As the holiday season approaches, Tesla Inc. is gearing up for an expected increase in the use of its supercharger network. According to Max de Zegher, Director of Charging for North America, Europe Middle East & Africa as well as the Asia Pacific, the company is predicting 20+ GWh/day use across North American, Asia Pacific and European Superchargers over the next two weekends.
Preparing for the Surge
To ensure a smooth experience for its customers, Tesla is taking several steps to prepare for the surge in supercharger use. These include:
- Scrubbing the network to achieve close to 100% uptime
- Deploying attendants and Tesla Megapack-powered chargers at its busiest sites
- Continuously opening new superchargers through the holidays
Supercharger Network
As of the end of the third quarter, Tesla had 6,706 supercharger stations around the globe, with 62,421 connectors. The company’s supercharger network is a key component of its services and other revenue segment, which includes revenue from repairs and other services.
Services and Other Revenue
In the quarter ended September, Tesla reported services and other revenue of $2,790 million, representing about 11% of the company’s total revenue. However, the company recently reduced supercharging prices in the US, which may minimize the revenue otherwise possible during the busy holiday season.
Accelerating EV Adoption
According to de Zegher, the reduction in supercharging prices is aimed at accelerating EV adoption while being financially sustainable to invest in expanding the network. Earlier this year, Tesla CEO Elon Musk announced that the company would invest $500 million into expanding the supercharging network this year.
Analyst Ratings
Tesla has a consensus “buy” rating based on the ratings of 33 analysts. Wedbush securities analyst Dan Ives recently hiked Tesla’s price target from $400 to $515.