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 Wallbox N.V. (NYSE:WBX) 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.
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An engineer troubleshooting a DC Fast Charger Equipment.
Wallbox N.V. (NYSE:WBX)
Number of Hedge Fund Holders: 2
Wallbox N.V. (NYSE:WBX) is a rising Spain-based company in the EV sector and is reshaping how energy is utilized for EVs. The company is engaged in designing and producing a variety of charging solutions tailored for residential, business, and public use. It runs through three segments, Europe-Middle East and Asia, North America, and the Asia-Pacific.
The company’s product lineup includes several smart AC chargers for homes and shared spaces, such as the Pulsar Plus, Pulsar Plus Socket, Pulsar Max, and Pulsar Pro. The chargers provide an efficient and user-friendly experience for EV owners, whether they are charging at home or in multi-unit residences.
For commercial and fleet needs, the company offers the Commander 2, which features a 7-inch touchscreen for a secure and customized user interface, and the Copper SB, an AC charger with an integrated socket that supports both type 1 and type 2 cables.
In the public charging arena, its Supernova DC fast charger stands out. Designed for efficient operation at up to 150 kW, the Supernova can add approximately 130 miles of range in just 15 minutes of charging. Its modular design and compact size make it suitable for installation in diverse locations such as urban areas, intercity routes, and semi-public parking spaces. The model offers a cost-effective alternative to other high-speed chargers.
In the second quarter, 2 hedge funds had stakes in Wallbox (NYSE:WBX), with total positions worth $201,000. It is among our best EV charging stocks to invest in.
Recent developments highlight the company’s growth and strategic focus. In July, it secured a $45 million investment, which will be led by Generac Power Systems, a leading energy technology company. The funding strengthens the company’s financial position and supports its expansion, particularly in the North American market. Generac’s extensive dealer network of over 8,000 dealers will help distribute the company’s products, including the Quasar 2 bidirectional charger and the Supernova, which will better their market reach.
Wallbox (NYSE:WBX) has also formed partnerships with major automakers like Nissan and Kia to provide tailored home charging solutions. The company reported strong financial results for the second quarter. It generated €48.8 million in revenue, which is the highest for any quarter to date and represented a 48% increase from the previous year. The company experienced substantial growth in the North American market, with AC and DC sales increasing over 65% year-over-year, which outpaces overall EV market growth, as per the company.
During the same period, it launched its highest power-to-footprint ratio DC fast charger yet, the Supernova 220. It ended the quarter with €65.2 million of cash, cash equivalents and financial investments. The figure does not account for the recent $45 million investment from Generac and other investors.
Overall WBX ranks 11th on our list of the best EV charging stocks. While we acknowledge the potential of WBX 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 WBX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure. None. This article is originally published at Insider Monkey.