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BP Aims $1B Investment in Tesla Superchargers for U.S. Growth

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BP plc (BP - Free Report) , a global leader in the energy sector, is set to embark on a significant expansion of its electric vehicle (“EV”) charging business in the United States. In a recent Bloomberg interview, Sujay Sharma, CEO of BP pulse Americas, revealed the company's ambitious plans to acquire Tesla (TSLA - Free Report) Supercharger sites and ramp up its network of charging points.

Acquisition Strategy

Sharma disclosed that BP is actively pursuing the acquisition of Tesla Supercharger sites across the United States. This move comes in response to Tesla's decision to scale back its Supercharger team, providing an opportunity for BP to expand its presence in the rapidly growing EV market. The company is keen not only on acquiring the sites but also on securing the skilled workforce behind them.

Investment Commitment

BP is committing a substantial investment of $1 billion in the expansion of its charging network. According to Sharma, this investment will be strategically deployed, with half of the amount earmarked for expenditure within the next 2-3 years. The goal is to install over 3,000 charging points across the country by 2030, catering to the increasing demand for EV charging infrastructure.

Talent Acquisition and Real Estate Expansion

In addition to acquiring Tesla Supercharger sites, BP is actively scouting for talent and real estate opportunities to support its growth ambitions. Despite the challenges posed by Tesla's restructuring efforts, Sharma affirmed BP's determination to recruit skilled professionals and secure prime locations for charging stations. The company's focus remains unwavering amid industry dynamics.

Deployment Timeline

Sharma provided insights into the deployment timeline for the acquired Tesla Supercharger hardware. With an agreement in place to procure approximately $100 million worth of equipment, BP aims to commence deployment later this year, with further expansion expected in early 2025. This strategic move highlights BP's commitment to swiftly bolster its charging infrastructure capabilities.

Conclusion

BP's ambitious plans to acquire Tesla Supercharger sites and invest heavily in expanding its charging network signal a milestone in its journey toward becoming a key player in the EV market. With a clear focus on strategic acquisitions, talent acquisition and technology deployment, BP is poised to capitalize on the growing demand for EV infrastructure in the United States.

Zacks Rank & Key Picks

BP and TSLA currently carry a Zack Rank #3 (Hold) each.

Investors interested in the energy sector may look at a couple of better-ranked stocks like Hess Corporation (HES - Free Report) and SM Energy (SM - Free Report) , each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. The company currently has a Growth Score of B.

The Zacks Consensus Estimate for HES’ 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

SM Energy plans to broaden its oil-focused activities in the forthcoming years with a growing emphasis on crude oil, particularly in the Permian Basin and Eagle Ford regions. Its attractive oil and gas investments have the potential to create long-term value for shareholders.

The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $6.53. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.


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