Finding the Supercharged EV Stocks to Power Up Your Portfolio

  • The EV market will grow by around 3X to 4X over the next decade. But the EV charging market will grow by 12X over that same stretch.
  • There are two classifications of AC electric vehicle chargers – L1 (slow and affordable) and L2 (fast and expensive).
  • Millions of L2 chargers will pop up across every parking lot in urban and suburban America, while DC fast-chargers will replace gas stations on interstate highways.
  • With the increasing partnerships between major enterprises and EV charging companies, the EV charging industry is “powering up” right now in a way that it’s never done before.
An image of a white EV plugged in, charging
Source: aanbetta / Shutterstock

[Editor’s note: This story was previously published in August 2022. It has since been updated to include the most relevant information available.]

I’ll get right to it. To put yourself in a position to potentially make fortunes over the next year, buy electric vehicle stocks today!

The logic is pretty straightforward.

It looks like we’re in the early stages of a bear-to-bull market transition. Stocks have retraced more than 50% of their losses in just two months. Inflation is falling, and the economy still hasn’t plunged into a deep recession. Historically speaking, what comes next is a bull market breakout.

In these breakout periods, stocks soar. Specifically, early-stage hypergrowth stocks soar. Every time we go from a bear to bull market, over two dozen stocks rise 1,000%-plus over the next year.

This time around, the early-stage hypergrowth stocks most likely to soar 1,000% are EV stocks.

Indeed, with sky-high gas prices, a significant increase in electric car supply and optionality, and the newly-passed ~$400 BILLION climate bill, the stage is set for the Great EV Revolution to meaningfully accelerate over the next 12 months.

We wouldn’t be surprised if a handful of EV stock soar more than 10X in the coming year.

Now, not all will soar. But a few will mint small fortunes for their investors. And at the top of our list of potential big-time winners are EV charging stocks.

Here’s why.

The Case for EV Charging Stocks

Let me ask you a question: What good is an EV without charge?

No good at all – it’s pretty much useless. And that, folks, is the basis for why you should invest in EV charging stocks. They are necessary to the mass deployment of EVs.

Here are the numbers.

Currently, there are about 130,000 EV charging ports across the U.S. That may seem like a big number, but we’ll need a lot more if everyone’s going to be driving an electric vehicle by 2030.

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.

Total confirmed cases of Monkeypox

Said differently, the EV charging market is going to explode in size over the next decade. As it does, it will lay the foundation for the whole EV market to explode in size.

That’s why we’re excited about buying EV stocks here and now. They’ve been beaten up alongside every other stock in the market. But, unlike every other stock in the market, EV stocks are on the cusp of generational hypergrowth in the coming years.

Time to buy the dip? We think so.

Gaining an Edge in EV Charging

Considering what you just read, you’re probably thinking that it’s time to rush out and load up on some EV charging stocks, right?

Not so fast.

There are lots of EV charging companies out there today. Not all will make it. Indeed, only a handful will make it big. Most will fail. So, it’s important to make the distinction to buy the best EV charging stocks.

To know which are “the best,” we need to first understand EV charging technology.

That analysis starts with one fundamental question: How does electricity work?

In short, we generate energy at a power source, like a coal-fired power plant or a solar farm. Then, we promote the flow of electrons (charged particles that carry electric power) from that power source to the rest of the world via wires. This flow of electrons is called a “current.”

That current can take two forms: alternating current (AC) or direct current (DC). DC is a direct constant flow of electrons through the wire. It results in heavy power delivery but also in significant drain on the grid. AC is an oscillating flow of electrons that results in lower power delivery but a much more manageable load on the grid.

Since the grid has always been load-constrained, society decided long ago to build it on AC. But today’s batteries can only store power as DC. Indeed, AC is physically impossible to store.

That’s why most consumer electronics devices – like laptops – come with power cords with big “boxes” in the middle of them. Those boxes are AC/DC converters, which convert the AC power from the grid to DC power that can be stored in your laptop.

The Role of Front-End AC/DC Converters in Hybrid AC/DC Smart Homes

EV charging works in much the same way.

EV chargers plug into the grid, which provides AC power. That AC power is then pumped into the EV. On board every EV, there is an AC/DC converter that transforms the AC power from the charger into usable DC power, which is then stored in the car’s battery.

Simple enough, right?

How to Pick the Best EV Charging Stocks

Understanding how EV charging works isn’t all you need to know to pick the best EV charging stocks. You also need to know the different types of EV chargers out there so that you can pick the companies that make the most useful and highest-quality products.

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. Bu 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, there are also DC fast chargers. These are fundamentally distinct from AC chargers. They have built-in AC/DC converters, which convert AC power from the grid into DC power within the actual charger itself. What this enables, then, is for the charger to pump DC power directly into an EV battery, completely bypassing the AC/DC converter in the car and, therefore, resulting in a far more powerful charge.

These chargers are really fast — and really expensive. As a result, they can give you over 100 miles of EV range per hour of charging. But there aren’t many of them on the roads these days — a few thousand across the whole U.S.

Power flow of level-1 and level-2 charging systems
Source: https://circuitdigest.com/

Considering this context, it’s important to understand that 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.

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.

For those long road trips… well, that’s where DC fast chargers will be super useful.

DC fast-charging infrastructure shown across U.S. map
Source: Department of Transportation

Oh, and charging costs money… about $2 per 30 minutes of L2 charging in a public lot. To that end, the future of EV charging is super clear. Millions of L2 chargers will pop up across every parking lot in urban and suburban America, while DC fast-chargers will replace gas stations on interstate highways. And consumers will foot the bill for all of it.

That’s the future.

So… which EV stocks should you be buying right now to play that future?

The EV Charging Boom Has Arrived

We’ve followed the electric vehicle space closely over the past seven years. In that time, we’ve seen a lot. But we’ve never seen what we’re seeing right now.

The EV charging industry is “powering up” — no pun intended — right now in a way that it’s never done before.

Last week, Tesla (TSLA) announced that it’s doubling the size of its Supercharger design team in Canada as it looks to rapidly expand its charging network in that country.

A month ago, General Motors (GM) partnered with EV charging network operator EVgo (EVGO) to build 2,000 EV chargers at 500 Pilot’s locations across the U.S.

Over the past few months, Los Angeles International Airport has commenced the construction of 1,300 EV charging stations across its facilities.

Two weeks ago, IKEA announced that it will be installing more than 140 EV chargers at over 25 of its U.S. locations.

The U.K. government just pledged 20 million pounds to build 1,000 EV chargers across its country. And the U.S. government just passed an elephant-sized climate bill which includes nearly $2 billion in incentives for EV charger construction.

The writing is on the wall. The EV charging industry is on fire right now. So begins a decade of hypergrowth ahead for EV charging station operators.  

The Final Word

At Hypergrowth Investing, we leverage a team of technology stock experts – including software engineers, data scientists, seasoned traders, and economists – to understand technological megatrends at their most fundamental level. We don’t just listen to management teams and read investor decks. We break down every company’s underlying technology at its most elementary level to assess its validity and capability – and its potential to change the world.

And we do this across every industry, for every technological breakthrough, and with every company. The end result? We identify early-stage hypergrowth tech stocks set for enormous long-term returns.

And… in the EV industry… we’ve found one stock that has developed astoundingly superior and creatively unique technology which should enable it to become a dominant tech supplier for the whole EV industry.

The best part? The company may have a secret partnership with Apple (AAPL) in the works since Apple is – as you may know – on the cusp of launching an iPhone-like autonomous electric car.

From current levels, this stock is a potential 40X investment opportunity. Find out how it could be the key company behind Apple’s next big product launch.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/hypergrowthinvesting/2022/08/its-time-to-pounce-on-ev-charging-stocks/.

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