HeyMomTheMeatloaf

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So...just like a gas station, except margins of 300-400%.

Got it.


If you ignore the huge cost and upkeep of the chargers themselves, that might make sense.

Companies are losing money on DC fast charging, and the machines have to be replaced (or become obsolete...look at all the 30-50kw machines) before they pay for themselves.

This isn't about a start-up losing money the first few years, Tesla still loses money on charging even with higher rates after 10 years. It's a huge problem and the reason you don't see companies like Ford rushing to get into a losing market.

 

HeyMomTheMeatloaf

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Exactly. Tesla isn't installing 100 superchargers in the middle of the desert because they lose money.




I agree. It is not unusual for a new business to lose money initially. It is also not unusual to have capital expenditures that need to be depreciated over time, which causes negative cash flow at first but profit over time.

There is definitely a break even point for EA and others: how many cars need to charge per day in order for a station to become profitable? I have no idea, but as Meatloaf said, they are definitely charging more for electricity than they are paying for it.

So it seems to me the stations will give an investor a return on that investment, eventually. Is it a good return? I bet as the cost of building stations comes down due to economies of scale, it will be. It seems maybe Tesla will make money on DCFC because they already have the economies of scale going for them.
 

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So...just like a gas station, except margins of 300-400%.

Got it.
Gas pumps require very little upkeep. There's pumps out there that are 30+ years old and they deliver energy at the same rate as new pumps. Neither can be said for DC fast chargers, unfortunately.
 

 
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