These Electric Vehicle Charging Stocks Are Poised To Bring Significant Gains
With automakers pushing for electrification at an unprecedented pace, enthusiasm in EV charging stocks makes perfect sense. One way of looking at this new space is that they are the next-generation gas stations in the making. Thus, buying top EV charging stocks today could potentially be the same as buying Chevron (NYSE: CVX) or Exxon Mobil (NYSE: XOM) a few decades back. And that seems to make a lot of sense.
Of course, there is no denying that a lot of hype is going on in the sector. There have also been a lot of EV start-ups coming into the stock market through special purpose acquisition companies (SPACs). Perhaps you have been investing in SPAC stocks. And with the recent downturn, you might not even want to go anywhere near them. I get that, SPACs may not exactly have a good rep. But with proper research and due diligence, these investments could be highly lucrative in the long run.
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. EV charging stocks could become even more attractive to Wall Street under the current administration, which has made climate change a priority.
President Joe 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. With all these in mind, let’s take a look at 4 of the top EV charging stocks in the stock market today.
Best EV Charging Stocks To Watch Right Now
- TPG Pace Beneficial Financial Corp (NYSE: TPGY)
- ChargePoint Holdings Inc. (NYSE: CHPT)
- Blink Charging Co. (NASDAQ: BLNK)
- Tortoise Acquisition II (NYSE: SNPR)
EVBox- TPG Pace Beneficial Financial Corp.
With the European Union’s rapid transition toward electrification, EVBox’s huge presence in the continent makes it a bullish case for TPGY stock. As the name suggests, TPG Pace Beneficial Financial Corp is a SPAC. And it is slated to merge with EVBox. According to CleanTechnica, EVBox has the largest installed base of EV charging stations in Europe.
Now, considering the EU is taking steps to launch more subsidies for EV chargers, would buying TPGY stock at this level be attractive? After peaking at around $34 per share at the beginning of February, TPGY stock has shedded more than 50% of its value and last traded at $14.39. This made the company’s valuation more attractive compared to its industry peers.
If you look not too far east, you would know Europe is leading the EV revolution. And betting on TPGY stock ahead of its merger with EVBox is increasingly attractive amid the low valuation. It’s worth pointing out that some European countries have high EV penetration rates, with numbers exceeding 50% in countries like Norway and Iceland. Meanwhile, in the U.S., we only have a penetration of around 5%. With almost every European country committing to rigorous and strict decarbonization goals, would you bet on TPGY stock ahead of its merger?
Next up, we have another EV charging stock, ChargePoint Holdings. It is an EV infrastructure company that operates one of the largest networks of EV charging stations in the U.S. The company is the first EV charging stock to have gone public via the SPAC route. This came after the completion of its merger with Switchback Energy Acquisition. CHPT stock investors have been on a wild ride in recent months. The company’s stock price hit an all-time high near $50 before correcting to its current level of $22.27. Similar to other top EV charging stocks in the market, CHPT stock today trades at a more attractive valuation than where it was a few months back.
Despite the correction in share price, nothing has really changed fundamentally for the company. With over 90 million charges delivered, the company continues to expand its vertical by providing its solution to large fleets and businesses. Along with many clean energy stocks benefitting from Biden’s infrastructure plan, is it safe to say there’s more room to run for CHPT stock? With the White House reiterating its plan to build more than 500,000 EV chargers over the next decade, would buying CHPT stock now be a great idea considering it commands a huge market share in the country?
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Coming up next, Blink Charging is probably the most volatile EV charging stock we have on this list. Although its scale is only a fraction of ChargePoint or EVBox, BLNK stock is probably the one that traders and investors love the most. That’s if you bought during the first half of 2020. BLNK stock has since risen nearly 2,000% over the past year. And if not because of the recent stock market correction, investors could be seeing gains of more than 3,000%. Given that its stock price is trading at astronomical levels, it should come as no surprise that BLNK stock is one of the most heavily shorted stocks in the stock market today.
Investors are really valuing the company based on the growth story we tell ourselves. With that being said, BLNK stock is still worth considering on dips. No matter how we slice it, this is a growing industry and it is likely to see healthy growth in the coming decades. The stock price might have overheated a little, but there is a good chance that its top line can catch up. With the adoption of electric vehicles accelerating at an unprecedented rate, it certainly presents an opportunity for companies like Blink. With that in mind, will you consider adding BLNK stock to your portfolio?
Volta-Tortoise Acquisition II
Last but not least is Tortoise Acquisition II Corp. The SPAC will soon merge with Volta Industries. For those who may be unfamiliar, Volta develops, manufactures, and installs a network of EV charging stations. The company may not be as well-known as EVBox in Europe or ChargePoint in the U.S. But this dark horse could be the stronger investment opportunity here. Potential is just that, but what’s more important when buying a growth stock like SNPR stock is getting in at a good entry point.
Since the announcement of the Volta deal, SNPR stock reached a high of $18.33. However, it has given back all of its gains and last traded at $10.01. You may be asking, what’s so special with SNPR stock? After all, EV charging companies are all placing charging stations at public properties. In particular, Volta’s charging stations come with screens for advertising. With this approach, the company could also become highly profitable even when they place fewer charging stations than its competitors. Now, with a palatable valuation and innovative business model, would you consider buying SNPR stock right now?