After many months of planning, the global EV magnate Tesla Inc. TSLA has announced that it will be offering its Supercharger network throughout the United States to non-Tesla EV owners. The novel move will provide a wide range of places for car owners to plug in.
The Supercharger network is the company’s extensive global network of fast-charging stations.. The network functions through a pay-per-use plan as well as a membership-based plan with fees at rates of per kWh. A separate membership is needed for each Tesla account, with each member being limited to a maximum of five Supercharger charge sessions per day.
The company had already carried out a number of overseas pilot programs to execute its plan in North America. In November last year, the company initiated a pilot program functioning at 10 Supercharger stations in the Netherlands to open its doors to non-Tesla owners who could charge using the Tesla app. In January 2022, it widened the program’s reach to Norway and France and has gradually been working to cover a large chunk of Europe under the ambit of the framework.
The announcement is thus one of the most awaited ones for EV owners in the country. However, introducing the program to North America had its challenges since Tesla uses its proprietary plug in the country instead of the usual CCS plug. But as Tesla’s CEO Elon Musk had stated, the company has made available an adapter to facilitate the standard CCS plug in the US.
Undoubtedly the global EV space is witnessing great strides and is posed to be a burgeoning domain in coming times. However, a lack of adequate charging networks seriously ails the EV world and hinders widespread adoption.
TSLA operates the largest charging network in the country and providing access to non-Tesla customers is likely to encourage more Americans to transition to battery power. It will commence production of the new Supercharger equipment in North America later this year.
The Biden administration in the country is all up for an intensive electrification drive and has announced several plans to bolster electrification. It has laid out plans to build a network of 500,000 public charger ports by 2030. In May, it kick-started a $3 billion investment plan to enhance battery production for EVs. Tesla’s Supercharger network in North America underscores the government’s vision and makes way for the company to leverage part of the $5 billion investment pool set up by the administration for EV infrastructure. It is also natural that the plan will generate additional revenues for the EV giant and enable it to add more to its already large market footprint.
But there seems to remain a hitch that the network could throw up some issues. There have been complaints from Tesla owners about the growing traffic at Supercharger stations that often keeps owners in long queues. Therefore the addition of more EVs is brewing fresh concerns in this aspect. Time will tell if Tesla can expedite the manufacture of chargers and look for a solution in its best possible capacity.
Nonetheless, the execution will be a noteworthy development in the country, sure to catapult the company’s success.
Shares of TSLA have surged 35.4% over the past year outperforming its industry’s 14.3% rise.
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Zacks Rank & Other Key Picks
TSLA carries a Zacks Rank #2 (Buy), currently.
Some other top-ranked players in the auto space are Harley-Davidson HOG, BorgWarner BWA and LCI Industries LCII, each carrying a Zacks Rank #2, currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Harley-Davidson has an expected earnings growth rate of 6.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 8.5% upward in the past 30 days.
Harley-Davidson’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. HOG pulled off a trailing four-quarter earnings surprise of 49.52%, on average. The stock has risen 6.2% in the past year.
BorgWarner has an expected earnings growth rate of 2.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 3.9% upward in the past 30 days.
BorgWarner’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. BWA pulled off a trailing four-quarter earnings surprise of 29.45%, on average. The stock has declined 9.3% over the past year.
LCI Industries has an expected earnings growth rate of 68.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 1.3% upward in the past 30 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. LCII pulled off a trailing four-quarter earnings surprise of 26.48%, on average. The stock has declined 2.8% over the past year.
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