Electric vehicle stocks have been one of the hottest investments on the stock market in 2020. When everyone has been rushing to buy Tesla (NASDAQ: TSLA) and Nio (NYSE: NIO) to ride on such a major trend, you know you have to strike while the iron is red-hot. And instead of trying to pick which EV stocks to buy, the EV charging stocks could be the one to benefit the most. The idea here is pretty straightforward. No charging stations, no EVs on the road.
No matter how you slice it, as long as electric vehicle sales grow, these companies will continue to thrive. Considering we are just at the start of the EV revolution, these EV charging stocks could be a huge bargain if you are investing for the long-term. If you are still wondering if EV is going to be the future, then you might want to take a closer look at what the traditional automakers are doing right now. For instance, Ford (NYSE: F) and General Motors (NYSE: GM) are also rushing to the EV space.The Biden Administration Is One Major Catalyst For These EV Stocks
EV charging stocks could become even more attractive to Wall Street under the new President, which has made climate change a priority of his administration. Biden has promised $400 billion in public investment in clean energy, including battery tech and EV. Part of that plan includes 500,000 new EV charging outlets throughout the 2020s.
“The federal government also owns an enormous fleet of vehicles, which we’re going to replace with clean electric vehicles made right here in America, by American workers,” – President Joe Biden
According to the U.S. Department of Energy, the U.S. currently has less than 29,000 public EV chargers. That is a far cry from the 136,000 gas stations we have, according to fuel data company GasBuddy. Therefore, the EV charging network has a big gap to fill. Now, let’s say you truly think that EVs are definitely the future. If so, do you have these top EV charging stocks to buy on your list today?
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For the past year, BLNK stocks have skyrocketed more than 2,000%, which gives it a valuation of $1.9 billion. And if you have been a follower of StockMarket.com, you may know that since we covered BLNK stock back in June, the stock price has gone up by over 2,500%. It may be even harder to believe that the stock was only trading around $1.30 earlier last year. Blink Charging operates a network of nearly 15,000 electric vehicle charging stations as of December 31, according to the company. With the rise in the adoption of EVs, it is no surprise that the company has been benefiting. In its third-quarter earnings report, Blink saw product sales rising 74% from the same quarter a year ago.
“Whether it’s at a multifamily residential facility, single-family home, retail market, hotel, or if you’re driving along a highway and need to supercharge, we’ll have a solution for you as well….Our model is very simple,” – Michael Farkas, Chief Executive of Blink Charging
While Blink has a relatively simple business model, its shares are now trading at an astronomical level. Investors are really valuing the company based on the growth story we tell ourselves. With the latest news of Biden wanting to replace all government vehicles with EVs, we know how serious the President is in combating climate change. Blink Charging has to expand its charger network to continue charging up its stock price. Whether such a rally is sustainable will depend on how fast the company can install its chargers across the U.S. Unlike most of the other EV stocks, with Blink, you don’t have to bet on brand names or consumer taste. After all, EV users need charging stations whichever make and model they drive. With that in mind, is BLNK stock the best bet on the secular EV trend?ChargePoint (SwitchBack Energy)
Switchback Energy is one EV special purpose acquisition company (SPAC) that has been skyrocketing along with other EV-related stocks. For investors who come across this company for the first time, here’s what to know. Switchback Energy plans to complete its merger with ChargePoint early this year.
Similar to Blink Charging, ChargePoint was founded in 2007 and has been expanding ever since. ChargePoint is currently operating the largest EV charging network in the U.S. and is expanding in Europe as well. These make it a top EV charging stock that is worth a closer look. From a fundamentals perspective, ChargePoint’s business should be strong as the U.S. is clearly adopting EVs quickly.
The strong growth of EVs will undoubtedly result in strong demand for charging stations. Therefore, the company is well-positioned to benefit from such a shift.
In today’s EV gold rush, ChargePoint is selling shovels. That is to say, no matter who ultimately dominates the EV space, someone needs to provide the infrastructure that will keep millions of vehicles powered. Who knows, that someone could be ChargePoint. With ChargePoint’s leadership position and the funds it will obtain from the merger deal, would you say SBE stock is a steal right now?EVBox (TPG Pace Beneficial Finance Corp.)
Blink Charging may be trying to compete neck-to-neck with ChargePoint in the U.S. market, but EVBox is relatively unrivaled as it is the most dominant EV charging station operator in Europe. And commanding such a huge market share is a major advantage for the company. If you look not too far east, you would know Europe is leading the EV revolution. That’s besides China, of course. Now, EVBox is about to go public via a merger with the SPAC TPG Pace Beneficial Finance Corp.
With so much hype going around the EV space, sometimes it’s easy to think that EVs have a huge market share in the U.S. But the truth is, we are only having a mere 5% penetration while some European countries like Norway and Iceland are up above 50% penetration. Practically every European country is committing to rigorous and strict decarbonization goals. Therefore, the growth runway in Europe’s EV market is lengthy indeed.
With its experience as the leader in Europe, EVBox may be in a good position to flex its muscles in the relatively nascent North American market. The company saw impressive growth in recent years, with revenue more than quadrupling from 2017 to 2019. Of course, stocks like these don’t come cheap. The company has a valuation of about 14x projected 2022 revenue of EUR 225 million. While that is not cheap, would you say that TPGY stock can grow into the valuation?