10 Best EV Charging Stocks According to Hedge Funds

In this article, we will be taking a look at the 10 best EV charging stocks according to hedge funds.

Electric vehicles have been part of the automotive industry for quite a while now, with consumers, manufacturers, and governments alike arguing that these vehicles should be a significant part of the global community’s future. As climate change and global warming concerns gain more traction year by year, investing in sustainable and environmentally-friendly products such as electric vehicles is becoming a top priority for many individuals and organizations.

A New Group Emerges To Challenge Tesla

Companies like NIO Inc. (NYSE:NIO), Rivian Automotive Inc. (NASDAQ:RIVN), and Tesla, Inc. (NASDAQ:TSLA) have been at the forefront of the EV race, with the third company being the major dominating force in the EV market. Elon Musk’s EV manufacturing company has long held the crown among its competitors for its stellar electric vehicles and Tesla Superchargers. However, CNBC reported just this July that the reigning champion has started to face a challenge from some of its competitors in 2023. A new group has been formed of some of the most prominent EV makers in the US, with the sole aim of providing electric vehicle charging in the country. This move has been influenced both by a desire to put a stop to Tesla, Inc.’s (NASDAQ:TSLA) dominance in the EV space and by an inclination to further benefit from the Biden administration’s subsidies for electric vehicles and electric vehicle charging networks.

The automakers part of this group include Bayerische Motoren Werke AG (ETR:BMW), General Motors Company (NYSE:GM), Honda Motor Company Ltd. (NYSE:HMC), Hyundai Motor Co (KRX:005380), Kia Corp (KRX:000270), Mercedes Benz Group AG (ETR:MBG), and Stellantis N.V. (NYSE:STLA). While these companies represent about half of US vehicle sales, they do not hold a large share of the electric vehicle market, which may be part of the reason why these automobile manufacturers are now making this move in the electric vehicle charging space. According to the CNBC report, the group is aiming to provide 30,000 electric vehicle chargers for which it is initially targeting major highways and cities.

As this coalition of companies gets to work on its new project, those interested in the electric vehicle industry may begin to wonder whether or not this group will be able to chip away at Tesla, Inc.’s (NASDAQ:TSLA) positions in the market by forcing it to share some of its business with its competitors. However, at present, Musk’s company offers the largest network of fast chargers for electric vehicles in the US. This network consists of about 18,000 Superchargers. Considering the sheer might of Tesla, Inc.’s (NASDAQ:TSLA) operations so far in this area, it might not be too easy for a new coalition such as this one to take over Musk’s market share.

More Updates In The EV Space

Alongside this competitive atmosphere, automakers are also signing deals with Tesla, Inc. (NASDAQ:TSLA) to use its EV charging network and technologies in North America. CNBC reported this June that General Motors Company (NYSE:GM) is one of several companies that have entered into such a partnership, and it will be able to access about 12,000 Tesla fast chargers using an adapter alongside the Tesla EV charging app as a result of this partnership.

The Rise of VinFast Auto

One more new development worth noting is the rise of a new company in the EV space, VinFast Auto Ltd. (NASDAQ:VFS). The Vietnamese company made its debut on the US Nasdaq Index on August 15 and has become the largest EV startup to “soar to an outsize valuation” right after a non-traditional stock offering, according to a Wall Street Journal article from this August. VinFast Auto Ltd. (NASDAQ:VFS) has managed to outpace older automakers like General Motors Company (NYSE:GM) because of its momentum, and on its opening day, it rose to a valuation of about $86 billion. Such developments are signifying that the EV sector is ripe for investing at the moment, with companies like these starting to reap the benefits of the public interest in EVs.

Government Aims In The EV Sector

Regardless of who manages to come out on top in this electric vehicle charging race, the fact remains that such active participation on the part of the companies involved in this industry can only mean good things for the US market in the long run. Additionally, it can also mean that President Biden’s new EV charging stations target is that much closer to being met. The Biden administration has put forth a target of setting up 500,000 chargers for electric vehicles by 2030. Such an ambitious target would seem almost impossible to achieve. However, with major prominent automakers banding together to provide a vast network of EV chargers all across the US, this target may end up being not so far-fetched after all.

Considering the above, we have compiled a list of some of the best EV charging stocks of 2023. These include some of the largest EV charging companies alongside some smaller but innovative names in the industry. Investors may do well by considering these stocks for their portfolios as we navigate through the second half of the year because of the high level of activity currently being witnessed in the sector and the drive of major automakers to make EVs and EV charging more readily accessible to consumers across the nation.

Photo by J Dean on Unsplash

Our Methodology

For this article we scanned Insider Monkey’s database of 910 hedge funds updated as of the end of the second quarter of 2023 and picked 10 EV charging stocks with the highest number of hedge fund investors.

Best EV Charging Stocks According to Hedge Funds

10. ABB Ltd (NYSE:ABB)

Number of Hedge Fund Holders: 7

ABB Ltd (NYSE:ABB) is an electrical components and equipment company based in Zurich, Switzerland. The company provides electric vehicle charging infrastructure, renewable power solutions, modular substation packages, and more as part of its suite of EV charging products and services.

As of August 7, Barclays analysts have a Neutral rating on shares of ABB Ltd (NYSE:ABB).

Seven hedge funds were long ABB Ltd (NYSE:ABB) in the second quarter. Their total stake value in the company was $14.3 million.

Holding 132,745 shares in the company, Marshall Wace LLP was the largest shareholder in ABB Ltd (NYSE:ABB) at the end of the second quarter.

9. Workhorse Group, Inc. (NASDAQ:WKHS)

Number of Hedge Fund Holders: 8

Millennium Management was the most prominent shareholder in Workhorse Group, Inc. (NASDAQ:WKHS) at the end of the second quarter, holding 960,246 shares in the company.

Workhorse Group, Inc. (NASDAQ:WKHS) is an automobile manufacturing company based in Sharonville, Ohio. The company offers electric vans and trucks, drones, charging stations, and more. Its certified dealers also investing in charging stations.

A Buy rating was maintained on shares of Workhorse Group, Inc. (NASDAQ:WKHS) on July 20 by Christopher Souther, an analyst at B. Riley Securities. The analyst also holds a price target of $3 on the stock.

Workhorse Group, Inc. (NASDAQ:WKHS) was spotted in the 13F holdings of eight hedge funds in the second quarter, with a total stake value of $1.9 million.

8. Allego N.V. (NYSE:ALLG)

Number of Hedge Fund Holders: 12

We saw 12 hedge funds holding stakes in Allego N.V. (NYSE:ALLG) at the end of the second quarter. Their total stake value in the company was $639,000

Allego N.V. (NYSE:ALLG) is an automotive retail company working primarily with electric vehicle charging products and services. It is based in Arnhem, Netherlands. The company offers charging solutions for electric cars, buses, trucks, and motors. Its charging network provides renewable energy and charging solutions for business-to-business customers.

As of August 16, Matt Summerville, an analyst at DA Davidson, holds a Buy rating on shares of Allego N.V. (NYSE:ALLG). The analyst also maintains a price target of $7.50 on the stock.

Like NIO Inc. (NYSE:NIO), Rivian Automotive Inc. (NASDAQ:RIVN), and Tesla, Inc. (NASDAQ:TSLA), Allego N.V. (NYSE:ALLG) is an EV charging stock worth considering this year.

7. ChargePoint Holdings, Inc. (NYSE:CHPT)

Number of Hedge Fund Holders: 15

Gabe Daoud, an analyst at TD Cowen, holds an Outperform rating on shares of ChargePoint Holdings, Inc. (NYSE:CHPT) as of August 15. The analyst also placed a price target of $14 on the stock.

ChargePoint Holdings, Inc. (NYSE:CHPT) was spotted in the portfolios of 15 hedge funds in the second quarter, with a total stake value of $62.1 million.

ChargePoint Holdings, Inc. (NYSE:CHPT) is another electrical components and equipment company on our list. The company is based in Campbell, California. ChargePoint Holdings, Inc. (NYSE:CHPT) offers electric vehicle charging networks and charging solutions in the US and internationally. Its portfolio of products and services includes hardware, software, and services for commercial, fleet, and residential customers.

Like NIO Inc. (NYSE:NIO), Rivian Automotive Inc. (NASDAQ:RIVN), and Tesla, Inc. (NASDAQ:TSLA), ChargePoint Holdings, Inc. (NYSE:CHPT) is a stock that is highly popular among hedge funds today.

6. EVgo Inc. (NASDAQ:EVGO)

Number of Hedge Fund Holders: 16

EVgo Inc. (NASDAQ:EVGO) is an automotive retail company that operates a direct current fast charging network for electric vehicles in the US. The company is based in Los Angeles, California. It offers electricity to drivers directly, who are able to access the company’s publicly available networked chargers. The company also offers ancillary services like the customization of digital applications, charging data integration, and loyalty programs.

A total of 16 hedge funds held stakes in EVgo Inc. (NASDAQ:EVGO) in the first quarter. Their total stake value in the company was $18 million.

As of June 20, Itay Michaeli, an analyst at Citigroup, holds a Neutral rating on shares of EVgo Inc. (NASDAQ:EVGO). The analyst also placed a price target of $5.10 on the stock.

Point72 Asset Management was the largest shareholder in EVgo Inc. (NASDAQ:EVGO) at the end of the second quarter, holding 756,200 shares in the company.

5. XPeng Inc. (NYSE:XPEV)

Number of Hedge Fund Holders: 17

Ding Luo at CLSA upgraded XPeng Inc. (NYSE:XPEV) shares from Outperform to Buy on August 8, alongside announcing a $24 price target on the stock.

XPeng Inc. (NYSE:XPEV) is an automobile manufacturing company that also offers supercharging services for EVs. It is based in China.

Our hedge fund data for the second quarter shows 17 funds long XPeng Inc. (NYSE:XPEV), with a total stake value of $131.8 million.

4. Lucid Group Inc. (NASDAQ:LCID)

Number of Hedge Fund Holders: 18

Based in Newark, California, Lucid Group Inc. (NASDAQ:LCID) is an EV manufacturing company. It has also been working on installing a nationwide EV charging network for its vehicles since 2023.

Chris Pierce at Needham holds a Buy rating and a $9 price target on Lucid Group Inc. (NASDAQ:LCID) shares as of August 8.

In total, 18 hedge funds were long Lucid Group Inc. (NASDAQ:LCID) in the second quarter, with a total stake value of $98.9 million.

3. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 19

NIO Inc. (NYSE:NIO) had 19 hedge funds long its stock in the second quarter. Their total stake value was $120.5 million.

On August 11, Edison Yu at Deutsche Bank maintained a Buy rating on NIO Inc. (NYSE:NIO) shares, alongside a $17 price target.

NIO Inc. (NYSE:NIO) is a Chinese EV maker. It also offers power and charging solutions and products, such as the NIO power charger.

2. Rivian Automotive Inc. (NASDAQ:RIVN)

Number of Hedge Fund Holders: 37

Rivian Automotive Inc. (NASDAQ:RIVN) was upgraded from Neutral to Outperform on August 11 by James Picariello at Exane BNP Paribas, who also placed a $30 price target on the stock.

We saw 37 hedge funds long Rivian Automotive Inc. (NASDAQ:RIVN) in the second quarter, with a total stake value of $782.9 million.

Based in Irvine, California, Rivian Automotive Inc. (NASDAQ:RIVN) is an EV maker that provides wall chargers for EVs as well, among other charging products and solutions.

Here’s what Baron Funds said about Rivian Automotive Inc. (NASDAQ:RIVN) in its first-quarter 2023 investor letter:

“Shares of Rivian Automotive, Inc. (NASDAQ:RIVN), a U.S.-based EV manufacturer, fell during the quarter. Despite seven-fold growth in its monthly production rate between late 2021 and the end of 2022, production guidance for 2023 missed analyst forecasts because of supply-chain constraints, principally semiconductors. Moreover, notwithstanding an attractive long-term opportunity and favorable product reviews by customers and industry experts, investors remain concerned about liquidity risks as the company burns cash during its early production stage while unit economics remain challenged. Vehicle sales through the end of 2023 will be at Rivian’s legacy vehicle pricing, which was set before inflationary and supply-chain pressures emerged last year across the entire automotive space. New pricing and improved unit economics should be realized in 2024, and Rivian is slated to launch its R2 vehicle line in 2026. We have adjusted Rivian to a smaller position in our portfolio. Despite near-term macro and execution risks, we do believe that Rivian’s current valuation offers attractive long-term returns. During the year, we will remain focused on Rivian’s production ramp, vehicle demand, unit-level economics, and cost controls as well as progress on its R2 vehicle platform, its next-gen Enduro electric motor, and its battery system advancements.”

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 79

Tesla, Inc. (NASDAQ:TSLA) is perhaps the most popular EV stock in the market. It offers a network of Superchargers alongside its general electric vehicles and more.

Tesla, Inc. (NASDAQ:TSLA) was spotted in the portfolios of 79 hedge funds at the end of the second quarter. Their total stake value was $6.5 billion.

An Outperform rating and a $300 price target were maintained on Tesla, Inc. (NASDAQ:TSLA) shares on July 20 by Baird’s Ben Kallo.

See also 10 Best Small Cap Electric Vehicle Stocks to Buy and 11 Most Undervalued EV Stocks to Buy.

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Disclosure: None. 10 Best EV Charging Stocks According to Hedge Funds is originally published on Insider Monkey.