In this article, we discuss the 10 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.”
5. EVgo, Inc. (NASDAQ:EVGO)
Number of Hedge Fund Holders: 19
EVgo, Inc. (NASDAQ:EVGO) owns over 800 EV fast-charging stations across 34 states, making it the largest public EV charging network in the US. The company’s direct current fast chargers are compatible with all Tesla, Inc., Ford, BMW, Hyundai, and Chevrolet electric vehicles.
The California-based EV charging company added over 36,000 customers in the third quarter, bringing the total number of customer accounts to 310,000. The company’s revenue climbed 73% year over year to $6.18 million in the period. Also, on November 23, Capital One analyst Richard Tullis initiated an Equal Weight rating on EVgo, Inc. (NASDAQ:EVGO) with a price target of $18 per share.
EVgo, Inc. (NASDAQ:EVGO) recently went public with a valuation of $2.6 billion in July via SPAC. The stock returned 38% to investors year to date. Of the 867 elite funds tracked by Insider Monkey, 19 were long EVgo, Inc. (NASDAQ:EVGO) at the end of September, up from 0 in the second quarter of 2021.
4. ABB Ltd (NYSE:ABB)
Number of Hedge Fund Holders: 19
ABB Ltd (NYSE:ABB) is a Swiss electrification and robotics company. Among its offerings are electric vehicle charging products. The company provides everything from residential EV charging stations to heavy-duty truck fast-charging solutions. Revenue in the third quarter came in at $7.03 billion, an increase of 7% year over year.
Jefferies analyst Simon Toennessen on November 3 upgraded ABB Ltd (NYSE:ABB) to Hold from Underweight and highlighted the company’s valuation. Toennessen increased his price target for the EV charging stock to CHF 29 from CHF 25.
The Zurich-based electrification company will provide the charging network for Lilium N.V.’s electric high-speed aircraft, which is set to launch in 2024. Shares of ABB Ltd (NYSE:ABB) soared 26% in the past six months.
Moreover, between June and September, 19 hedge funds held a total stake of $722 million in ABB Ltd (NYSE:ABB), up from 15 in the second quarter worth $658 million.
In the Q2 2021 investor letter of Artisan Partners, the fund mentioned ABB Ltd (NYSE: ABB) and discussed its stance on the firm. Here is what the fund said:
“ABB is a Swiss-based industrial conglomerate. Last year, new management launched a process to improve performance and focus company resources, and it’s paying off. During the quarter, the company reported terrific results exhibiting improvements over both last year’s depressed figures and over the 2019 revenue and profit run rate. Further, management announced plans to simplify the company’s structure by selling off or separately listing several of the company’s non-core businesses.”
3. SunPower Corporation (NASDAQ:SPWR)
Number of Hedge Fund Holders: 30
SunPower Corporation (NASDAQ:SPWR) has collaborated with Wallbox N.V. to use solar energy to power electric vehicles. The California-based solar energy provider started installing EV charging stations for Wallbox customers in July 2021.
With 3.9 million shares worth $89 million, New York-based investment firm D E Shaw is the biggest shareholder of SunPower Corporation (NASDAQ:SPWR). Overall, 22 hedge funds owned shares of the solar energy company at the end of the September quarter, compared to 25 in Q2.
The company’s revenue grew 17% to $323.6 million in the third quarter, up from $274.8 million in the second quarter of 2020. SunPower Corporation’s (NASDAQ:SPWR) residential solar energy business added 14,200 new customers during the period, representing a 29% increase.
2. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 30
NIO Inc. (NYSE:NIO) is a Chinese EV maker. The company markets mobile internet-based plug and charge systems. The stock increased 3.25% after Citi analyst Jeff Chung raised his price target for the stock to $87 from $70 in November while maintaining a Buy rating. Chung is optimistic about the Chinese EV manufacturer, as he sees NIO Inc. (NYSE:NIO) could very well gain market share in 2022 and 2023.
The company’s revenue in the third quarter was $1.5 billion, an increase of 116.6% year over year and 16% sequentially. Also, NIO Inc.’s (NYSE:NIO) gross margin improved in the period to 20.3%, up from 12.9% in Q3 2020. The EV stock climbed 15% in the past six months.
Despite a decrease in the number of hedge funds with stakes in the company in Q3, NIO Inc. (NYSE:NIO) remains one of the EV market’s gainers. At the end of September, 30 of the 867 funds tracked by Insider Monkey had stakes in the company, compared to 34 the previous quarter.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) gained 84% in the past six months. The California-based EV manufacturer is the most valuable autonomous vehicle company, accounting for 21% of the global EV market.
CEO Elon Musk has unloaded nearly $10 billion of the stock this month yet the stock remained stabilized over $1 trillion market cap. At the end of the September quarter, 60 out of 867 elite funds tracked by Insider Monkey had a total stake of $10.6 billion in Tesla, Inc. (NASDAQ:TSLA), same in the previous quarter worth $9.3 billion.
In Q3, the company installed 288 new Superchargers, increasing the total number of Tesla, Inc.’s (NASDAQ:TSLA) charging stations globally by 49% to 3,254. In August 2021, the EV behemoth completed the construction of its Supercharger production plant in Shanghai as part of its expansion. Once operational, the facility will be able to produce 10,000 Superchargers per year.
On November 18, Daniel Ives of Wedbush maintained an Outperform rating on Tesla, Inc. (NASDAQ:TSLA). Ives believes that the California-based EV maker is positioned to lead the $5 trillion market opportunity in the next decade. The analyst increased his price target for the EV stock to $1,400 from $1,100.
In its Q2 2021 investor letter, Worm Capital LLC, an investment management firm, mentioned Tesla, Inc. (NASDAQ: TSLA). Here is what the firm had to say:
“Tesla underperformed in the quarter, but we maintain our high conviction in the long-term thesis on each business model. Much like art or writing, investment research is a continuous process—it never really ends. Prices can move in either direction in any given quarter, but our advantage often comes from knowing the businesses so well that short-term fluctuations in pricing shouldn’t affect our decision-making. On high conviction positions, this patience is often rewarded, which is why research is so valuable to our process Tesla is in a class of its own. What many in the market seem to (still) not understand is that Tesla is not a car company so much as a complex manufacturing firm—with significant recurring software potential—growing, in our view, at a targeted rate of 50-100% YoY over the next several years. Unlike any other automotive firm in existence today, Tesla alone is a vertically integrated hardware and software business developing state-of-the-art manufacturing techniques that will revolutionize the auto industry (i.e. its Giga Presses, 4680 cells, etc.). It is a generational company and we anticipate it will eventually be the largest company in the world. Many of the conventional narratives around competition displacing Tesla’s lead are fundamentally flawed, and the many headlines surrounding Tesla’s approach to autonomy are frustratingly superficial. (As an aside, we highly recommend watching Andrej Karpathy’s, Tesla’s head of AI, his recent presentation from June: “Tesla details its self-driving Supercomputer that will bring in the Dojo era”)”
You can also take a peek at the 10 Stocks in Focus After Posting Their Financial Results and 10 Best Biotech Stocks Under $20 in Cathie Wood’s Portfolio.
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Disclosure. None. 10 Best EV Charging Stocks to Buy Now is originally published on Insider Monkey.
