As more electric vehicles enter the market, building out a robust charging infrastructure is critical for continued adoption and growth. Tesla recognized this early and has focused on developing its Supercharger network. With over 25,000 Superchargers globally, Tesla has set the standard and laid the foundation for a seamless EV charging experience. Major auto manufacturers are now playing catch-up. Investing in charging stations represents a big opportunity as the world transitions towards electric mobility.
Tesla’s first mover advantage with its vast Supercharger network
Tesla began rolling out its Supercharger network in 2012 to eliminate range anxiety and enable long distance EV travel. This proprietary fast charging network now spans over 25,000 Superchargers globally, far outpacing competitors. The convenience, reliability and access Tesla owners enjoy fuels further EV adoption. As more automakers enter the EV space, public charging infrastructure is severely lacking. Building out networks on the scale of Tesla’s will be challenging but critical.
Massive potential market as EVs gain mainstream acceptance
BloombergNEF predicts over 500 EV models will be available by 2022. Major automakers like VW and GM have announced ambitious electrification plans. Government policies are also accelerating the transition. Charging stations will soon evolve into a hundreds of billions dollar market. However, the business model remains unproven and substantial investments are needed in the near-term with unclear return timelines.
Investment opportunities in charging network buildout
From hardware manufacturers to charging operators, networking software providers and real estate companies, the EV charging value chain offers many investment avenues. Companies like ChargePoint and EVgo are expanding rapidly in preparation for accelerated growth. Though still early stage, investing in the leaders emerging in this space as the market matures could prove highly lucrative.
Tesla’s commanding lead with its vast fast charging infrastructure reinforces its position as the EV leader. As more automakers launch competing EV models, public charging availability could become a bottleneck that constrains adoption. Investing in the companies tackling this infrastructure buildout represents a long-term bet on the future of sustainable transport.