Addressing the #1 concern of would-be electric-car buyers … how “filling up” your EV will look tomorrow … huge growth numbers on the opportunity

What’s the number-one reason why the average American driver doesn’t buy an electric vehicle (EV)?

If you picked “too expensive,” you’re close, but no.

It’s a fear of charging logistics.

In other words, drivers are worried about getting out on the road in unfamiliar territory, running low on battery, and being unable to find a charging station.

Price is a significant factor, but it doesn’t rank as high as charging.

Here’s TechCrunch with the details:

Asked about the top three concerns over buying or leasing an EV, 61% of respondents said they were concerned with charging logistics, 55% said they would worry about the number of miles the vehicle can go before it needs to be charged and 52% cited the costs involved with buying, owning and maintaining an EV.

Our hypergrowth investing expert Luke Lango is a major bull when it comes to top-tier electric vehicle stocks. However, he’s also the first to highlight the need for an infrastructure buildout before we reach the ultimate tipping point where people buy electric vehicles without a second thought.

From Luke’s latest issue of Hypergrowth Investing:

…The expansion of EV charging infrastructure is mission-critical to the mass deployment of electric vehicles.

After all, what good is an EV without charge?

None at all — it’s pretty much useless.

Now, you’re probably connecting the dots and jumping ahead here…

“I see where this is going, Jeff. If the expansion of charging stations must precede the growth of electric vehicles, then investing in charging station stocks is the way to go.”

You’re brilliant. But perhaps you’re unaware of just how brilliant.

You see, most investors don’t realize exactly how many of these charging stations there will be – and why.

Today, let’s fill in the details. You’ll finish this Digest more informed than nine out of 10 investors out there. And I suspect you’ll see the opportunity in electric charging station stocks quite differently.

***A primer on electric vehicle charging

All you early-adopter electric-vehicle owners, please bear with me. We need to begin our analysis by making sure we’re all on the same page about the conditions setting up today’s investment opportunity.

So, for all you gas-guzzlers…

How long does it take to “fill up” an electric car, so to speak?

The answer is actually rather complicated, with a wide range. But overall, we’re talking a ballpark of between an hour to twelve hours.

The difference boils down to the different type of EV chargers out there.

Let’s turn to Luke for help with these details:

There are two classifications of AC electric vehicle chargers – L1 and L2.

L1 chargers are the most basic. They’re slow but really cheap. They’ll give you about three to five miles of EV range per hour of charging.

Given that they’re low-cost, low-performance in nature, L1 chargers are common as residential solutions. But they’re very rarely used beyond the home.

L2 chargers are a big step-up from L1s. They’re much faster but also much more expensive.

They’ll give you around 30 miles of EV range per hour of charging. These L2s constitute the majority of chargers on the road today.

Now, if you’re like me, you’re not exactly thrilled with what you’re reading.

What about that summer road-trip you’re planning to take? At 30-miles-per-hour of charging, you’ll spend half your weekend getaway killing time at the charging station. Who wants that?

Well, that’s where “DC” charging stations come in.

We won’t dive into all the details of “AC” versus “DC” power as Luke explained in his issue; but in short, these DC charges are super-fast – we’re talking over 100 miles of EV range for hour of charging. Unfortunately, there are only a few thousand of these across the entire U.S.

But being realistic, even if you find one of these DC charging stations, you’re still twiddling your thumbs for at least an hour if you’re recharging an empty battery.

No one wants to wait that long – which is why how we “fill up” our electric vehicles is going to change.

In fact, it’s already changing. And that points toward the scope of the investment opportunity before us today.

***“Filling up” in the future

Given the costs of these various types of chargers, as well as their associated charging ability, what will filling up “tomorrow” look like?

Back to Luke:

…The future of the EV charging landscape will be a mix of mostly L2 chargers throughout urban areas with some DC fast chargers on interstate highways.

That’s because L2 chargers are good enough.

The reality is that the enormous shift from gas stations to charging ports will be accompanied by an equally enormous paradigm shift in where we “fill up” our vehicles.

Since EV chargers are tiny and can be built anywhere there’s an electric connection, the days of dedicated gas stations are over.

You won’t see EV charging stations replace gas stations. You’ll see gas stations become extinct.

And EV charging ports will pop up everywhere from your gym parking lot to your local grocery store and mall lots.

I’ve noticed this in Los Angeles where I live.

There are a handful of charging stations in a public parking lot near the beach… more at the grocery store… several at the mall… a few just went in at the local Topgolf location.

Meanwhile, what I haven’t seen is a central “electric fill-up station” with, call it, 12 bays.

That’s because just about no one wants to sit around for three hours while their car recharges.

Here’s Luke with what all of this means:

The result?

You’ll constantly be charging your EV on the go.

So long as you aren’t traveling hundreds of miles and/or between cities and states, L2 chargers will do the job just fine because you’ll be charging every time you’re grocery shopping or working out.

Given this, we’re looking at a future that’s going to feature charging stations all over our communities. “Plugging in” after we park will become a kneejerk habit.

By the way, these “fill-ups” cost roughly $2 per 30 minutes of L2 charging in a public lot.

Looking big-picture now, what are the growth numbers on this opportunity?

***Estimates for a national electric charging station build-out

Luke tells us that there are roughly 130,000 EV charging ports across the U.S. today. But as this decade rolls on, that number is going to skyrocket.

From Luke:

The International Energy Agency estimates that the number of EV chargers globally is going to have to increase by 12X by 2030 in order for companies and governments to reach the low-end of their targets for 30% of new car sales to be electric by then.

In other words, the EV charging market will explode in size over the next decade. As it does, it will lay the foundation for the whole EV market to do the same.

Keep in mind, the electric vehicle market is expected to expand just 3X – 4X over the next decade.

While that’s great, if you’re looking for super-sized growth, charging stations with their 12X-growth projections are clearly the way to go.

***As to ways to invest, a handful of the most well-known related stocks are ChargePoint (CHPT), Blink Charging (BLNK), and EVgo (EVGO)

In his analysis, Luke highlights how EVgo just announced a partnership with General Motors. The two companies will build 2,000 EV chargers at 500 Pilot locations across the U.S.

The goal is to alleviate the driver-concern we noted at the top of this Digest – logistics.

GM and EVgo want an EV charger approximately every 50 miles along America’s highways. No more logistical stress!

This is truly a massive investment opportunity. And you’re in the right place, at the right time – the ground floor.

This is one of those “buy it now and forget it about for 10 years” investments, which transforms a portfolio.

If you’d like to stay on the cutting-edge of developments in the EV sector including this charging station opportunity, consider joining Luke in Innovation Investor. He has an entire sub-portfolio dedicated to the EV sector, which includes exposure to charging stations. To learn more, click here.

In any case, if this EV charging opportunity hasn’t been on your radar, give it a hard look. There’s huge growth coming.

Have a good evening,

Jeff Remsburg