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Top 10 EV Charging Station Stocks to Invest in

Skylar Shaw

Apr 21, 2022 15:32


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Electric vehicle (EV) charging companies might be the next attractive stock market investment as the economy improves. To conserve the environment, many people are opting for electric automobiles.


The need for EV charging will increase as this demand grows, boosting the value of EV charging station inventories.


Although broad consumer adoption is still a long way off, now is an opportune time to invest in EV charging firms.


This essay will teach you all you need to know about the industry's prospects, advantages, and hazards. As the market rises, we also identify the finest EV charging station stocks to keep an eye on.

Industry Forecast for Electric Vehicle Charging Stations

As the EV charging station business develops, there are a few things to consider before making a purchase.


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COVID-19's Influence

COVID-19 influences the worldwide economy and the market for electric vehicle charging stations.


Countless lockdowns were conducted all around the globe. People remained at home, reducing travel and transportation costs. To go to work or meetings, no one required a vehicle anymore. As a result, we've seen a significant decline in EV charging station utilization.


Beyond the outbreak of COVID-19, the pandemic had a significant long-term effect.


Employees at several companies were given the option to work remotely forever. Some businesses choose not to renew their leases. Because workers do not need to travel as frequently as they used to, the vehicle sector may see a slowdown—the requirement for EV charging stations decreases as people drive less to work every day.

EV Charging Station As a Low-Cost Alternative

Consumers continue to pay more for petroleum goods, particularly in developing markets.


One option for these folks is to reduce their driving time (easier said than done). Another option is to switch to less expensive electric cars. Manufacturers are also looking into innovative techniques to make long-lasting EV batteries, which will increase the battery's lifespan.


A perfect storm of low prices might boost EV charging station demand. The decreased cost of electric automobiles and batteries will raise stock prices.

Market Dominance in the Asia Pacific

The Asia Pacific market is expected to have the most significant EV charging share in 5-6 years. The Chinese economy is one of the critical drivers of this expansion. The proliferation of EV charging stations will be aided by further economic growth, which will bring sophisticated technologies.


Another element driving development is the Chinese government's push for the usage of electric cars.


The government has committed $2.4 billion to improve the country's electric vehicle charging station infrastructure by 2020. Governments in Korea, Japan, and India have all announced plans to increase the number of electric cars on the road in their respective countries.

Why Should You Buy EV Charging Station Stocks in the Future?

Is it worthwhile to invest in electric vehicle charging station stocks?


The electric vehicle and charging station business propelled the renewable energy trend. The charging sector will thrive as a result of the millions of electric cars that will need frequent charging. So it's pretty much the safest option if you want to keep ahead of the curve.


Aside from passenger automobiles, the following vehicles will need electric charging:


  • Vehicles used for business

  • Tractors

  • Vans that deliver packages

  • Trucks that deliver packages

  • Buses


Over one million electric automobiles exist in the United States, according to Blink Charging. That number is predicted to increase to 13 million by 2030.


There are various more reasons why you might consider investing in the electric car charging sector, in addition to government renewable energy plans:


Disruptive, innovative technologies will soon replace gas stations.


Many firms will use the flywheel idea to scale up.


Rising EV revenue will be driven by changing consumer choices and high-growth potential.


EV charging station firm growth will also be fueled by customer loyalty and recurring revenue models.


The EV charging station sector will prosper if the battle against climate change gains traction.


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The Top 10 Electric Vehicle Charging Station Stocks

You must decide whether or not to invest now that we have a greater grasp of the industry's potential, rewards, and risks. You may always invest in exchange-traded funds to reduce your risk (ETFs).


Investing in a single firm, on the other hand, might optimize your rewards.


The best EV charging station firms to watch over the next decade as the sector matures listed below. We describe each company's distinct benefits.


As a result, you'll be able to make an informed purchase choice.


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Rivian

Rivian Automotive (RIVN) is a California-based electric vehicle company. Because of its tight ties to Amazon, it is a well-known brand in the EV world, and EV pickup trucks and SUVs are produced by the firm.


Rivian went public in early November 2021, with a market capitalization of $80 billion.


Because it is now creating a large distribution of fast chargers and EV charging infrastructure. The firm is also recognized as one of the best EV stocks overall, equivalent to Tesla, General Motors, NIO, and Ford.


By the end of 2023, Rivian hopes to have established a foothold in North America with 10,000 Level 2 chargers and 3,500 fast chargers.


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Beam International

Beam Global, launched in 2006, has established itself as a significant participant in the solar energy industry. It's a green company with an extensive electric vehicle charging stations network. One of its distinguishing features is that all of its products are powered entirely by renewable energy.


Beam Global has established a strong reputation in the business by attracting customers such as Johnson & Johnson, Pfizer, Alphabet, and others. It also built partnerships with the US Marine Corps and NASA through long-term contracts.


It's also worth mentioning the revenue rise. Sales increased by 63 percent to $2.02 million in Q3 2021, compared to Q3 2020.


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Volta Inc. 

Investors like Volta's unusual business approach, which is one of the reasons it made a list. This company's sales plan includes a digital advertising twist, and it sells advertising space on its displays while providing EV charging stations and infrastructure. Because customer attention is so significant in marketing, Volta's long-term approach may be crucial.


The company's digital media division produces a significant amount of money. In Q3 2021, the corporation had $8.5 billion in revenue, up 77 percent from the previous year. The company's behavior and commerce division contributed $7.36 billion to the total.


Because of the company's role in our everyday lives, Volta is an excellent investment opportunity.


It provides charging outlets in critical locations where clients work, live, plays, and shop. Its charging outlets serve not just the local business sector but also make it simple for consumers. The huge monitors provide the ideal advertising area.


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ChargePoint Holdings

ChargePoint Holdings provides business, fleet, and residential clients with innovative EV chargers and solutions.


The firm, based in California, also monitors and installs electric vehicle charging stations. Because of its subscription-based business model, which generates recurring income, we favor the long-term growth potential.


ChargePoint is a market leader in North America regarding Level 2 charging. The firm has a presence in 132,000 private and public charging points in North America and Europe as of January 2021. The Express Plus and Express 250 fast-charging stations are also available.


Commercial customers, such as shops or offices, account for most of the company's income.


These venues will provide charging stations to entice workers or other companies to their premises.


It's worth noting that the corporation doesn't make money from selling power like a utility.


ChargePoint earns money by providing and properly managing electric vehicle charging stations, making it one of the most well-known EV charging companies.


The following is a breakdown of the company's revenue:


70% of all income comes from commercial clients.


Residential clients account for 14% of overall income.


5% of overall income comes from other sources.


ChargePoint has several risks, including earnings droughts, limited growth, and the prospect of commoditization.


Although the company had a revenue drought in 2020, it predicts a 37 percent revenue gain in FY 2022.


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EVgo Inc.

Because of its extensive network of fast-charging stations, EVgo is a competitive competitor. The firm set new records for revenue and volume in the second quarter, but it also has a solid growth strategy.


With the rise in electric car use, EVgo's quick growth strategy puts it in a strong position.


The company's DC rapid charging business strategy is entirely based on renewable energy (as of 2019). EVgo has partnered with General Motors to establish a charger rollout campaign.


By 2025, the business expects to have built a network of 3,250 DC fast charging points. Over 2,000 new charging spots are being made, according to the company.


Within the next 10 to 24 months, this group of stalls will be operational. Investors will be watching for future quarterly earnings announcements, which should indicate how the growth is progressing.


EVgo will continue to get government assistance. Governments continue to advocate for global greenhouse gas reductions to combat climate change.


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ABB Ltd. 

When it comes to major electrical equipment, robotics, and automation, ABB is one of the most well-known firms in the world. The firm is not just one of Switzerland's largest employers, but it has also been operational for over a quarter-century.


In the first and second quarters, the company's three business sectors were profitable. ABB's electrification business division is likewise evolving.


Its e-mobility division was recently renovated and modified. Motion, robotics, discrete automation, and process automation are among the company's primary segments.


China is ABB's most important geographical growth market, with a year-over-year rise of 24%. Additional countries associated with sectors such as South America, North America, and the EU, according to analysts, have lots of space to grow.


Data centers, residential buildings, commercial structures, food and beverage, water, e-mobility, machine builders, chemicals, and materials witnessed significant demand growth.


ABB is poised for long-term development because of its significant worldwide presence in EV infrastructure. ABB's devices are available in 85 countries, with a total of 400,000 worldwide chargers.


The corporation is also the global leader in terms of billing revenues and infrastructure. ABB has purchased a controlling share in Chargedot, demonstrating its commitment to long-term development.


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SunPower Corporation

SunPower has built a reputation as a dependable solar firm over the last ten years. However, the corporation has undergone a significant shift during the past year. SunPower separated its manufacturing division, which had previously been its most muscular competitive edge.


By abandoning its utility-driven projects, the business shifted its emphasis to commercial and residential solar. SunPower is beginning to generate money in the financial statements by extending its energy storage technologies.


SunPower's most significant issue thus far has been generating revenue. Due to the competitive nature of the business, the firm has had difficulty making a long-term profit from the sale of solar panel systems. Profit margins have improved significantly due to the company's renewed emphasis on commercial and residential solar.


Debt is the company's second major stumbling block, and SunPower had poor results after investing hundreds of millions of dollars in its manufacturing division. The debt on the balance sheet appears considerably more evident now that this firm has been split off as Maxeon Solar Technologies.


SunPower will undergo several further alterations throughout the future decade. Instead of being a solar installer and producer, the firm is launching energy management and storage projects for companies and residences.


Now that SunPower's margins have improved, it must translate these pivots into long-term volume growth. This aim should be considerably more straightforward because of the company's services and software approach.


SunPower's comprehensive approach to energy management will be a critical competitive advantage.


It now has a solid system to govern how solar energy is transmitted, stored, and used on the grid.


The only thing to keep in mind is that interest rates are increasing. SunPower, for example, benefits from cheaper interest rates when financing long-term projects. If lending rates continue to rise, these creative ventures may be hampered.


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Blink Charging Co.

Blink Charging Co. operates one of the world's largest EV charging networks. With over 30,000 charging stations, the firm has a presence in 13 countries.


Blink Charging is also fast expanding, with over 3,000 EV charging stations deployed in Q3 2020, up 351 percent from the previous year.


Although the stock has just dropped, it is still $17 below its November high. According to H.C. Wainwright, the business has a current price objective of $50, which is about twice its current trading price.


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NIO Inc.

NIO is a Chinese electric car company that promotes mobile charging and charging infrastructure through the internet. The firm was dubbed the "Chinese Tesla" when its stock rose 3,000 percent between March 2020 and January 2021.


It is still a solid company with growth potential, despite a 40% slump from its all-time high to around $40.


The company's most distinct competitive advantage is its battery-swapping service. This battery as a service product approach removes the need to charge an electric vehicle by plugging it in.


Drive into a battery-swapping facility, where the vehicle will be recharged in five minutes. The firm now operates over 500 stations and plans to expand into Norway in the near future.


This business model produced 4 million swaps in its first year, and NIO said that it would open 700 more before the end of the year. The business wants to deploy 4,000 battery-swapping stations by the end of 2025. This battery-as-a-service concept reduces the cost of an electric vehicle by $10,000, giving it a significant competitive edge.


The electric vehicle manufacturing of NIO is also remarkable. The business announced 10,628 car deliveries in September on the first day of October, representing a 126 percent increase over the previous year.


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Tesla Inc.

Tesla is one of the most intriguing electric vehicle (EV) stock opportunities available today.


The company's inventive (but divisive) CEO, premium automobiles, and futuristic services make it a risky investment.


With its EVs, Avs, solar generating systems, and batteries, the business has the ability to disrupt the power generation and automobile sectors.


When it comes to electric car production, Tesla is in a league of its own. If electric cars surpass gas-powered automobiles, the corporation will be in the greatest position to prosper. Its extensive network of superchargers and battery gigafactories provides it with a competitive edge and a solid presence in the sector.


The business said that it would reduce battery prices by more than half over the next several years, perhaps resulting in a greater profit margin. When you combine this with Tesla's extensive supercharging network, you have a long-term investment that will pay off.

What Is The Best Electric Vehicle Charging Stocks?

Blink Charging (BLNK), Wall Box (WMX), EVgo Inc. – (NASDAQ: EVGO), and CHARGE Point Holdings are all ideal EV charging station companies to invest in (NYSE: CHPT). Some of these businesses specialize in EV charging, while others may provide a variety of charging services. Before investing in any stock, you should conduct your own research, but here are some solid places to start.

Who Is The Market Leader In Electric Vehicle Charging Stations?

Tesla is the world's biggest electric vehicle charging infrastructure provider, while ChargePoint, with its extensive network in North America, is the second-largest provider. It offers over 60,000 charging stations in over 20 locations to assist clients with their electric car setting needs.


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