Tesla’s Charging Network
Tesla (NASDAQ: TSLA) is an electric vehicle, energy, and autonomous vehicles company that focuses on transitioning the world to sustainable means of transportation.
Creating a renewable energy ecosystem is a part of the plan, which is why Tesla creates a vast amount of energy solutions such as their solar roof, power walls, and more.
Charging networks are one of Tesla’s many strong points which allows their EV drivers to remain worry-free while driving. To date, Tesla maintains over 25,000 superchargers around the world and another 4,500 destination chargers to go along with them. This makes Tesla the largest owner and operator of any charging infrastructure network in existence today.
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This alone shows the sheer advantage Tesla has over their competitors, yet they are not even close to completion.
Sharing the Network
Tesla recently confirmed to Norwegian officials that the supercharger network will be opened to all EVs, regardless if it’s a Tesla or not, by September 2022. This was after a handful of rumors on how Tesla could further accelerate their business by opening stations to non-Tesla vehicles.
Tesla aims to be self-reliant, hence why they developed their fast-charging EV network instead of becoming dependent on third-party networks.
Previously, only Tesla vehicles could charge at these stations, which made it frustrating for EV owners who don’t own a Tesla. It was apparent that it was only a matter of time until Tesla made their chargers available to other vehicles because of the idea being tossed around for quite a few years.
The only downside is that traffic at charging locations may be increasing, although Tesla is still opening more stations worldwide which should limit the surge in charging demand. Luckily, Tesla owners can charge their vehicle up to 200 miles in about 15 minutes, so they’ll be quick compared to other EVs.
This move from Tesla may increase the awareness of the power and capabilities of their worldwide charging networks. There’s no way to measure the value of this network currently, but it’s not farfetched to say it’s going to have a monumental long-term impact on Tesla in a very positive way because of the potential revenue increases and brand awareness that it will create from the surplus of non-Tesla vehicles.
Long-Term Investor Sentiment
Noise and sentiment on Tesla change every so often, but it’s crucially important to note that most of the time, Tesla has been improving and expanding in the background. This will show in their long-term achievements as they roll out more hardware and software solutions to their entire sustainable ecosystem of products.
Revenue growth has been a component of Tesla that will most likely continue to impress shareholders and speculators, which may put an end to the fear, uncertainty, and doubt constantly surrounding Tesla’s mission.
Additionally, their CEO, at times controversial and opinionated figure Elon Musk, is a great leader for this mission. The key is to focus on the long-term objective, and not short-term narratives.
Tesla has already been battling the competition over EVs, but they are still standing and winning. In terms of specs, performance, hardware, and software technology, no one comes close to Tesla. Not even these so-called ‘Tesla killers” that appear every so often which always stirs up Wall Street’s perspective.
Over the long term, Tesla looks to sustainably grow their vehicle fleet by opening more factories, building more stations for the charging network, and more recently their full self-driving capabilities through endless data feedback loops for further improvement.
Overall, a company like Tesla that’s mission is clear, motivated, and inspirational is truly a rare find which can make a great stock to add in investors’ portfolios who want a piece of that sustainable energy exposure.
It’ll be exciting to see what Tesla is up to next.
Closing Thoughts
This is not intended to be investment advice. As always do your own due diligence and invest based upon your own risk appetite and consult your own financial advisor for the right investment strategy for your specific needs.
If you are long term bullish on TSLA a great way to gain exposure to this stock and its upside is purchase CALL LEAP option contracts that have an expiration of six months or more. Buying CALL LEAP option contracts allow you to participate in the upside of a stock’s movement without having the downside risk of outright owning 100 shares of the same stock. As I write the TSLA March 22, 2022 CALL option at the $620 strike price has a Delta of .70 and you would pay a premium of $16,828.00 to control 100 shares compared to $71,000+ to outright own AND control the same number of shares.
However, if you wanted to make the capital expenditure to acquire and own 100 shares of TSLA a better way of positioning your capital to benefit from a multi directional move is to sell PUT LEAP options at the same Strike price and the same expiration date as mentioned above. By doing this you can collect more than $7,000.00 in premium (should be read cash) up front that can be used to offset the cost of owning shares at that strike price in the event that TSLA shares fall below $620 at expiration.
If by expiration TSLA share price is above $620 you will have earned an 11.66% return on your capital deployed. Not a bad return for a sit and wait strategy. However, if TSLA shares are lower than $620 by expiration then you will be obligated to purchase 100 shares of TSLA at the strike price of $620, which would still put you ahead of shareholders that outright bought the stock because you received money upfront (the premium) to offset the cost of ownership.
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