News

Electric vehicle (EV) and tech giant Tesla TSLA has been revolutionizing the charging space. Its Supercharger network has become a critical component of the company’s ecosystem. Last year, Tesla added over 10,000 new Supercharger stalls, expanding into three new countries and growing the global network by 19% year over year to more than 65,000 stalls. In total, the network delivered over 5.2 terawatt-hours of energy — enough to offset 5.5 billion kilograms of CO2 and replace 2.4 billion liters of gasoline.

The rollout of the North American Charging Standard (NACS) has bolstered Tesla’s position, allowing various automakers to access its charging network.The sweeping shift toward Tesla's NACS port is a pivotal moment in the EV charging landscape, promising a more streamlined charging experience for EV drivers. The company also offers home charging solutions like the Wall Connector, which integrates seamlessly with its vehicles, providing overnight charging convenience.

Tesla owns the world’s largest EV charging network, with its U.S. stations outnumbering all rivals combined. This fast-growing, profitable business gives Tesla a major edge as EV adoption expands over the years. Industry experts project that the charging division could bring in $6-$12 billion in annual revenues by 2030, especially as Tesla has opened its Superchargers to non-Tesla drivers, paving the way for a strong, recurring revenue stream in the years ahead.

The Race to Dominate EV Charging Infrastructure

Last month, Chinese automaker BYD Co Ltd BYDDY made a bold claim — charging an EV could soon take as little time as refueling a gasoline car. With its new "Super e-Platform," BYD claims its latest batteries can achieve 400 kilometers (about 249 miles) of range with just five minutes of charging.BYD’s Han L sedan and the Tang L SUV models will feature the Super e-Platform.

Volkswagen Group VWAGY is also rapidly expanding its electric vehicle charging infrastructure. Through subsidiaries like Electrify America and partnerships such as Ionity in Europe, Volkswagen is fast solidifying its presence in the space. Earlier this year, Volkswagen joined forces with XPeng to build super-fast charging networks for zero-emission vehicles in China.

TSLA’s Price Performance, Valuation and Estimates

Shares of Tesla have lost around 41% year to date compared with the industry’s decline of 37.5%.

From a valuation standpoint, TSLA trades at a forward price-to-sales ratio of 7, above the industry. It carries a Value Score of F.

The Zacks Consensus Estimate for TSLA’s earnings has been southbound over the past 30 days.

Tesla stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report

Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.