2020 was essentially a watershed moment for electric vehicles (EVs). As sales in the rest of the industry slumped, global EV sales accelerated in 2020. Moreover, it is projected that the sector will grow at a in the next decade. As a result, total EV sales will account for 32% of the total market share of new car sales. Hence, the need for more charging infrastructure is apparent, making EV charging stocks a fascinating investment option with long-term potential.
Therefore, EV chargers are likely to get busier, and station economics will improve over time. The sector will also support the U.S. government, as President Biden’s infrastructure plan contains . The plan covers purchase incentives, infrastructure development, and manufacturing.
There are currently a handful of players in the EV charging space that focus on different niches. A few of them are trading publicly, while a few are in line to be, through merger transactions with shell companies. This article discusses the stocks in this industry with the most potential for sustained growth in the future.
- ChargePoint Holdings (NYSE:CHPT)
- Tortoise Acquisition Corp. II (NYSE:SNPR)
- TPG Pace Beneficial Finance (NYSE:TPGY)
EV Charging Stocks: ChargePoint Holdings (CHPT)
ChargePoint Holdings is the top EV charging station company in the United States, with over 135,000 charging ports. It recently closed out its SPAC merger with Switchback Energy in a . CHPT stock is incredibly positioned to generate massive revenues and robust earnings regardless of which EV rules the roost. Additionally, its rising market share in Europe is simply the icing on the cake.
ChargePoint recently released its results for the fiscal year 2020, where . Revenues came in slightly higher than its 2019 figure of $144.5 million, which is staggering, based on how the pandemic reduced car usage by roughly 80%. Moreover, it projects its revenues to exceed $200 million in 2021, which appears to be just the beginning. ChargePoint will remain the frontrunner in the charging space as the EV revolution gains speed.
EV Charging Stocks: Tortoise Acquisition Corp. II (SNPR)
Shell company Tortoise Acquisition Corp. II will merge with up-and-coming EV charging company Volta sometime this year. The transaction carries an
and will provide to Volta. The combined company has the potential to stand out from the crowd with its unique business model and robust expansion strategy.
Volta offers a unique “fremium charging” model whereby it makes money by selling advertising on its charger screens. Its chargers are , where advertisers can showcase their products to the EV owners. So far, its strategy has paid dividends, as it’s among the most used EV charging stations in the country.
Moreover, it plans to grow its charging stations from . Additionally, it also expects its revenue per site to increase at a CAGR of 41% in the next decade. On top of that, it also plans to expand its business internationally with its business model. Moreover, you can grab SNPR stock for dirt cheap.
EV Charging Stocks: TPG Pace Beneficial Finance (TPGY)
TPG Pace Beneficial Finance is another blank check company with an EV charging operator. The operator in question is EVbox, which is Europe’s largest charging solutions provider. So far, it has shipped an impressive . It offers the widest variety of products and solutions in the EV charging realm, with unique software that offers useful data analytics. Additionally, TPGY is one of the most attractively valued stocks in the sector.
Looking ahead, EVbox forecasts its revenues to rise from to about €225million in 2023. Moreover, it expects robust growth in revenues through its diversification strategies. It is actively expanding in the U.S. and has partnered with company Engie to facilitate its entry into other markets. Additionally, it plans to increase its margins by introducing additional services like mobile software to add more value to its products.
On the date of publication, Muslim 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
