--- title: "Elon Musk confirms Tesla restaurant expansion, \"Supercharging + Dining\" narrative supports trillion-dollar market value" type: "News" locale: "en" url: "https://longbridge.com/en/news/283289103.md" description: "Elon Musk confirmed that Tesla will expand its restaurant business, with more Tesla restaurants opening in the future. After the first restaurant opened in West Hollywood, market attention on this \"side business\" has increased, believing it could be an important part of the Tesla ecosystem. The new restaurant will be located in Palo Alto, serving high-income tech individuals, combining charging, dining, and entertainment. Since its opening, the first store has achieved an annualized revenue of $4 million, selling over 50,000 hamburgers" datetime: "2026-04-20T03:32:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283289103.md) - [en](https://longbridge.com/en/news/283289103.md) - [zh-HK](https://longbridge.com/zh-HK/news/283289103.md) --- # Elon Musk confirms Tesla restaurant expansion, "Supercharging + Dining" narrative supports trillion-dollar market value According to Zhitong Finance APP, following the opening of its first store in West Hollywood eight months ago, Tesla Inc. (TSLA.US) founder Elon Musk has officially confirmed that the company's retro-futuristic charging restaurant will begin expansion. In the context of slowing growth in car sales, this seemingly marginal "side business" is being re-evaluated by the market—it may not just be a restaurant business, but a key piece in Tesla's strategy to build an ecological moat. Earlier this week, Musk shared a video of the ordering experience released by Tesla North America on social media platform X, showing a driver approaching the West Hollywood restaurant and completing an order from inside the car. Musk captioned the post: "More Tesla restaurants are coming soon." The day before, he had just responded to a suggestion from a netizen about opening a Tesla restaurant in Palo Alto, California, with a simple one-word reply: "Of course." The choice of Palo Alto is not accidental. As the location of Tesla's engineering headquarters, it is situated in the heart of Silicon Valley, surrounded by Stanford University and a large number of tech professionals, with one of the highest densities of electric vehicles in the U.S. As early as October 2025, Musk publicly envisioned: "It might make sense to open a restaurant near the Texas Gigafactory in Austin and the engineering headquarters in Palo Alto." Now, Palo Alto is the first to move from concept to reality. Analysts believe the new store will serve both internal employees and brand display functions, while also targeting the high-income tech crowd in Silicon Valley, continuing the "charging + dining + entertainment" composite scenario model. **First Store Performance: $4 Million Annual Revenue** Looking back to July 21, 2025, the world's first Tesla Supercharger restaurant opened on Santa Monica Boulevard in Los Angeles. This building, covering over 9,000 square feet, is equipped with 80 V4 supercharging stations and two 20-meter giant LED movie screens, with hundreds of consumers queuing for 13 hours on opening day. Data disclosed by Tesla shows that since its opening, the first store has sold over 50,000 hamburgers, averaging about 700 per day. In the fourth quarter of 2025, the restaurant processed over 30,000 hamburger orders and 83,000 orders of fries in a single quarter, with quarterly revenue exceeding $1 million, resulting in an annualized income of about $4 million—this figure surpasses the annual revenue of an average McDonald's store. However, recent visits by several foreign media outlets have found that the popularity of the West Hollywood first store has significantly declined. The parking lot usage rate is below 50%, the Optimus humanoid robot and celebrity chef Eric Greenspan have both left, and the 24-hour operating hours have been significantly reduced. In response, market analysts point out that the decline in foot traffic from peak levels is a necessary process for trendy business models to return to normalcy, with the key indicator being whether the core business logic still holds. Data shows that in the first quarter of 2026, milkshake sales at the first store continued to grow, with the global supercharging network adding 2,500 new charging stations during the same period, completing 53 million charging services, a year-on-year increase of 26%—the foundation of the supercharging network is still expanding rapidly. **The Real Calculation Behind the Hamburgers: Turning Wait Time into Consumption Scenarios** From a financial perspective, even if the Palo Alto store opens on schedule and replicates the revenue level of the first store, the combined annual revenue of about $8 million from the two restaurants would account for less than one ten-thousandth of Tesla's total revenue of approximately $94.8 billion in 2025 So, why is Musk going to great lengths to venture into the restaurant business? The answer lies in the business model of "monetizing time." The average stay time for owners at traditional supercharging stations is about 28 minutes, while Tesla restaurants extend this figure to 62 minutes by embedding dining and outdoor movie experiences, increasing consumption frequency by more than three times. Revenue structure shows that the first store's electricity revenue accounts for about 55%, while dining and related products contribute as much as 45%—Tesla not only sells electricity but also sells burgers and brand experiences. The deeper strategic intention is differentiated competition. As competitors like BYD and Nio accelerate the construction of charging infrastructure, Tesla's first-mover advantage in the supercharging network is being chased. By upgrading charging stations to "destinations," Tesla is transforming energy replenishment points into anchors for brand loyalty. At the same time, Tesla is accelerating its transformation from an "automaker" to an "energy and service company." The full-year financial report for 2025 shows that service and other revenues reached $12.53 billion, a year-on-year increase of 19%; energy business revenue was $12.8 billion, a year-on-year increase of 27%. Non-automotive business revenue exceeded $25 billion, maintaining a high double-digit growth rate. As of April 2026, the number of Tesla supercharging piles worldwide has surpassed 80,000, with each pile being a potential touchpoint for embedding dining, retail, and services in the future. In addition to Palo Alto, potential locations mentioned by Musk include the Giga Texas headquarters in Austin, Texas, and the SpaceX interstellar base. Among them, Austin is considered the most urgent due to its proximity to the global headquarters. Overseas, a plot of about 3,000 square meters has been reserved next to the Shanghai Pudong super factory. If the Shanghai store is established as planned, Tesla's "supercharging + dining" model will be tested in the overseas market for the first time. However, these plans are still in the early evaluation stage, and Tesla has not yet announced a specific timeline. **Wall Street's Pricing Game: Can the Dining Narrative Drive Valuation?** For Wall Street, the restaurant itself is not enough to change the financial model, but its direction towards "monetizing non-automotive business" has become the focal point of debate between bulls and bears. Currently, analysts have highly divergent ratings for Tesla: Deutsche Bank maintains a "Buy" rating with a target price of $465; UBS just upgraded its rating from "Sell" to "Neutral," with a target price of $352; JP Morgan maintains an "Underweight" rating with a target price of only $145, warning that the stock price could be halved. The analyst consensus target price is about $399, which is basically in line with the current stock price. ![050ab0a8228f5787e1952f53bfb0690.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260420/1776653856636640.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) The essence of this divergence is the difference in understanding of "what Tesla really is." Pessimists see it as an automaker facing an inventory crisis, while optimists view it as a tech platform on the brink of an explosion in AI and energy business. The symbolic significance of restaurant expansion is that it further corroborates Tesla's continued bet on the "non-automotive" track—when the growth rate of car sales slows down, Musk is trying to transform every minute of user waiting time through supercharging, software, energy, and dining into ecological stickiness and brand premium ### Related Stocks - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [TSL.US](https://longbridge.com/en/quote/TSL.US.md) - [TSLG.US](https://longbridge.com/en/quote/TSLG.US.md) - [TESL.US](https://longbridge.com/en/quote/TESL.US.md) - [TSLL.US](https://longbridge.com/en/quote/TSLL.US.md) - [TSLT.US](https://longbridge.com/en/quote/TSLT.US.md) - [TSLR.US](https://longbridge.com/en/quote/TSLR.US.md) - [TSDD.US](https://longbridge.com/en/quote/TSDD.US.md) - [TSLQ.US](https://longbridge.com/en/quote/TSLQ.US.md) - [09366.HK](https://longbridge.com/en/quote/09366.HK.md) - [07766.HK](https://longbridge.com/en/quote/07766.HK.md) - [07366.HK](https://longbridge.com/en/quote/07366.HK.md) ## Related News & Research - [Elon Musk Says 'More' Tesla Diners Are Coming After Hinting Where The Next Location Could Be](https://longbridge.com/en/news/283088411.md) - [Tesla Diner expansion confirmed as Elon Musk says “more coming”](https://longbridge.com/en/news/283182854.md) - [Tesla Earnings, Hormuz and Other Key Things to Watch this Week](https://longbridge.com/en/news/283260603.md) - [Tesla finalizes AI5 chip design, Elon Musk makes bold claim on capability](https://longbridge.com/en/news/282876668.md) - [Unitree Announces Free Shipping of Humanoid Robots to the U.S. in New Challenge to Tesla](https://longbridge.com/en/news/282847123.md)