As electric vehicle (EV) manufacturers race to get models off the production line and into consumers’ driveways, there is a similar race taking place with EV charging infrastructure. The electric vehicle charging infrastructure market is expected to grow at a 29% compound annual rate, hitting $24 billion by 2030. That makes this a good time to look for EV charging stocks to buy.
Where you live may affect how you feel about the state of electric vehicle charging infrastructure. I’m sure that many urban consumers have plentiful public charging options. But much like the rollout of 5G, if you live in a small town or rural area, you probably don’t have an abundance of public charging stations.
However, that’s changing fast. According to Electrek, “The number of charging ports increased more in 2022 than in the preceding three years combined.”
Not surprisingly, analysts are forecasting that many EV charging stocks may deliver gains of over 100% in the next 12 months. This story is still playing out and there is likely to be more volatility along the way. But if you are looking to park some cash in speculative investments, here are three EV charging stocks to buy for outsized gains.
Tesla (TSLA)
As many investors understand, Tesla (NASDAQ:TSLA) is far more than a car company. In addition to producing EVs, it also manufactures the rechargeable batteries that go in those cars and does all of its software programming in-house. Furthermore, it has created a fast charging network with more than 45,000 Superchargers to ensure its customers can get the necessary juice to power their vehicles.
However, it’s not just Teslas that can use the company’s Superchargers. The company has opened up its network to other EV manufacturers. General Motors (NYSE:GM) and Ford (NYSE:F) both said recently that they planned to make their EVs compatible with Tesla chargers. This creates another revenue stream for the company that could help improve its margins and offer lower charging prices to customers. It’s a win-win.
The case for Tesla being one of the millionaire-maker EV charging stocks might have been easier to make five years ago when it was around $23 a share. Today, it is trading at more than 10 times that.
However, Tesla will be at the center of everything that happens in the EV ecosystem for years to come. And that makes me believe there are likely more millionaires to be made from TSLA stock.
Beam Global (BEEM)
For many investors, finding millionaire-maker stocks means looking for inexpensive stocks with a lot of upside potential. Beam Global (NASDAQ:BEEM) fits that description. This is particularly true if, like me, you are intrigued by companies that offer a unique solution to a problem.
In the case of Beam Global, the company provides patented and proprietary solar charging solutions for EVs. Beam doesn’t compete with companies like ChargePoint (NYSE:CHPT). Instead, it provides an off-grid infrastructure solution that can support any company’s EV-charging equipment.
The company says its solutions are the fastest deployed and most scalable in the world. One reason for this is that its plug-and-play solutions require no construction, electrical work, regulatory approvals or grid connections.
Revenue growth has accelerated in the past two years, but Beam is not yet profitable. With ambitious expansion plans, positive earnings may be some time away.
In June, the company announced a $22.5 million public stock offering. If you believe this will solve the cash burn issue for some time, then this may be the time to buy.
Wallbox (WBX)
There are inexpensive stocks and then there are penny stocks. And Wallbox (NYSE:WBX) is in the latter category. Penny stocks carry substantial risk but also the possibility for huge rewards.
So why should investors consider WBX as one of the best EV charging stocks to buy? One of the key obstacles in EV charging is interoperability. Wallbox helps address this with its network of smart charging stations. According to the company, its chargers are compatible with every EV on the market.
Wallbox recently announced that it had sold more than 1,ooo of its Supernova DC fast chargers. That’s an impressive milestone when you consider the company just introduced the chargers last year.
Another compelling benefit for investors is the company’s impressive revenue growth forecast, with analysts calling for 115% growth this year.
On the date of publication, Chris Markoch 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.
