- Tesla has quietly launched business-to-business sales of its Superchargers.
- Previously, Tesla only allowed businesses to become a host site for its charging network.
- This new venture enables businesses to buy Tesla Superchargers directly and rake in the earnings while Tesla drastically lowers the up-front to grow its network.
Tesla's Supercharging network has always been one of its greatest assets. The electrified roadside obelisks have popped up all over America since Tesla began building out its network over a decade ago. And now, as the automaker's car sales falter around the world, Tesla is doubling down on charging.
On Friday, Tesla launched a new program that allows businesses to purchase their own white-labeled Superchargers, complete with a custom business logo on each cabinet. Customers pay for the charging equipment and hire a team to install them, then Tesla will provide the hardware, software and ongoing support to turn vacant parking lot space into a fast-charging destination for EVs of all makes and models.
Tesla struck a deal in 2023 to sell $100 million worth of Superchargers to BP Pulse, another charging network, but this marks the first time that Tesla's hardware is widely available to outsiders. And it may be just the right time for Tesla to expand its Supercharger business.
The carmaker's global vehicle deliveries shrank last year for the first time in over a decade, and it's on track for another year without sales growth. Revenue and profits have both plunged this year as a result. A long-teased cheaper model that investors thought would reinvigorate sales will be a version of the existing Model Y. Meanwhile, as Tesla's "Master Plan IV" put on display better than ever, Elon Musk is bored of the car business.
Amid a new focus on humanoid robots and AI, Superchargers are maybe the one part of Tesla's core car-centric business that it seems to be investing heavily in. Over roughly the last year, Tesla has deployed nearly 1,000 Supercharger stations and over 10,000 new plugs.
Tesla doesn't break out its Supercharging earnings specifically, but said that its "services" gross profit increased 64% quarter-over-quarter in Q2 due to increased charging volume. In part, that may be because Tesla has been opening up its network to EVs from other car companies. And it was one bright spot in an otherwise disappointing earnings report.
By opening up hardware sales to other businesses, Tesla is doubling down on one of its only growth engines. It not exactly a get-rich-quick scheme for small businesses, though.
EV charger consulting firm Socal EV says that it can take anywhere between 12 and 64 weeks to go from site planning to the first car plugging in. This timeline is affected by local permitting, utility providers, construction and testing.
Then there's the funding aspect. Tesla doesn't reveal how much it will charge customers for its chargers, but Tesla's director of charging for North America said on X this year that it costs Tesla $40,000-$45,000 per stall to build Superchargers. Tesla says that the minimum buy-in for any business is four charging cabinets per site, meaning that it's not unreasonable to expect a cost of roughly $200,000 for a small project.
Let's say one of these charges bills a customer $0.45 per kilowatt-hour. If Tesla takes $0.10 and the local utility provider takes the national average of $0.175 per kilowatt-hour, that leaves the business with $0.175 per kWh dispensed. The U.S. Department of Energy says that the average amount of energy delivered during a paid charging DC fast charging sessions (excluding Tesla's network) is 22 kWh. This means that, on average, a business can expect to earn around $3.85 per session from charging alone. To break-even on a $200,000 installation, it would take around 51,950 charging sessions.
That's not the only way that businesses earn from chargers. A 2024 study from MIT shows that stores within close proximity to EV fast charging stations showed an uptick in annual sales largely attributed to the dwell time drivers spend at public fast chargers.
I think any EV driver can relate. Sure, you can sit in your car and watch Netflix while you charge. But if you're close to a gas station or Starbucks, you can't tell me that the temptation of a small snack hasn't fallen over you. Between white Monster energy drinks and Wawa soft pretzels, I've probably spent more than I care to admit while waiting at a Supercharger.
It may be a savvy move for Tesla. The automaker gets to retain control of its charging network, it doesn't need to front all of the cash for new charging installations (while still earning a share of the revenue) and EV drivers will find even more locations where they can charge on the go.
