In this article, we discuss the 10 best EV charging stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to 5 Best EV Charging Stocks to Buy Now.
Several EV charging stocks surged in mid-November following the signing of the trillion-dollar bipartisan infrastructure spending into law. President Joe Biden has allocated $7.5 billion to the development of 500,000 public electric vehicle charging stations. According to the Department of Energy’s estimates, 11,407 public EV charging stations will need to be installed each quarter for the next nine years to achieve the government’s target by 2030. The investment is expected to create more manufacturing jobs in the US over the next few years, as well as accelerate EV adoption.
Another catalyst fueling the growth of EV charging stocks is the tax incentives offered by the government. Rebates and incentives are credited to new EV buyers under the second component of the bipartisan infrastructure law known as Build Back Better Framework. Following the footsteps of the EV giant Tesla, Inc. (NASDAQ:TSLA), other EV manufacturers like General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and NIO Inc. (NYSE:NIO) are developing and installing public charging stations nationwide.
The market for electric vehicle chargers was valued at $3.8 billion in 2019. According to a report, the industry will grow at a CAGR of 26.8% to $25.5 billion by 2027. This is mainly driven by government initiatives and EV charging companies entering the market to develop more efficient chargers.
Our Methodology
We selected these EV charging stocks based on their fundamentals and growth prospects. These are the companies that build and market residential and commercial charging networks and operate in the EV space.
The hedge fund sentiment around each stock was gauged using the data of 867 hedge funds tracked by Insider Monkey in Q3 2021.
With this context in mind, here’s our list of the 10 best EV charging stocks to buy now.
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Best EV Charging Stocks to Buy Now
10. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: N/A
Rivian Automotive, Inc. (NASDAQ:RIVN) is an Amazon-backed EV manufacturer that is based in California. The EV newcomer manufactures SUVs and pickup trucks. The electric vehicle company went public in early November, raising nearly $80 billion in total valuation, making it one of the largest IPOs in history.
Rivian Automotive, Inc. (NASDAQ:RIVN) is developing a network of its own fast chargers just like Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and NIO Inc. (NYSE:NIO). The company targets to install 3,500 fast chargers and 10,000 Level 2 chargers in North America by 2023.
9. Beam Global (NASDAQ:BEEM)
Number of Hedge Fund Holders: 4
Beam Global (NASDAQ:BEEM) is a cleantech company that offers EV charging infrastructure. The company’s charging products are powered entirely by renewable energy. Some of the company’s commercial clients include AbbVie Inc., Alphabet Inc., Johnson & Johnson, and Pfizer Inc. The company also had contracts with NASA and U.S. Marine Corps.
The company’s revenue in the third quarter grew 63% to $2.02 million, up from $1.24 million in Q3 2020. Shares of Beam Global (NASDAQ:BEEM) jumped 12% in the past six months.
Intrinsic Edge Capital and Arosa Capital Management are two of the biggest stakeholders of Beam Global (NASDAQ:BEEM) as of the end of the third quarter, according to the data tracked by Insider Monkey. Overall, 4 funds were bullish on Beam Global (NASDAQ:BEEM) by the end of the September quarter, compared to 5 in the previous quarter.
8. Blink Charging Co. (NASDAQ:BLNK)
Number of Hedge Fund Holders: 6
With over 30,000 charging stations in 13 countries, Blink Charging Co. (NASDAQ:BLNK) is one of the largest public EV charging network providers in the world. In the third quarter, the company deployed 3,016 EV charging stations, up 351% from last year.
H.C. Wainwright recently upgraded Blink Charging (NASDAQ:BLNK) from Neutral. The firm set a price target of $50 for the stock.
Shares of Blink Charging Co. (NASDAQ:BLNK) climbed 38% in the past twelve months.
Paloma Partners, a Connecticut-based investment firm, is the largest shareholder in Blink Charging Co. (NASDAQ:BLNK), with approximately 79,041 shares worth $2.26 million.
Of the 867 elite funds tracked by Insider Monkey, 6 were long Blink Charging Co. (NASDAQ:BLNK) at the end of the third quarter, compared to 7 in the June quarter.
Investors are watching EV players like Blink Charging Co. (NASDAQ:BLNK) together with Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and NIO Inc. (NYSE:NIO).
7. Volta Inc. (NYSE:VLTA)
Number of Hedge Fund Holders: 17
Volta Inc. (NYSE:VLTA) has caught investors’ attention with its business model. The company sells EV charging networks and offers digital ad screens for advertisers.
The media segment generates a sizable portion of revenue for EV charging company. The Behavior and Commerce segment accounted for $7.36 billion of the company’s total revenue in the third quarter of 2021. Volta Inc.’s (NYSE:VLTA) overall sales were $8.5 billion, a 77% increase from the previous year.
In October, DA Davidson analyst Matt Summerville initiated a Buy rating on Volta Inc. (NYSE:VLTA) with a price target of $11.
At the end of the September quarter, there were 17 hedge funds that had a position in Volta Inc. (NYSE:VLTA). The total value of this stake is $91.2 million.
6. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 18
ChargePoint Holdings, Inc. (NYSE:CHPT) provides EV charging services to residential, fleet, and commercial customers. The California-based company installs, monitors, and maintains the EV charging station as part of its subscription-based charging solution.
Recently, Richard Tullis of Capital One initiated an Equal Weight rating on ChargePoint Holdings, Inc. (NYSE:CHPT) while highlighting the company’s hardware and software products. The analyst set a price target of $24 for the stock.
Overall, 18 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes in the California-based EV charging company at the end of September 2021.
Just like Tesla, Inc. (NASDAQ:TSLA), General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and NIO Inc. (NYSE:NIO), ChargePoint Holdings, Inc. (NYSE:CHPT) is also a good investment option for investors looking to jump into the EV space, according to market analysts.
Alger Mid Cap Focus Fund, in their Q1 2021 investor letter, mentioned Chargepoint Holdings Inc. (NYSE: CHPT) and shared their insights on the company. Here is what the fund said:
“ChargePoint Holdings, Inc. was among the top detractors from performance. ChargePoint provides a network of electric vehicle (EV) charging stations globally. Like equities of many businesses geared to electric vehicles, ChargePoint shares underperformed in the first quarter of 2021 as part of a broad rotation away from high-growth technology companies with limited track records of performance as public companies. Longer-term, Charge Point could potentially serve as a bellwether company of the fast growing EV category and we believe it is an attractive way to gain exposure to EV adoption without betting on whether a particular EV brand will win in the marketplace. Additionally, EVs are a massive end market.”
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Disclosure. None. 10 Best EV Charging Stocks to Buy Now is originally published on Insider Monkey.
