According to Dan Ives, Tesla will get access

According to Dan Ives, Tesla will get access

Tesla (NASDAQ: TSLA) is set to access up to $20 billion in revenues from its recent Supercharger deals with Ford, General Motors, and various other automakers, Dan Ives of Wedbush said in a note this morning.

Tesla’s Supercharger Network is the most robust and expansive on the planet, and earlier this Summer, it gained massive attention when it struck deals with various OEMs to allow their EVs to access the charging infrastructure starting in Spring 2024.



While Aptera was the first to have access by adopting Tesla’s North American Charging Standard, or NACS, connector, Ford and General Motors followed suit in two announcements that shook the EV industry.

These partnerships then catalyzed various other automakers, including Rivian, Volvo, Polestar, and others, to make the same move. The adoption of NACS is set to bring Tesla major revenue increases through the rest of the decade, according to Wedbush’s Dan Ives, who is a top analyst covering the automaker and the sector as a whole.

Tesla’s NACS Contributing to Revenue

Ives wrote in a note this morning to investors:



“To dive deeper into this sum-of-the-parts valuation, we modeled & projected out Tesla’s supercharger network, taking into account access & revenues from other OEMs using stations across the United States. Ultimately, we estimate that Tesla’s supercharger business will be roughly 3%-6% of total revenues, translating to a $10 billion – $20 billion business by 2030.”

Ives wrote in the note that while the Supercharger Network opening to OEMs is a major part of the Tesla story, it is just that: one part.

Strong production figures, a thriving energy business, continuous improvement on the side of the development of Autopilot and Full Self-Driving, an “unmatched battery ecosystem,” and increased production and scale scope are all contributing to a strong financial sheet for Tesla.



“…we believe Tesla is in a prime position to further capitalize on the EV transformation taking place as part of the government’s plan to reduce carbon emissions to zero by 2050,” Ives wrote.

Cybertruck Deliveries ‘Highly Anticipated’

In addition to the strong revenue stream that will come with the opening of Superchargers to OEMs, other Tesla projects are also set to drive profitability, notably the Cybertruck.

“With the delivery numbers representing its flagship model fleet, the much-anticipated Cybertruck remains a hot commodity in the market with the company taking in 1.5 – 1.8 million reservations,” Ives writes.



Cybertruck Deliveries ‘Highly Anticipated’

In addition to the strong revenue stream that will come with the opening of Superchargers to OEMs, other Tesla projects are also set to drive profitability, notably the Cybertruck.

“With the delivery numbers representing its flagship model fleet, the much-anticipated Cybertruck remains a hot commodity in the market with the company taking in 1.5 – 1.8 million reservations,” Ives writes.



However, recent figures show over 1.9 million reservations held for the Cybertruck currently.

“While preparing for the launch in FY3Q23, the Cybertruck puts TSLA in a great position to capitalize on the growing need for electric pickups with the electric truck market growing at a 31% CAGR through 2032.”

Full Self-Driving and Its Contributions to Profits

Tesla’s Full Self-Driving suite is another major contributor to the automaker’s growing profitability and will drive the automaker’s total addressable market upward. Continuing to refine the suite’s performance through neural network training, the suite, along with Autopilot, has already contributed over 150 million miles of data.

There are more improvements on the way.

“Last week, the company announced its V12 update, an FSD package with end-to-end AI for improved driving smoothness through turns while enhancing both decision-making and detection in TSLA’s journey with the aim of achieving full autonomy this year,” Ives writes.

Ives holds a $350 price target and an “Outperform” rating on Tesla stock.

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