Tesla will open its charging network to other electric vehicles this year, and analysts say its software revenue will exceed that of selling cars


On Tuesday, Elon Musk, CEO of electric vehicle manufacturer Tesla, confirmed that Tesla plans to open its super charging station network to other electric vehicles later this year. At the same time, some analysts expect that Tesla and other software subscription revenue will eventually exceed the revenue from car sales.
It’s hard to measure the value of Tesla’s super charging station network in numbers, but there’s no doubt that it’s the most widely distributed electric vehicle fast charging network in the world.
Instead of relying on third-party charging networks like most other automakers, Tesla built its own charging network from scratch. Given Tesla’s lead in electric vehicles, this is all the more necessary.
Ten years after the first super charging station was built, Tesla now has more than 25000 super charging piles in more than 2700 charging stations around the world. But unlike third-party charging networks such as ionity, electronic America or ChargePoint, only Tesla’s cars can be charged through its super charging station network.
However, Tesla has repeatedly said that it is willing to share the super charging station network with other automakers, but it will depend on whether they can reach a cost sharing agreement.
GM has been rumored to have negotiated such an agreement with other automakers, but it seems to have failed to achieve any tangible results. Last year, musk said that other automakers are now using Tesla’s super charging station in a “low-key” way. Last month, media reported that Tesla actually confirmed to the Norwegian government its plan to open up its charging network to other car manufacturers for subsidies.
Some people think that Tesla’s move only applies to a few charging stations in Norway, but it is understood that Tesla is planning to expand the open range of charging network through adapters and updating its mobile applications. Musk has now personally confirmed plans for an open charging network, even with a timetable.
When it comes to Tesla’s proprietary connector, musk commented on Twitter: “we developed our own connector because there were no standards at that time, and Tesla was just a manufacturer of remote electric vehicles. It’s a very slim connector for low power and high power charging. That is to say, we will open our super charging station network to other electric vehicles later this year. ”
In North America, Tesla is using its own connectors, and it will have to provide adapters for other owners of electric cars so they can use the network. In Europe, Tesla is now using the CCS standard, which will make it easier for them to open up the super charging station network on the market.
Opening up the network of super charging stations may be in line with Tesla’s strategy, as the company has always been committed to generating revenue by providing paid services through software. The automaker started charging $10 a month for its “advanced connectivity” features and began selling software features as a package through its mobile app. But now, Tesla has taken that strategy to a whole new level, recently launching a $199 monthly subscription to the fully automated driving (FSD) suite.
Several analysts have been trying to assess the value of Tesla’s software business. Adam Jonas, an analyst at Morgan Stanley, a US investment bank, believes that Tesla may eventually make more money from software subscription services than from sales of hardware, such as cars.
“The $199 per month subscription upgrade fee is much higher than we expected,” Jonas said in a report to investors. The prepaid cost of the FSD kit is $10000, which is equivalent to about $56 per month for the 15 year (180 month) life of the vehicle. We assume that by 2026 or 2027, 60% of Tesla’s monthly active users (Maus) will have $100 a month subscription services, including autonomous driving, network connectivity, performance enhancement, charging, maintenance and other software services. ”
Tesla currently sells about 1.5 million cars in total, but Morgan Stanley expects that number to increase to 35 million to 40 million by the end of this century. By then, they think Tesla’s software business may be larger than its hardware business.
“We think the value of Tesla’s recurring software revenue may exceed its hardware revenue,” Mr Jonas said. Over time, we expect Tesla to launch a wide range of services to its users and disclose more financial information. In our view, this shift can help drive a further re rating of the company’s shares. ”
However, Morgan Stanley did not raise its target share price of $900 for Tesla after issuing the above forecast( Tencent technology reviser / Jinlu)