,706 supercharger stations worldwide, equipped with 62,421 connectors.

Revenue Insights from Supercharging

Determining the revenue generated from supercharging can be complex, as it is included in Tesla’s segment labeled “services and other revenue.” This category also encompasses revenues from repairs and various services.

In the quarter that concluded in September, Tesla reported services and other revenue of $2,790 million. This represents a significant rise compared to $2,166 million reported in the same quarter a year earlier, making up around 11% of the company’s total revenue for that period.

In a strategic move, Tesla reduced supercharging costs in the U.S. earlier this month. While this might limit potential revenue during the busy season, de Zegher explained that the reduction aims to promote electric vehicle adoption while supporting network expansion efforts.

Future Investment in Supercharging Technology

This year, Tesla CEO Elon Musk announced plans to invest $500 million to further enhance the supercharging network.

Analyst Perspectives

Currently, Tesla holds a consensus “buy” rating according to 33 analysts. Wedbush securities analyst Dan Ives recently raised Tesla’s price target from $400 to an impressive $515.

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Further Reading

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