Tesla’s CEO Elon Musk seems unfazed by the presence of automotive giants Ford and GM in the electric vehicle (EV) market. In fact, he may even view them as potential customers rather than competitors. Recently, both Ford and GM made headlines by announcing that their EV owners would have access to Tesla’s Supercharger stations, starting early next year. While this move could lure some customers away from Tesla and towards Ford or GM, analysts believe that there is a bigger strategy at play.
Dan Ives, an analyst from Wedbush Securities, sees this move as just the tip of the iceberg for Tesla. He draws a parallel to Amazon Web Services (AWS), which started as an internal cloud computing platform for Amazon but eventually became a major success by selling access to its infrastructure. Ives believes that Tesla, having developed its own infrastructure and technology for its vehicles, could follow a similar path and experience an “AWS moment.”
According to Ives, this partnership with Ford and GM on Supercharger access is just the beginning. He suggests that Tesla could potentially offer access to its battery technology, which is currently considered a prized possession in the EV industry. By leveraging their existing infrastructure and waiting for other automakers to reach out, Tesla could generate significant revenue through these partnerships.
Interestingly, Ives believes that Tesla’s success also hinges on the success of its competitors. He suggests that for the broader adoption of EVs in the United States, Tesla needs Ford and GM to thrive. This perspective aligns with Musk’s recent tweet expressing Tesla’s aspiration to assist other car companies and license its Autopilot/FSD technology.
Ives further predicts that Tesla could generate billions of dollars from charging partnerships with Ford and GM in the coming years. Analysts at Piper Sandler estimate that by 2030, Tesla could add over $3 billion in charging revenue from non-Tesla owners, which could grow to $5.4 billion by 2032. This revenue, along with federal incentives, will also aid Tesla in expanding its charging network.
The market has responded positively to Tesla’s recent moves, with the company’s shares skyrocketing by 126% year to date, propelling Musk back to the position of the world’s richest person. Ives believes that investors are starting to recognize the value of Tesla’s various offerings, from batteries to Superchargers to energy storage. As more automakers embrace Tesla’s technology and infrastructure, the sum-of-the-parts thesis is beginning to unfold.
In conclusion, Tesla’s decision to collaborate with Ford and GM on Supercharger access is just the beginning of a larger strategy. By monetizing its infrastructure and technology, Tesla aims to create new revenue streams and foster the broader adoption of EVs. As the electric vehicle market continues to evolve, Tesla’s position as a leader and innovator remains strong, ensuring a promising future for the company and its partners.
