Yesterday BP made this announcement. Could be lucrative revenue stream for Tesla. But also, a harbinger of giant oil company offering Tesla a significant amount for their Supercharger "division"?
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Could Tesla sell their Supercharger "division"?
- Thread starter NV Ray
- Start date
I think reading "beyond" the lines you could see Big Oil executives debating the future of EV charging vs gas sells and buying The Tesla Supercharger Network would put them in a hard 100 meter race at the 85 meter point right out the gate.
RTPEV
Active Member
I don't see Tesla selling it off, but I could possibly see them spinning it off into a subsidiary at some point down the road, but right now there is still way too much synergy between the charging network and their vehicles to see them doing anything like that in the near term.
strider
Active Member
I have long said that the SC network should move under a Tesla Energy subsidiary along w/ solar and PW. Keep the car people focused on cars and the stationary energy people focused on that.
I think the answer is No. After we complete the worldwide transition to EVs, I wouldn't be surprised there is more revenue in the charging side than in selling EVs.
On the other hand, I do expect legacy gas stations to add Superchargers to their locations. They make most of their $ from convenience store sales. EVs charging will take advantage of using their restrooms, and grab something to drink and a snack before they are back on their way.
This would also induce those owners who are unable to charge at their residences a place to charge locally, and also grab a slurpy.
Station owners would also gain the profitable charging business.
This would also induce those owners who are unable to charge at their residences a place to charge locally, and also grab a slurpy.
Station owners would also gain the profitable charging business.
RTPEV
Active Member
I just don't know how profitable the charging business will be (and this gets to @BobHinden 's point as well). Selling gas is extremely low margin (for the gas station owner anyway), but that can be made up for with volume. By its nature, charging is not high volume and the economics of demand charges and to a great extent competing with the cost of charging at home work against commercial charging providers. I don't think the charging itself is going to be lucrative, and may end up being a loss leader even. The benefit is going to come from pairing the charging with other entities that do make money, like convenience stores, coffee shops, restaurants, and grocery stores. The charging stations are merely an amenity meant to draw in customers, not to actually earn money.
Tesla has made a business of vertical integration. They make the cars, parts, batteries, software, and charging. I don't think they'll interrupt the value chain to sell.
Exactly.
Vertical integration is, arguable, Tesla's most core value (well, maybe behind move fast and empower people etc).
Should they also spin off the energy division, the autopilot division, optimus, and battery manufacturing? Part of the reason why the Supercharger network was successful in my opinion is because it wasn't supposed to be a standalone business. It exists to sell cars, not to make a profit (hopefully it's slightly profitable, overall).
The current data on margins, costs, etc would point to the opposite conclusion but things will change as things grow and evolve.
ucmndd
Well-Known Member
Just like all the legacy automakers make their money selling gas now?
Electricity is a commodity, just like gasoline. Even gas stations make practically zero money selling gas. No clue why we’d expect electricity to be different.
Legacy automakers aren't enabling the existence of their product via reliable charging networks. It's a key differentiating factoring for Tesla. At least it has been - that's potentially changing with Tesla opening up the SC network though.
For Tesla to even consider spinning off the Supercharger network, third party charging would need to be as good or better. In North America we aren't anywhere near that point. Maybe we will be eventually. It's not a commodity yet where all suppliers are equal.
Another factor is that charging is much more deeply integrated with EVs that gas is with legacy ICE cars. Navigation, communication with the car when actually charging, charge ports, connectors, etc. There's benefits to an EV company building the charging that don't exist for gas stations.
What's more like IMO is we see more partnerships like the BP partnership where Tesla supplies the hardware and tech. I agree with your point that selling electricity is low margin. Longer term that'll incentive locating chargers along side other businesses. Starbucks is a perfect example, and they've started installing chargers.
For Tesla to even consider spinning off the Supercharger network, third party charging would need to be as good or better. In North America we aren't anywhere near that point. Maybe we will be eventually. It's not a commodity yet where all suppliers are equal.
Another factor is that charging is much more deeply integrated with EVs that gas is with legacy ICE cars. Navigation, communication with the car when actually charging, charge ports, connectors, etc. There's benefits to an EV company building the charging that don't exist for gas stations.
What's more like IMO is we see more partnerships like the BP partnership where Tesla supplies the hardware and tech. I agree with your point that selling electricity is low margin. Longer term that'll incentive locating chargers along side other businesses. Starbucks is a perfect example, and they've started installing chargers.
RTPEV
Active Member
Let's not forget the fact the hardware that goes into the charging station is essentially the same that goes into the on-board charger in the car. There are just more of them in the Supercharger. So while a third-party DC fastcharger company has to design & qualify AC/DC and DC/DC converters from scratch and then build them in relatively low volume, Tesla can (and has) just take those components out of their vehicles (which are manufactured in very high volumes) and put them into their Superchargers. I think this advantage is usually overlooked, and is one of the key reasons Supercharger hardware is comparatively inexpensive and more reliable.
A split off (or even spun off) Tesla Energy company would either have to start back at square one with their own designs, or they'd have to be buying parts from Tesla Automotive, lowering the value proposition.
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