Elon Musk Says Tesla Aiming At 30% Gross Margin For Supercharger Network

Tesla Inc TSLA CEO Elon Musk said on Sunday that the electric vehicle maker is aiming at a 30% gross margin or about 10% profitability including all costs for its Supercharger network business.

What Happened: The billionaire entrepreneur wrote on the microblogging site Twitter in response to a post seeking details on Tesla’s Supercharger network value.

Investor Ross Gerber had asked Musk if Tesla works on “a 50% gross margin on the energy cost,” and “if it is across the network or it varies by location?”

Why It Matters: Tesla reported overall automotive gross margins of 27% last year and 21% in 2020. The EV maker does not reveal a unit-wise margin breakup.

Tesla owns and operates over 30,000 Superchargers in over 2,564 locations globally, of this over 8,000 Superchargers are in China alone. The Musk-led company has been scaling up its supercharging network amid rising competition.

Price Action: Tesla stock closed 0.6% higher at $1,04.6 a share on Friday.

Photo courtesy: Tesla