Tesla To Open Supercharger Network As China EV Stocks Charge Ahead

Tesla (TSLA) CEO Elon Musk has confirmed that the EV maker will open its Supercharger network to other automakers by the end of the year. Tesla stock was little changed while China EV makers Li Auto (LI), Nio (NIO), Xpeng Motors (XPEV) and BYD Co. (BYDDF) charged ahead.


In a tweet late Tuesday, Musk said: “We created our own connector, as there was no standard back then and Tesla was the only maker of long-range electric cars. It’s one fairly slim connector for both low & high power charging. That said, we’re making our Supercharger network open to other EVs later this year.”

It’s unclear if Tesla’s network of more than 25,000 Superchargers at 2,700 stations would be open to others everywhere or just in specific regions or countries.

While Tesla has often said it was open to sharing its Supercharger network with other automakers, it has never officially offered details of those plans. Last year, Musk implied that other automakers had already been using the network in a “low-key” way.

Tesla Supercharger Talks In Europe

Tesla has reportedly been in negotiations with European countries to open up its charging network to other automakers to unlock subsidies in those countries. Europe, which has a booming EV market, has far more third-party charging stations than the U.S.

On June 24, Electrek reported that Tesla had confirmed to Norwegian officials that it plans to open its supercharger network to other automakers by September 2022. Earlier in June, it was reported that Tesla was in similar talks with German officials. 

Biden Administration Backs EV Charging Subsidies

The Biden administration has proposed to offer incentives for the installation of EV charging stations. 

Ten years ago, Tesla developed its own charging network. However, unlike third-party charging networks like ChargePoint (CHPT), Blink Charging (BLNK) and Evgo (EVGO), only Teslas can charge at Tesla stations.

Tesla supporters have long argued that the Supercharger network is a key advantage over other EVs, with still-limited charging options in the U.S.

Part of the discussions to open the network to other automakers involve cost-sharing. In the U.S., Tesla would also have to offer an adapter to make its connector compatible with other EVs. This is not an issue in Europe, where Tesla uses the CCS standard.

But opening up its Supercharger network could bring in more regulatory credits.

Tesla derives a big chunk of its revenue from selling regulatory credits to other automakers who need them to meet emissions requirements. In the first quarter of 2021, Tesla reported a 46% jump to $518 million in revenue from sales of regulatory credits. But those are expected to wane as rival automakers beef up their EV production to meet emission standards on their own.

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Tesla Stock

Shares dipped 1% to 654 on the stock market today. TSLA stock has lost more than a quarter of its value from its all-time high of 900.40 in January. The stock recently found support at the 40-week line on its weekly chart, and now it’s spending some time above its 10-week moving average, according to MarketSmith chart analysis.

Meanwhile, the Leaderboard stock’s relative strength line is going sideways, not that far above 2021 lows. Its RS Rating is 79 out of a possible 99. Its EPS Rating is 74.

Tesla reports Q2 earnings late Monday. Analysts expect Tesla earnings per share to surge 105% to 90 cents and sales to jump 89% to $11.39 billion.

Among EV charging stocks, ChargePoint rose 3.5%, EVGO dropped 4.1% and Blink Charging popped 5.3%.

China EV Stocks Jump

While Tesla stock was in neutral Wednesday, China EV makers revved higher.

Nio stock jumped 8%, rebounding from its 200-day line. Xpeng stock popped 6% after finding 200-day support earlier this week.

Li Auto stock surged 8.4%. BYD stock leapt 6.3%.

All four China EV makers are working on handle-like formations in very deep bases, with several breaking a downtrend in these “handles.” But only Li Auto and BYD stock are forming handles in the upper half of their bases, and all four are working in very deep bases.

Ideally, these handles would turn into short bases within the larger consolidations.

Li Auto was added to SwingTrader on Wednesday.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.


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