This week bp announced a deal with Tesla in which bp pulse will acquire ultra-fast EV charging hardware units for $100 million. This marks the first time Tesla’s chargers have been purchased for an independent third-party EV charging network. The roll-out, planned to begin in 2024, will expand the bp pulse EV charging network across the US and enable support for EV fleet customers via deployments at private depots.
The ultra-fast EV chargers have an output of 250 kW and will be branded, installed and operated by bp pulse. They will also be fitted with Tesla’s “Magic Dock”, which is compatible with both Tesla’s proprietary North American Charging Standard (NACS) and alternative Combined Charging System (CCS) connectors. This enables EV users with vehicles that have either connector type to use the chargers.
SAR believes this collaboration will be the first of many similar joint ventures between Tesla and US-based EV charging network operators. Several industry reports speculate that the price of a Tesla supercharger is up to 3 times lower than comparable units from competing vendors. Its 250W chargers are estimated to cost around $50,000 each, meaning this deal would provide bp with 2000 charges to add to its network.
SAR’s Device Forecast service and comprehensive EV Charging service contain projections for public EV charging stations for more than 50 countries globally. It forecasts more than 500,000 new public EV charging stations will be deployed in the US in the next 10 years. The projected installed base of charging stations with power ratings greater than 150 KW would amount to $2.5Bn worth of chargers, so it’s no surprise that Tesla has decided to offer its hardware to other network operators. What is still unclear but very likely is whether there are additional current or future licensing fees for the use of Tesla’s technology and connectors. This recurring revenue opportunity is much larger over time than the upfront hardware revenue opportunity.
The original article is here.