Tesla has the potential to earn up to $3 billion by 2030, thanks to new deals made with General Motors Co. and Ford Motor Co. to use the popular electric car company's charging network. Piper Sandler & Co. estimate the revenue earnings for Tesla, as it becomes the standard charging company for the major automakers in the United States.
General Motors announced its deal with Tesla in a Twitter Spaces audio chat alongside Tesla CEO Elon Musk. Meanwhile, Ford CEO Jim Farley made the same announcement in May. This news means the main competing standard, known as CCS, is likely to be dropped by other brands in the industry. Piper Sandler analyst Alex Potter commented, "Other brands will be forced to join this consortium, effectively establishing Tesla’s ‘North American Charging Standard’ as the preferred approach for EV charging — at least in the United States."
Despite earnings worth over $80 billion annually, the $3 billion earnings established through this deal could add to Tesla's momentum in the current EV race. General Motors and Ford have not seen any profits through their EV programs, and this news will only add to their pressure.
As part of the partnership with Tesla, General Motors' and Ford's infrastructure will increase. GM drivers currently have access to 13,000 DC fast chargers in North America, and Ford and GM owners will gain access to 12,000 of Tesla's Superchargers through this deal. Rival charging companies, such as EVgo Inc. and ChargePoint Holdings Inc. saw a decline following this news, and could be regarded as competing directly with Tesla's already established charging network.
The reliability of Tesla's charging network is the major incentive considered by other automakers. According to a recent survey by JD Power, Tesla's charging network is the most reliable among its competitors, with Gil Tal, director of the Electric Vehicle Research Center at the University of California, Davis, commenting, "Tesla has made a huge investment in its charging network. They have a good chance of making a business out of this. The main thing Ford and GM see out of this is not about the number of chargers but the dependability of them."