In this article, we will be looking at the 11 Best EV Charging Stocks To Invest In.
The electric vehicle charging industry is generating high interest as the world shifts towards a greener future. Global EV sales are expected to grow by 36% in 2024. Although this growth is slower than the previous year growth of 62% in 2023, the EV market still remains a rapidly growing market. With sales of 10 million EVs in 2022, the global EV sales have more than tripled from 3 million EV sales in 2020. As per S&P Global Mobility, EV sales could make up 40% of total U.S. passenger car sales by 2030.
The deployment of public charging infrastructure is critical to support the growing number of electric light-duty vehicles. The stock of public slow chargers and fast chargers has been increasing. Notably, China leads the way with more than half of the global stock of public slow chargers. This highlights its commitment to swift EV deployment. Similarly, Europe and the United States have also seen a significant rise in charging infrastructure. This growth is driven by government initiatives and private-sector investments. The provision of publicly accessible chargers, mainly fast chargers along major roadways, addresses range anxiety. It also spurs EV adoption across a broader spectrum of the population.
The United States is also quickening its efforts to build a comprehensive national electric vehicle charging network. The country is seeing a steep rise in consumer interest in EVs. This is evidenced by record sales and a growing market share. This shift is supported by President Biden’s Investing in America agenda. Legislative milestones like the Inflation Reduction Act have made EVs more affordable and spurred domestic manufacturing, attracting substantial investment into the sector.
According to PwC, the US electric vehicle charging market could see a nearly tenfold increase to cater to around 27 million EVs by 2030. The number of charge points is expected to rise from 4 million to 35 million. The electric vehicle supply equipment market could increase from $7 billion to $100 billion by 2040. This growth is propelled by the rising acceptance of EVs, the expansion of charging infrastructure, and supportive legislative measures.
EV Stocks are Declining
The year 2024 has not been great for the electric vehicle companies. Once-prominent stocks like Rivian Automotive Inc (NASDAQ:RIVN), Lucid Group Inc (NASDAQ:LCID), and Xpeng Inc (NYSE:XPEV) have seen steep declines of 80% to 90% from their peak values. This sharp decline is attributed to several reasons. These include rising interest rates that have escalated borrowing costs, a downturn in economic growth, especially in Europe, and the phasing out of EV subsidies in key markets such as Germany. These factors have collectively dampened investor enthusiasm for EV stocks. The stocks of these companies had surged to exceptional highs during the pandemic, buoyed by speculative investments and the hype surrounding the transition to green energy.
Even the EV industry’s giant, Tesla Inc (NASDAQ:TSLA), has not been spared from the sell-off, with Tesla’s stock dipping by 10% over the past month. This downturn reflects broader industry challenges. These include a potential rollback of EV incentives, decreasing exports from China, and a general decline in the sentiment among EV buyers. The trouble is compounded by operational hurdles such as production delays caused by parts shortages and geopolitical tensions.
Future Trajectory
Despite the recent sell-off, the electric vehicle is poised for significant growth in the future. S&P Global projects 13.3 million battery electric passenger vehicles to be sold worldwide in 2024. This is a significant increase from an estimated 9.6 million BEVs sold in 2023. The introduction of more affordable EV models and reductions in battery costs can be catalysts for future growth. The decline in battery costs will lower the price of EVs, making them more affordable for the general public. This affordability, coupled with the continuous development of battery technologies, including solid-state batteries that promise extended ranges, is set to further propel EV adoption.
Photo by Michael Fousert on Unsplash
Our Methodology
For this article, we screened Insider Monkey’s database of 933 hedge funds updated as of the end of the fourth quarter of 2023 and picked 11 EV charging stocks with the highest number of hedge fund investors.
11 Best EV Charging Stocks To Invest In
11. Blink Charging Co. (NASDAQ:BLNK)
Number of Hedge Fund Holders: 7
Blink Charging Co. (NASDAQ:BLNK) operates a vast EV charging network. With a focus on providing accessible and reliable charging solutions, Blink Charging Co. (NASDAQ:BLNK) offers a diverse range of products. These are suited to meet the evolving needs of EV drivers and businesses equally. Among its notable offerings is the Blink IQ 200, a high-powered charging station designed for residential and commercial use. It is capable of delivering fast charging speeds.
Blink Charging Co. (NASDAQ:BLNK)’s journey is emblematic of the broader EV sector’s ascent, marked by technological advancements and an unwavering push for green energy solutions. As electric vehicles continue to gain mainstream acceptance, companies like Tesla Inc. (NASDAQ:TSLA), Plug Power Inc. (NASDAQ:PLUG), and Li Auto Inc. (NASDAQ:LI) are also positioned to benefit from this transformative era in transportation.
At the end of Q4 2023, 7 hedge funds held a position in Blink Charging Co. (NASDAQ:BLNK), amounting to a total value of $4.1 million.
Sculptor Capital was the leading stakeholder in Blink Charging Co. (NASDAQ:BLNK) at the end of Q4 2023, with a position worth $1.0 million.
10. Wallbox N.V. (NYSE:WBX)
Number of Hedge Fund Holders: 8
Wallbox N.V. (NYSE:WBX) offers a diverse array of products tailored to meet the evolving needs of electric car drivers. Among its notable offerings is the Pulsar Plus, a compact and intelligent home charging solution equipped with smart connectivity features for seamless monitoring and control. Wallbox N.V. (NYSE:WBX)’s Copper SB stands out as a sleek and durable charging solution suitable for residential and light commercial use.
Hedge fund holding increased in Wallbox N.V. (NYSE:WBX), with 8 hedge funds holding a position in the company, up from 3 in Q3 2023. Autonomy Capital held 175,652 shares of the company at the end of Q4 2023, making it the leading stakeholder in the company.
9. EVgo Inc. (NASDAQ:EVGO)
Number of Hedge Fund Holders: 12
EVgo Inc. (NASDAQ:EVGO) is a leading company in the electric vehicle charging space. The company has played a pivotal role in facilitating the widespread adoption of EVs by offering convenient charging infrastructure. EVgo Inc. (NASDAQ:EVGO)’s fast chargers are strategically positioned along highways and urban areas, allowing for quick and efficient charging during both long journeys and daily commutes.
For EVgo Inc. (NASDAQ:EVGO), there was a decrease in hedge fund sentiment from Q3 2023 to Q4 2023. The number of hedge funds holding in EVGO decreased from 13 to 12.
Millennium Management was the leading stakeholder at the end of Q4 2023, with a stake value of $5.4 million.
8. SunPower Corporation (NASDAQ:SPWR)
Number of Hedge Fund Holders: 14
SunPower Corporation (NASDAQ:SPWR) has expanded its operations to offer EV chargers. The company boasts a diverse portfolio of products tailored to promote renewable energy adoption and sustainability. SunPower® Carport Solutions incorporates solar energy with EV charging stations, thus exemplifying SunPower’s commitment to sustainable transportation solutions.
In Q4 2023, there was a decrease in hedge fund holding in SunPower Corporation (NASDAQ:SPWR) from 15 to 14 hedge funds. However, during this period, there was an uptick in the aggregate value of hedge fund investments in SunPower Corporation (NASDAQ:SPWR), ascending from around $21.82 million to $30.66 million.
7. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 15
Established in 2014, XPeng Inc. (NYSE:XPEV) has swiftly risen to prominence for its lineup of intelligent electric vehicles. However, XPeng Inc. (NYSE:XPEV)’s influence extends beyond its automotive prowess; the company is deeply committed to revolutionizing EV charging infrastructure. The company is actively investing in the development of efficient and user-friendly charging solutions.
In Q4 2023, the hedge fund holdings in XPeng Inc. (NYSE:XPEV) increased from 13 to 15, indicating growing hedge fund interest. Additionally, the total value of these holdings increased significantly, from approximately $128.72 million in Q3 2023 to about $190.85 million in Q4 2023. This increase of approximately $62.14 million in investment value suggests a strengthening confidence among hedge funds in XPeng Inc. (NYSE:XPEV)’s potential and outlook.
6. ChargePoint Holdings Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 17
Established in 2007, ChargePoint Holdings Inc. (NYSE:CHPT) has been at the forefront of advancing EV infrastructure, providing a robust network of charging stations. The company’s offerings include the ChargePoint Home Flex, a flexible and efficient home charging system that allows users to charge EVs up to 9 times faster than with a standard wall outlet. For commercial settings, ChargePoint delivers Level 2 AC stations ideal for workplaces and retail environments, alongside DC fast chargers designed for rapid charging in high-demand locations.
There was a slight increase in the number of hedge funds holding in ChargePoint Holdings Inc. (NYSE:CHPT) in Q4. However, the total value of these holdings experienced a significant decrease, from approximately $50.18 million in Q3 2023 to about $9.68 million in Q4 2023.
5. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 19
Founded in 1997, Plug Power Inc. (NASDAQ:PLUG) has surfaced as a pioneer in providing effective and enduring power solutions. Plug Power Inc. (NASDAQ:PLUG) has been expanding its reach into the electric vehicle charging market. The company’s ProGen hydrogen fuel cell engines are crafted to power a range of electric vehicles, from light to heavy-duty. They provide a clean, efficient option for conventional batteries. This move into EV charging is part of Plug Power Inc. (NASDAQ:PLUG)’s broader strategy to support zero-emission transportation through hydrogen fuel cell systems. These systems can be refuelled quickly, offering a significant gain in operational efficiency and uptime over traditional electric charging systems.
For Plug Power Inc. (NASDAQ:PLUG), there was a decline in hedge fund sentiment from Q3 2023 to Q4 2023. The number of hedge funds holding in Plug Power Inc. (NASDAQ:PLUG) decreased from 26 to 19. Furthermore, the total value of these holdings saw a significant decrease, dropping from approximately $128.58 million in Q3 2023 to about $17.82 million in Q4 2023.
4. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 20
With a focus on accessibility and sustainability, NIO Inc. (NYSE:NIO) is actively expanding its charging network to provide reliable and convenient solutions for EV owners. Among its standout offerings is the Power Swap station, a concept allowing NIO EV owners to swap depleted batteries for fully charged ones in minutes, dramatically reducing charging time compared to conventional charging stations.
Between Q3 2023 and Q4 2023, there was an increase in the number of hedge funds holding in NIO Inc. (NYSE:NIO) from 18 to 20. The total value of these holdings increased from approximately $156.84 million to $211.68 million. This indicates growing interest and confidence among hedge funds in NIO Inc. (NYSE:NIO).
3. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 31
Li Auto Inc. (NASDAQ:LI) has strategically positioned itself within the electric vehicle (EV) market by focusing on range-extended electric vehicles that incorporate an onboard gasoline-powered generator to recharge the battery. Li Auto Inc. (NASDAQ:LI)’s technology extends the driving range beyond that of traditional EVs, offering a practical solution for long-distance travel without the need for frequent stops at charging stations.
For Li Auto Inc. (NASDAQ:LI), the number of hedge funds holding LI increased from 28 to 31, indicating a growing interest among hedge funds. More impressively, the total value of these holdings nearly doubled, increasing from approximately $610.93 million in Q3 2023 to about $1.15 billion in Q4 2023.
2. Rivian Automotive Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 32
Established in 2009, Rivian Automotive Inc. (NASDAQ:RIVN) has risen to prominence for its electric trucks, SUVs, and delivery vans. Beyond its automotive achievements, Rivian is active in EV charging infrastructure. Rivian Automotive Inc. (NASDAQ:RIVN) is investing in the development of a charging network designed to deliver seamless and efficient charging solutions for its expanding fleet of electric vehicles.
For Rivian Automotive Inc. (NASDAQ:RIVN), there was a decrease in the number of hedge funds holding its stock, from 35 in Q3 2023 to 32 in Q4 2023. However, despite this decrease in the number of hedge fund holders, the total value of these holdings saw a significant increase, from approximately $867.07 million in Q3 2023 to about $1.13 billion in Q4 2023.
Baron Funds mentioned Rivian Automotive, Inc. (NASDAQ:RIVN) in its third quarter 2023 investor letter. Here is what it said:
Shares of Rivian Automotive, Inc., a U.S.-based electric vehicle manufacturer, continued their volatile trading, and after declining during the first half of 2023, rose 45.7% during the third quarter. Rivian’s unit economics are improving as a result of several factors: i) the company’s production rate is increasing, which enables it to better absorb fixed costs; ii) Rivian is ramping-up the usage of more price effective technologies, such as LFP batteries and its in-house developed motor, Enduro; and iii) the company is benefiting from renegotiated supplier agreements, as its scale and purchasing power have significantly increased over the last few years. Management expects continued progress in profitability ahead as Rivian further scales production. We remain shareholders and believe that the release of Rivian’s new smaller SUV dubbed R2, which is planned for early 2024, would enable the company to compete in the higher volume SUV segment, and significantly expand its addressable market. On the liquidity front, we expect the company to raise additional funds to support its longer-term business plans.
1. Tesla Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 82
Tesla Inc. (NASDAQ:TSLA) stands as a trailblazer in the realm of electric vehicle charging infrastructure. Tesla Inc. (NASDAQ:TSLA)’s supercharger network spans the globe, offering fast and convenient charging solutions for Tesla owners, enabling long-distance travel with minimal downtime.
For Tesla Inc. (NASDAQ:TSLA), there was a marginal increase in the number of hedge funds holding its stock, from 81 in Q3 2023 to 82 in Q4 2023. More notably, the total value of these holdings experienced a significant increase, from approximately $5.81 billion in Q3 2023 to about $6.28 billion in Q4 2023.
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Disclosure. None. 11 Best EV Charging Stocks To Invest In was initially published on Insider Monkey.
