Electric vehicles (EVs) are expected to be all over the roads in a few years. That alone makes electric vehicle charging stocks compelling prospects in the market. In fact, by 2050, we could see up to 700 million EVs according to analysts at Wood Mackenzie. They added:
“EV sales are expected to top a combined 7 million a year in China, Europe and the US by 2025. Improved EV costs will propel sales and double EV numbers to a combined 15 million a year in those three regions by 2030. All automobile sales in Europe (86%), China (81%) and North America (78%) will predominantly be EVs by 2050.”
In addition, major automakers are asking President Joe Biden to support a “comprehensive plan” on EVs, calling for tax credits and incentivized programs to get people to go electric.
As that happens, we’ll also likely see EV charging stations pop up everywhere. The President even said he would “work with our nation’s governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030.”
So, with all that being the case, it just makes sense to invest in EV charging stocks right now. Here are some of the best names of that group:
- Blink Charging (NASDAQ:BLNK)
- Chargepoint (NYSE:CHPT)
- Tortoise Acquisition II (NYSE:SNPR)
- Climate Change Crisis Real Impact I Acquisition (NYSE:CLII)
- TPG Pace Beneficial Finance (NYSE:TPGY)
Electric Vehicle Charging Stocks to Buy: Blink Charging (BLNK)
Since bottoming out around $1.40 in early 2020, BLNK stock exploded to a recent January high of $64.50 before pulling back. Today, the stock trades at around $41. However, I’d use this recent weakness in BLNK as a buying opportunity.
Why invest in this pick of the electric vehicle charging stocks? Blink Charging founder and CEO Michael Farkas said it himself. According to Investor’s Business Daily, Farkas noted: “As EV adoption continues to grow and utilization of chargers increases, we expect Blink-owned units will represent a valuable recurring revenue stream for many years to come.”
Growth also doesn’t appear to be a problem for this company. In it most recent quarter, fourth-quarter revenue jumped 250% year-over-year (YOY) to $2.5 million, up from $700,000. Full-year revenue was up 121% to $6.2 million, up from $2.8 million in the prior year. Finally, while Q4 charging revenue did slip from $400,000 to $200,000, much of that downfall was due to the pandemic.
Severely oversold, I’d use the pullback in CHPT stock as a buying opportunity as well.
Not only is this pick of the electric vehicle charging stocks over-extended on RSI, but MACD and Williams’ %R are both on the floor. On Mar. 30, the stock price closed at $22.46. However, today we’re seeing a near-term test of $30.
In its most recent earnings report, Chargepoint’s Q4 revenue dropped slightly to $42.4 million from $43.2 million YOY. Losses came in at $33.6 million, an increase from $32.5 million in the prior year. For full-year 2020, revenue increased to $146.5 million, up from $144.5 million YOY. Meanwhile, the loss on the year came in at $117.8 million, falling from $129.9 million.
Yes, these numbers are not the best. However, given the projected size of the EV market going forward, they should improve. Chargepoint is still a compelling play on the electric vehicle trend.
Tortoise Acquisition II (SNPR)
Not long ago, Tortoise Acquisition II announced that it was taking EV-charging-network company Volta public in a $2 billion special purpose acquisition company (SPAC) deal. That has led to SNPR stock spiking from a low of $9.46 in November to as high as $18.33 in early February.
Now, though, this one of the electric vehicle charging stocks may be worth buying, given the strength of Volta moving forward. The stock currently trades at a reasonable $11.29, too.
According to Volta’s investor deck, the company expects to increase its charging stations from 1,507 in 2020 to over 26,00 by the year 2025 (Page 47). It also expects to increase revenue from $25 million in 2020 to $826 million by 2025. That’s a five-year compound annual growth rate (CAGR) of 100% (Page 46).
Volta believes its revenue is “sustainable and will stack over time.” As pointed out by InvestorPlace contributor Thomas Niel, it also won’t make money from charging alone. Rather, Volta plans to make additional, consistent revenue off of “ads displayed on its stations” as well as from the sale of user data.
Climate Change Crisis Real Impact I Acquisition (CLII)
Climate Change Crisis Real Impact I is another SPAC among the electric vehicle charging stocks that you should keep an eye on. After hitting a high of $24.34 on the news of its merger with Evgo, the stock got caught up in the recent electric-vehicle-stock pullback.
However, with plenty of EV growth ahead — and, more specifically, the probable growing need for charging stations — the weakness may be a prime opportunity here.
But assumed growth is not the only reason to be interested in this name. Helping the situation is the fact that Evgo recently announced it will upgrade its stations to work with Tesla (NASDAQ:TSLA) connectors. The company stated:
“This will further EVgo’s reach as the only EV charging platform that is both 100% renewable electricity powered and capable of charging all three fast charging standards […] without the need of a separate adaptor.”
Of course, this development and the pullback in its price make CLII stock look not half bad.
TPG Pace Beneficial Finance (TPGY)
Last up on this list of electric vehicle charging stocks is TPG Pace Beneficial Finance.
Recently, TPGY stock pulled back with other EV stocks, falling from a high of about $34 to late-March closes as low as the $16 mark. Now, the stock is recovering and trading closer to $20 today. I’d use this recent weakness as an opportunity to buy it here ahead of the merger with Evbox Group, a provider of smart-charging solutions for EVs in Europe.
According to Reuters, the European Union has a target for 1 million public charging stations by 2024. What’s more, it’s planning to achieve up to 3 million stations by 2029. So, considering those goals, Evbox could have a substantial opportunity. And even better, according to the company’s investor deck, Evbox expects revenue to jump from 70 million euros ($82.3 million) in 2020 to more than 372 million euros ($437.5 million) by 2023 (Page 41).
That represents a CAGR of 74% — plenty of reason to consider investing in TPGY stock.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.