Monday, 3 June 2013

Tesla Should Quit Making Cars And Just Sell Its Charging Stations

It's been a great few months for Tesla Motors [NSDQ:TSLA].
The company's flagship product attracted a near best-ever rating from Consumer Reports to add to its trophy cabinet.
But is Tesla's greatest potential in its Supercharger fast-charging network, rather than the Model S and its future vehicles?
The Wall Street Journal thinks it might be, and the argument is a strong one.
At the moment, only eight Superchargers dot the country, but that number will triple by the end of this month and rise to a hundred by the end of the year.
Superchargers for all
The business case for the Superchargers is currently one of added value for Model S sales.
Tesla owners aren't charged a penny to use the chargers, and that's likely to remain the case for the foreseeable future.
As a Model S buyer, it's nice to know you'll eventually be able to travel the country without spending a dime on fuel.
But Tesla's Supercharger technology is among the best fast-charging tech out there, and stations that can replenish 200 miles of battery capacity in 20 minutes have plenty of potential outside Tesla's realm.
What if, asks The Wall Street Journal, Tesla Motors could expand its network faster than anyone else? And what if other cars were eventually able to use that network?
The paper likens the move to the first network of filling stations across the U.S. These were controlled by--get this--Henry Ford, shortly after the Model T was launched.
It's great having people fill their Model S for free at those Superchargers, but even if Tesla's success continues, it will only ever be one maker of electric cars.
There are thousands of other electric vehicles out there with charging requirements, and allowing them access to the national Supercharger network could be a real money-spinner.

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