This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
“A rising tide lifts all boats,” said John F. Kennedy. Tesla investors seem to have embraced this line of thinking, as illustrated by the stock’s meteoric rise ever since the EV giant opened up its Supercharger network to its primary American competitors, General Motors (GM) and Ford.
Within the span of the past few days, both GM and Ford have signed up to access Tesla's charging network starting next year. Under the deal, GM and Ford EV users will be able to access the 12,000+ Tesla Superchargers located throughout North America via their companies’ bespoke charging apps. Also, both GM and Ford will equip their EVs with a NACS – North American Charging Standard – cable from 2025 onwards.
$TSLA going UP by open-sourcing its charging is MYSTIFYING. In exchange for boosting competitors' sales:
If 5M non-Teslas/year spend $100 @ Superchargers = $500M @ 5% net margin = $25M = <.01/share profit.
Meanwhile $GM & $F will build their OWN networks that pay Tesla ZERO.
— Stanphyl Capital (@StanphylCap) June 9, 2023
Of course, to Tesla’s detractors, this strategy is a misstep. However, the deal does offer some financial incentives to the EV giant.
.@elonmusk in 2022 on Tesla's Supercharger network gross margin and profitability: https://t.co/yP7k6nVu0a
— Sawyer Merritt (@SawyerMerritt) June 9, 2023
Elon Musk announced back in 2022 that the Supercharger network was aiming for a gross margin of 30 percent and a net margin of 10 percent. This means that if 5 million GM and Ford EVs access the company’s network each year, spending an average amount of $100, it would add $50 million to Tesla’s coffers on a net basis.
The subsidies are $2.5bn "over 5 years", I hear. And that's for the entire charging industry. So, assuming Tesla gets 1/2, it's $250m/year at best.
Softens the blow of evaporating ZEV credit sales.
— Motorhead (@BradMunchen) June 9, 2023
What’s more, Tesla is expected to enjoy hefty subsidies for opening up its charging network, which can soften the impact of receding ZEV credits.
"Just because the stock price is up does not change the fact that Tesla is struggling," says @GLJ_Research founder @GordonJohnson19. "What...opening up their superchargers does is make it more likely that people are going to buy other cars. This is not good for $TSLA." pic.twitter.com/4ZUj7HBYyK
— Last Call (@LastCallCNBC) June 8, 2023
However, some analysts believe that this move would end up incentivizing non-Tesla purchases, which can hurt the company’s bottom line down the road.
Nonetheless, this move has been sufficient for investors to propel the stock upward for ten days in a row, the longest such winning streak since January 2021. This explosive upward thrust began in late May when Tesla peeked above its 200-day moving average for the first time since September 2022.
*TESLA ADDED TO WEDBUSH BEST IDEAS LIST
they prudently waited for the stock to be up 10 days in a row and up 130% from the 2023 lows
— zerohedge (@zerohedge) June 9, 2023
What’s more, Tesla has now been added to Wedbush’s “Best Ideas” list.
NEWS: To better educate potential buyers about how affordable the Model 3 and Model Y have become, @Tesla now displays the starting price after federal tax credits directly on the ordering pages.
Starting prices (after fed tax credit):
• Model 3: $32,740
• Model Y: $39,990 pic.twitter.com/VNW6Veo7cN— Sawyer Merritt (@SawyerMerritt) June 8, 2023
In a related encouraging development, all variants of the Model 3 and Model Y now enjoy the $7,500 federal tax credit. This means that the base Model 3 now starts at just over $30,000, while the basic variant of the Model Y now starts retailing at around $40,000.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
Follow Wccftech on Google to get more of our news coverage in your feeds.
