The electric vehicle market is no longer a futuristic niche that enthusiasts are optimistic about. It is an industry undergoing a massive boom, with its sights set on conquering mainstream road transport. In 2021, US President Joe Biden signed an executive order which laid out a plan for the adoption of zero-emission vehicles in the United States. The goal had been set for 50% of all vehicles sold in the US to be of either the electric or hybrid forms. The timeline to achieve this ambitious goal has been set for 2030. This represents enormous upside potential considering that the present percentage remains close to 3%. The trend is also seen in the sale of proportionate EV charging stock over the years:
US Department of Energy
Investors would likely be eager to be a part of this inevitable boom. However, it is important to note that EV stocks are not the only opportunity for participation in this high-growth domain. In fact, investors can potentially receive higher growth through different class stocks than Electric vehicles. A highly lucrative domain is that of EV Charging Station stocks. In this article, we go into the depth of this promising stock category. We emphasize why you should rush to get an early long position here. Discussed below are the top five EV stocks to consider in one’s investment portfolio.
The first stock we present is the small-cap EV charging infrastructure specialist, Beem Global (NASDAQ: BEEM). With a market capitalization of a mere $133 million, you might be wondering why we propose BEEM in a world of more established, and larger players. Well, the answer lies in the company’s core competitive advantage. Where new players have been rushing in to be a part of the EV charging ecosystem, BEEM offers something unique that its competitors lack.
The company does not offer a ‘one size fits all approach that is presently the industrial standard. In fact, BEEM offers a customization capability to its charging structures. Few players in the market are offering clients the ability to choose what sort of components to include for their charge stations. This would allow BEEM to soar high, as its offering remains highly valuable, and could offer great utility to a number of clients from different industries.
BEEM also has recently announced a contract it had been awarded by the state of California a contract to establish 52 EV charge systems across the facilities of various government agencies. This emphasizes the credibility and competence that is inherent to Beem Global, despite its small size, and being a new entrant within the market.
The second stock on our list is EVGO Inc (NASDAQ: EVGO), which runs one of the most extensive DC fast-charging networks in the United States. The nature of EVGO makes it well-positioned to gain big from the wider trends in the EV market, which has increasingly been capturing greater market share with the passage of time. In addition to its partnership with big brands such as JPMorgan Chase, EVGO is collaborating with ride-sharing giants Uber and Lyft across various dimensions.
Hardly any other US EV charge station company has as vast a network of public access charge points as does EVGO. These are strategically situated across over 30 American states, and cover within a 10-mile radius, a total of 130 million individuals.
As the EV market gains more traction, a star player such as EVGO is likely to soar. It is a company that is powered completely by renewable energy, and hence its highly sustainable given its large scale. For this reason, it reflects stability and longevity that is unparalleled. Even after electric vehicles enter the mainstream, consumer preferences and model upgrades could see individual EV brands rise and fall over time. The charging station infrastructure, however, would be immune to these changing market forces, and would likely be set in stone. As a result, EVGO could well be on its way to leading this market and emerging as a giant by the end of the decade.
Up next, we present the Swiss giant, ABB Limited (NYSE: ABB), which stands as its country’s largest employer. The stock is by no means one that is exclusively that which operates within the EV charge station realm. However, the company has been making progress in the segment and is well on its way to leading the globe in this dynamic area.
ABB has a market capitalization of an incredible $50 billion and was established in 1883. The giant specializes in electrification, automation, robotics, and many other similar areas. Its expertise has made its progress in the EV charge station segment a gamechanger in the wider market. As a result, the company is showing growth faster than that of the EV market itself. The company occupies the number one market position in terms of passenger electric car charging solutions, as well as in eBus and eTruck charging infrastructure. It also leads the market in terms of rail infrastructure electrification and onshore marine electrification.
Unlike most companies in the EV charge station market ABB has been well established for nearly two centuries, and hence has a reliable stream of income pouring in from its other business segments. This gives it a significant edge over other players, as it can spend more on research and development, as well as on marketing. Its global partnerships across the world could also give it a significant market boost. Through this ABB could successfully establish EV charge stations for industrial giants.
The fourth stock on our list is NIO Inc (NYSE: NIO), an electric vehicle company that the market has dubbed “the Chinese Tesla”. In terms of its EV charge station segment, the company faces significant upside potential. This comes despite falling prey to the wider bearish tumble this year. These conditions have brought the stock down over 50% in the last year.
NIO has seen massive success in terms of its charge station segment, given the uniquely innovative approach it takes. Instead of typical charge points, which are presently the industrial norm, the company offers battery swap services. Through this, EV car drivers would drive into a NIO station, and replace their depleted batteries with a fully charged pack. This process is highly efficient in terms of time and has proven highly popular. Over 4 million swaps were conducted by the end of 2022’s first financial quarter.
Given this widespread popularity, NIO plans on having 4000 swap stations across China. These would strategically be placed at “high-usage points”. Through this approach, 90% of NIO customers would have access to a swap station within a radius of 3 miles. Upside potential is further enhanced when considering that the international market remains largely untapped for this innovative concept.
The final stock on our list, but far from being the least is Wallbox NV (NYSE: WBX). Why we are bullish on WBX is due to the sheer growth this multinational charging solutions provider has achieved. Even more impressive is the short time frame it had taken to do so.
WBX is a relatively young company that was founded in 2015 and had gone public in 2021. In its first year of trading as a public entity, the company delivered annual revenue growth of a whopping 165%. This incredible growth could be explained by the company’s unique bi-directional charging concept. This allows users to charge their electric vehicles, and also power their homes. In the case of excess energy, they could even feed back battery power to the grid.
In the spirit of its rapid growth trajectory, Wallbox management has set topline guidance as high as 190%. This is further catalyzed by the management’s commitment to partner up with commercial giants across industries. WBX, which is on its way to achieving rocketing growth, is an investment opportunity simply too good to ignore. What makes this even more attractive is its low price. WBX is presently trading at nearly 35% below its price of 6 months ago, despite the release of excellent fundamentals. This is a stock that is bound to go up. Investors should not miss its discounted price to gain big.
The EV charge station phenomenon represents an exciting opportunity that has remained largely overlooked as of yet. This of course refers to stocks of companies that specialize in electric vehicle charging stations. Here, we argue that getting in early on this phenomenal growth opportunity is the best investment decision anyone can make. We make a strong case for five stocks belonging to the EV charge station category. Each of these offers a stellar growth opportunity. The stocks covered offer immense promise, especially in the wake of the explosive EV penetration into developed markets.