EV charging stocks are a tricky investment because, while they certainly have a future, where and what kind of future is complex.
Electric cars are becoming more popular. Hence, the demand for charging stations is also increasing. This has led to the rise of EV charging stocks. So let’s discuss the investment opportunities in EV charging stocks and why you need to allocate some capital to these rapidly growing enterprises.
The EV charging stations market size is expected to grow to $123.12 billion by 2030, according to a report from Emergen Research. And these stocks are a great pick-and-shovel play, as the global demand for this technology is expected to increase exponentially in the coming years.
As more people are selling or trading in their gas or diesel cars, they will be looking for companies to act as providers of charging stations. It opens up a host of great opportunities for aggressive investors.
ChargePoint (NYSE:CHPT) is one of the leading companies the space.
ChargePoint has been able to create a solution for every type of vehicle and every type of charger. They have made it possible for you to charge your car without worrying about finding parking or a power outlet.
Users can also go to ChargePoint locations to power their Tesla (NASDAQ:TSLA) vehicles. You just need a Tesla adapter.
Using the ChargePoint network, you can conveniently charge your electric car or other EVs whenever and wherever you go. You’ll never come up short with charging compatible with your vehicle, as over 30,000 charging stations are operating across 14 countries.
Its most recent quarter saw Chargepoint’s revenue more than double year over year to $81.6 million and its diluted earnings loss per share of 27 cents was down from a loss of 83 cents YOY.
EV adoption is still relatively early. But ChargePoint technology is likely to be a huge success.
EVgo (NASDAQ:EVGO) is a leading provider of electric vehicle power stations. It is constantly expanding, most recently signing an agreement to put charging stations at FlyingJ and Pilot travel centers.
EVgo collects data on how EV owners charge their cars. This information will help improve the network of charging stations through optimization strategies.
As a new company, EVgo still needs to create a lot more revenue opportunities. That will require significant investments. And it is showing on the bottom line.
Revenue was up by 86% in the latest quarter, and it saw a surge in adjusted gross margin. But the investments to grow revenues are pushing down earnings. EVgo’s EPS was a 21-cent loss. And the adjusted EBITDA was a loss of -$18.2 million, about double the previous year.
However, as InvestorPlace’s Patrick Sanders has said, the company is growing its charging stations amid a wider government push to get more EV infrastructure online.
Accumulating alliances with companies such as Toyota (NYSE:TM) can build it up over time. Hence, remain patient with this investment.
Wallbox (NYSE:WBX) has been in the business of designing, manufacturing, and distributing EV chargers since 2015. It has a team of talented engineers to help design the best possible charging solutions for the public.
Wallbox is introducing a smart electric vehicle charging system that lets users power their vehicles more efficiently. It helps drivers charge their vehicles at home, providing an easy and convenient solution and avoiding the the hassle of visiting a public charging station.
The company is not a huge enterprise at this stage, but it is growing rapidly. In the last completed fiscal quarter, Wallbox recorded gross margins of 41.4%. It has sold more than 51,000 chargers over the last year, up more than 180% compared to Q1 2021.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.