We recently published a list of 11 Best EV Charging Stocks To Invest In. In this article, we are going to take a look at where Blink Charging (NASDAQ:BLNK) stands against other best EV charging stocks.
Over the last few years, the electric vehicle (EV) market has experienced significant growth, due to consumer demand, automaker investments, and substantial government support. In the US, the $7.5 billion from the 2021 Infrastructure Investment and Jobs Act and tax credits from the Inflation Reduction Act have also fueled EV growth.
According to the International Energy Agency (IEA), global public charging points are expected to exceed 15 million by 2030 and will increase to nearly 25 million by 2035. In the U.S., the government aims to install 500,000 public charging ports by 2030, with the total number of chargers expected to reach 900,000 in 2030 and 1.7 million by 2035.
Globally, home charging is expected to grow to over 270 million units by 2035, with more than 45% of electricity coming from public or private non-home chargers. Charging infrastructure for heavy-duty vehicles (HDVs) is also expected to grow significantly. By 2035, installed HDV charging capacity is projected to reach 2,000 GW. Policies like the EU’s Alternative Fuels Infrastructure Regulation and U.S. strategies are driving this expansion, alongside private investments.
The Road Ahead for EV Charging: Industry Growth and Challenges
According to PwC’s analysis, the number of charge points in the U.S. must grow from around 4 million today to 35 million by 2030 to meet demand. The PwC report has projected that the number of EVs could reach 27 million by 2030 and 92 million by 2040.
The EV supply equipment (EVSE) market is expected to expand from $7 billion to $100 billion by 2040, at a 15% compound annual growth rate. The market’s primary value pools are hardware, software, installation services, and charge point operators (CPOs). CPOs, which build, operate, and maintain charging stations, are expected to dominate and capture 65% of market revenue by 2040. On the other hand, hardware providers’ share will shrink from 46% today to 20% by 2040.
Despite the clear market opportunities, challenges remain, including educating consumers, financing infrastructure, and ensuring cost-effective solutions across different charging segments. Companies looking to enter or expand in the EVSE market will need to understand evolving customer needs, adopt appropriate business models, and prepare for long-term investments with a focus on strategic partnerships and potential acquisitions.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician working on an EV charging device, emphasizing the company’s expertise in EV charging technologies.
Blink Charging Co. (NASDAQ:BLNK)
Number of Hedge Fund Holders: 5
Blink Charging Co. (NASDAQ:BLNK) is a prominent player in the EV charging infrastructure industry, operating one of the largest charging networks in the United States and globally. It takes the 8th spot on our list of the best EV charging stocks to invest in.
The company manages over 90,000 chargers across several countries, which positions the company as a top provider in the EV charging space. Since its founding in 2006, the company has undergone several transformations, including strategic acquisitions like ECOtality’s Blink Network and SemaConnect, which have expanded its reach.
It recently partnered with the e-commerce platform, WEX, to make it easier for businesses to charge EVs as part of their fleets. WEX supports around 19.4 million vehicles worldwide, and will now include Blink’s (NASDAQ:BLNK) EV chargers in its network.
Drivers can use the WEX app or card to charge their EVs, with secure payments and detailed reports for tracking. The partnership supports the company’s goal of promoting clean energy and making transportation more sustainable.
Additionally, on August 27, Blink Charging (NASDAQ:BLNK) announced its strategic partnership with Create Energy, a renewable energy company from Tennessee, to provide advanced energy management solutions. The collaboration aims to offer businesses in sectors like logistics, real estate, and automotive a unified platform for integrating renewable energy resources such as solar panels and battery storage systems with the company’s EV chargers.
The joint effort is designed to simplify project processes and reduce costs by combining both companies’ technologies. Leaders from both companies emphasized the innovation and customer benefits this partnership will bring to the commercial and industrial market.
On August 8, TipRanks reported that Needham analyst Chris Pierce maintained a Buy rating on Blink Charging (NASDAQ:BLNK) with a $4 price target. Despite the company lowering its full-year revenue forecast and delaying profitability for adjusted EBITDA, Pierce remains optimistic about the company’s growth potential. He highlighted the company’s diverse business model and the expected increase in demand for EV charging stations as electric vehicle adoption rises in the U.S. Despite short-term challenges, he believes the company’s long-term outlook is promising.
In Q2, 5 hedge funds had stakes worth $7.78 million in Blink Charging (NASDAQ:BLNK). As of June 30, D E Shaw holds over 1.8 million of the company shares, worth nearly $5 million and is the company’s most prominent shareholder.
Overall BLNK ranks 8th on our list of the best EV charging stocks. While we acknowledge the potential of BLNK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BLNK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure. None. This article is originally published at Insider Monkey.
