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EV Infrastructure Investment Opportunities: What Investors Need to Know
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The electrification of transportation has been gaining momentum in recent years and it’s no secret that electric vehicles (EVs) are becoming more popular than ever. The International Energy Agency predicts that the number of electric cars on the road could reach more than 300 million by 2030, up from just 16.5 million in 2021.
What’s often overlooked is the crucial role that infrastructure plays in the EV revolution. Without adequate EV infrastructure, the growth of the EV market could be hindered. That’s why many investors are now turning their attention to EV infrastructure investment opportunities.
Investment in EV infrastructure is expected to grow significantly in the coming years. According to a report by Precedence Research, the global EV charging infrastructure market size was valued at $25.56 billion in 2022 and is expected to reach $229.1 billion by 2030, witnessing a CAGR of 31% from 2023 to 2030. This growth is largely driven by the increasing adoption of EVs, government incentives and the need for charging infrastructure.
Play EV Infrastructure Growth With These Stocks
There are several investment opportunities for investors looking to capitalize on the growth of EV infrastructure. One way could be to invest in companies that manufacture and sell EV charging equipment. These companies are poised to benefit from the growth in EV adoption and the need for more charging stations. Stocks like Blink Charging (BLNK - Free Report) and ChargePoint Holdings (CHPT - Free Report) fit the bill.
Blink Charging is a leading provider of EV charging equipment. The company offers a wide range of charging solutions, including Level 2 and DC fast charging stations. The company also recently announced a partnership with EnerSys, a global provider of stored energy solutions, to develop and manufacture high-powered charging systems.SemaConnect buyout enables Blink to gain full control over its supply chain, making it the only EV charging firm providing 100% vertical integration. The firm’s new product offerings, including Vision, EQ 200, Series 3, PQ 150, and 30kW DC Fast Charger are likely to drive the company’s growth. BLNK currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the company’s 2023 revenues implies a year-over-year growth of 66%.
ChargePoint is another leading provider of EV charging solutions. The company offers a comprehensive suite of charging solutions for both commercial and residential customers. This charging company is the market leader in North America in commercial Level 2 AC chargers. It is also actively focusing on expansion into European markets. Currently, ChargePoint has more than 225,000 activated charging ports. The launch of CP6000, ChargePoint’s AC EV charging solution, is boosting CHPT’s prospects. Acquisitions of has·to·be and Viriciti have accelerated CHPT’s position in the EV charging ecosystem. ChargePoint has delivered more than 158 million charging sessions so far. CHPT currently carries a Zacks Rank #3. The Zacks Consensus Estimate for CHPT’s current fiscal revenues implies a year-over-year growth of 52%.
Another investment opportunity in the EV infrastructure space is to invest in companies that provide EV charging services. These companies operate networks of charging stations and generate revenues through subscription fees or pay-per-use charges. EV king Tesla (TSLA - Free Report) is one such company.
While Tesla is best known for its EVs, the company also operates a network of charging stations known as the Tesla Supercharger network. The network includes over 40,000 charging stalls worldwide and has become a crucial part of Tesla’s EV ecosystem. Superchargers can add up to 322 miles of range in just 15 minutes. The company currently carries a Zacks Rank #3. The Zacks Consensus Estimate for TSLA’s 2023 revenues implies a year-over-year growth of 25%.
Investors can also consider investing in companies that provide EV-related infrastructure, such as battery manufacturers and renewable energy companies. Renewable energy sources such as solar and wind power are crucial for powering EVs and reducing carbon emissions. These companies are key players in the EV ecosystem and are poised to benefit from the growth of the EV market. In this context, stocks like Albemarle Corporation (ALB - Free Report) and First Solar (FSLR - Free Report) could also help you capitalize on the EV infrastructure market.
Albemarle is a global leader in the production of lithium, a key component in EV batteries. The company is well-positioned to benefit from the growth of the EV market, as demand for lithium is expected to increase significantly in the coming years. The company’s Talison joint venture (49%) in Australia, La Negra projects, JV with Mineral Resources and acquisition of the Qinzhou plant in China should fuel the company’s Albemarle’s lithium business. ALB currently carries a Zacks Rank #3. The Zacks Consensus Estimate for ALB’s 2023 revenues implies a year-over-year growth of 61.1%.
First Solar is a leading manufacturer of solar panels and a provider of solar energy solutions. The company’s thin-film solar panels are highly efficient and cost-effective, making them an attractive option for both commercial and residential customers. First Solar is likely to maintain its position as a leading manufacturer of solar modules and may continue to witness strong demand for the same, going forward. This is expected to bolster its revenue generation prospects. First Solar anticipates that its expansion strategy should enable the company to boost its manufacturing capacity by approximately 11 GW by 2025. First Solar currently carries a Zacks Rank #3. The Zacks Consensus Estimate for FSLR’s 2023 revenues implies a year-over-year growth of 34.4%.
Bottom Line
The EV market is growing rapidly, leading to significant investment opportunities in the EV infrastructure space. As countries around the world aim to reduce carbon emissions, demand for green cars and the necessary infrastructure to support them is set to soar. So, if you want to bet on the greener mode of transportation but are concerned about the lofty valuations of pure-play EVs, you can benefit from investing in companies involved in EV charging equipment, EV charging services, battery manufacturing and renewable energy.
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EV Infrastructure Investment Opportunities: What Investors Need to Know
The electrification of transportation has been gaining momentum in recent years and it’s no secret that electric vehicles (EVs) are becoming more popular than ever. The International Energy Agency predicts that the number of electric cars on the road could reach more than 300 million by 2030, up from just 16.5 million in 2021.
What’s often overlooked is the crucial role that infrastructure plays in the EV revolution. Without adequate EV infrastructure, the growth of the EV market could be hindered. That’s why many investors are now turning their attention to EV infrastructure investment opportunities.
Investment in EV infrastructure is expected to grow significantly in the coming years. According to a report by Precedence Research, the global EV charging infrastructure market size was valued at $25.56 billion in 2022 and is expected to reach $229.1 billion by 2030, witnessing a CAGR of 31% from 2023 to 2030. This growth is largely driven by the increasing adoption of EVs, government incentives and the need for charging infrastructure.
Play EV Infrastructure Growth With These Stocks
There are several investment opportunities for investors looking to capitalize on the growth of EV infrastructure. One way could be to invest in companies that manufacture and sell EV charging equipment. These companies are poised to benefit from the growth in EV adoption and the need for more charging stations. Stocks like Blink Charging (BLNK - Free Report) and ChargePoint Holdings (CHPT - Free Report) fit the bill.
Blink Charging is a leading provider of EV charging equipment. The company offers a wide range of charging solutions, including Level 2 and DC fast charging stations. The company also recently announced a partnership with EnerSys, a global provider of stored energy solutions, to develop and manufacture high-powered charging systems.SemaConnect buyout enables Blink to gain full control over its supply chain, making it the only EV charging firm providing 100% vertical integration. The firm’s new product offerings, including Vision, EQ 200, Series 3, PQ 150, and 30kW DC Fast Charger are likely to drive the company’s growth. BLNK currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the company’s 2023 revenues implies a year-over-year growth of 66%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ChargePoint is another leading provider of EV charging solutions. The company offers a comprehensive suite of charging solutions for both commercial and residential customers. This charging company is the market leader in North America in commercial Level 2 AC chargers. It is also actively focusing on expansion into European markets. Currently, ChargePoint has more than 225,000 activated charging ports. The launch of CP6000, ChargePoint’s AC EV charging solution, is boosting CHPT’s prospects. Acquisitions of has·to·be and Viriciti have accelerated CHPT’s position in the EV charging ecosystem. ChargePoint has delivered more than 158 million charging sessions so far. CHPT currently carries a Zacks Rank #3. The Zacks Consensus Estimate for CHPT’s current fiscal revenues implies a year-over-year growth of 52%.
Another investment opportunity in the EV infrastructure space is to invest in companies that provide EV charging services. These companies operate networks of charging stations and generate revenues through subscription fees or pay-per-use charges. EV king Tesla (TSLA - Free Report) is one such company.
While Tesla is best known for its EVs, the company also operates a network of charging stations known as the Tesla Supercharger network. The network includes over 40,000 charging stalls worldwide and has become a crucial part of Tesla’s EV ecosystem. Superchargers can add up to 322 miles of range in just 15 minutes. The company currently carries a Zacks Rank #3. The Zacks Consensus Estimate for TSLA’s 2023 revenues implies a year-over-year growth of 25%.
Investors can also consider investing in companies that provide EV-related infrastructure, such as battery manufacturers and renewable energy companies. Renewable energy sources such as solar and wind power are crucial for powering EVs and reducing carbon emissions. These companies are key players in the EV ecosystem and are poised to benefit from the growth of the EV market. In this context, stocks like Albemarle Corporation (ALB - Free Report) and First Solar (FSLR - Free Report) could also help you capitalize on the EV infrastructure market.
Albemarle is a global leader in the production of lithium, a key component in EV batteries. The company is well-positioned to benefit from the growth of the EV market, as demand for lithium is expected to increase significantly in the coming years. The company’s Talison joint venture (49%) in Australia, La Negra projects, JV with Mineral Resources and acquisition of the Qinzhou plant in China should fuel the company’s Albemarle’s lithium business. ALB currently carries a Zacks Rank #3. The Zacks Consensus Estimate for ALB’s 2023 revenues implies a year-over-year growth of 61.1%.
First Solar is a leading manufacturer of solar panels and a provider of solar energy solutions. The company’s thin-film solar panels are highly efficient and cost-effective, making them an attractive option for both commercial and residential customers. First Solar is likely to maintain its position as a leading manufacturer of solar modules and may continue to witness strong demand for the same, going forward. This is expected to bolster its revenue generation prospects. First Solar anticipates that its expansion strategy should enable the company to boost its manufacturing capacity by approximately 11 GW by 2025. First Solar currently carries a Zacks Rank #3. The Zacks Consensus Estimate for FSLR’s 2023 revenues implies a year-over-year growth of 34.4%.
Bottom Line
The EV market is growing rapidly, leading to significant investment opportunities in the EV infrastructure space. As countries around the world aim to reduce carbon emissions, demand for green cars and the necessary infrastructure to support them is set to soar. So, if you want to bet on the greener mode of transportation but are concerned about the lofty valuations of pure-play EVs, you can benefit from investing in companies involved in EV charging equipment, EV charging services, battery manufacturing and renewable energy.