Tesla Will Get Access to up to $20B in Revenue Thanks to NACS Deals, Says Wedbush

Tesla will gain access to up to $20 billion in revenue through recent NACS deals with automakers, Wedbush said. The firm believes this, as well as the energy business, Al-driven autonomous path, unmatched battery ecosystem, and increased production scale as factors “adding to the Tesla golden EV success story.”

Tesla’s golden EV success story

Wedbush analyst Dan Ives has published a new note on Tesla (TSLA). He credits the company’s progress across multiple fronts as “adding to the Tesla golden EV success story.” In particular, he mentions the company’s energy business, the development of autonomous driving, a battery ecosystem that has no equal, the growth of production, and the construction of new factories around the world.

Tesla NACS alliance

In addition to these factors, Ives highlights Tesla’s charging infrastructure. In recent months, the company has entered into agreements with a number of automakers who have agreed to adopt Tesla’s charging standard, the North American Charging Standard (NACS). Most of them will have access to the Supercharger network in North America as early as 2024, and will start producing their electric vehicles with the new port in 2025.

“Names like GM, Ford, Rivian, Mercedes-Benz, Nissan and Volvo/Polestar have all signed agreements with the EV stalwart, and we expect more names such as Hyundai, Honda/Acura, and other large OEMs with advantageous EV goals in the future to follow suit down this path as Tesla battles it out with the US Government for supercharger dominance,” wrote Ives.

Tesla will receive up to $20 billion in revenue from NACS deals

According to the analyst, wide adoption of NACS should bring Tesla significant revenue growth before the end of the decade. The firm modeled the Supercharger network by taking into account its availability and revenue from the automakers that entered into agreements. Wedbush estimates that by 2030, revenues should be $10-20 billion.

“To dive deeper into this sum-of-the-parts valuation, we modeled & projected out Tesla’s supercharger network, taking into account access & revenues from other OEMs using stations across the United States. Ultimately, we estimate that Tesla’s supercharger business will be Roughly 3%-6% of total revenues, translating to a $10 billion – $20 billion business by 2030,” Ives wrote.

Ives has a price target of $350 and an “outperform” rating on Tesla shares.