In this article we will be taking a look at 10 EV charging stocks to buy now.
Electric vehicles, or EVs, have seen a drastic increase in consumer demand over the past years. The sector has been spearheaded by giants such as Tesla Inc. (NASDAQ:TSLA), and is steadily becoming representative of the future of the vehicle industry. Global passenger EV sales were forecasted to top 6.3 million units by the end of 2021 by BloombergNEF. This estimate was double the total from 2020.
Bloomberg has noted that the third quarter of 2021 demonstrated a drastic increase in the sale of global passenger EVs, by about 94%. As such, companies like Fisker Inc. (NYSE:FSR) and Nikola Corporation (NASDAQ:NKLA), among others in the sector, are poised to soar. In the third quarter of 2021, over a million passenger EVs were sold.
The EV Market Outlook
As a result of these growing sales, the global electric passenger car stock has grown exponentially over the past ten years, according to the Global EV Outlook 2021 Report, published by the International Energy Agency. In 2010, the stock was non-existent and finally grew to about 2 million units by 2016. Yet by 2020, it had grown incredibly to over 12 million units.
Despite the market-shattering coronavirus pandemic, electric car registrations increased in major markets in 2020. This surge in EV registrations persisted in 2021 and the growing amount of sales of electric vehicles noted in 2021 and expected to continue in 2022 add to the increasingly positive investor sentiment surrounding EV and EV charging stocks. The EV sector is also heavily supported by governmental policies and investments, including President Biden’s goal to ensure that half of all new vehicle sales in the US will be attributed to zero-emissions cars by 2030.
McKinsey & Company has thus mentioned that the flow of billions of dollars into proposed infrastructure spending to support the rapidly growing EV sector could result in an even greater boost in EV sales. The example of the Bipartisan Infrastructure Framework backs this claim, as through this deal, the government has promised $1.2 trillion for transportation and infrastructure spending over the course of eight years. Of this amount, $15 billion is to be allocated primarily to the EV sector, to help speed up the adoption of EVs and boost the US EV market as well.
Our Methodology
We have selected EV charging stocks that are extremely popular with hedge funds. These stocks also received positive ratings from market analysts recently.
EV Charging Stocks to Buy Now
10. Wallbox NV (NYSE:WBX)
Number of Hedge Fund Holders: N/A
Wallbox NV (NYSE:WBX), a smart electric vehicle charging and energy management provider, is among the top EV charging stocks to buy now based on analyst ratings which we will see below. The company was founded in 2015 and manufactures electric vehicle charging technologies for distribution.
In December, UBS analyst Chris Snyder placed a Buy rating on Wallbox NV (NYSE:WBX) shares.
Snyder also mentioned that the company is a leading provider of EV charging solutions in the residential sector, which gives it an edge as residential charging is an attractive market because of its lower risk demand outlook. The analyst also sees value in the company’s ability to benefit from follow-on software services revenues.
Wallbox NV (NYSE:WBX) is among other stocks in the EV sector which will gain from rising EV and EV charging technology sales. Stocks like Tesla Inc. (NASDAQ:TSLA), Fisker Inc. (NYSE:FSR), and Nikola Corporation (NASDAQ:NKLA) are also set to benefit from this development.
9. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: N/A
Rivian Automotive, Inc. (NASDAQ:RIVN) is a developer and manufacturer of electric adventure vehicles. The company has a nationwide network of DC fast chargers which can add about 140 miles of range in 20 minutes for their vehicles, making it among the best EV charging stocks to buy now.
In February, analyst Adam Jonas at Morgan Stanley reiterated an Overweight rating on Rivian Automotive, Inc. (NASDAQ:RIVN) shares.
Morgan Stanley analysts also noted that 87% of surveyed respondents from the firm’s clients prefer Rivian Automotive, Inc. (NASDAQ:RIVN) to Lucid Group. Analyst Jonas also ranked Rivian Automotive, Inc. (NASDAQ:RIVN) second on his US Auto stock rankings.
Greenlight Capital, an investment management firm, mentioned Rivian Automotive, Inc. (NASDAQ:RIVN) in its fourth-quarter 2021 investor letter. Here’s what they said:
“We made a material gain in Rivian (RIVN) as a result of its IPO. We met RIVN’s sponsors in 2018 as part of our continued work on electric vehicles, and were favorably impressed by their technology and discipline. In mid-2020, we made a small investment at a $10 billion valuation. In November, RIVN went public at a $70 billion valuation and traded to a peak valuation of $162 billion. We hedged in the options market to lock in a minimum valuation of about $120 billion for a good chunk of our position. While we are believers in the company, we did not have material exposure at year end.”
8. Beam Global (NASDAQ:BEEM)
Number of Hedge Fund Holders: 4
Beam Global (NASDAQ:BEEM) is a cleantech company that manufactures renewable energized products for EV charging infrastructure among other things. The company uses solar power and battery storage as power sources for its EV charging stations, making it an environmentally friendly option among the EV charging stocks to buy now.
In the third quarter of 2021, four hedge funds held stakes in Beam Global (NASDAQ:BEEM) worth $2.9 million. The largest stakeholder was Citadel Investment Group holding 94,200 shares worth $2.6 million.
Like Tesla Inc. (NASDAQ:TSLA), Fisker Inc. (NYSE:FSR), and Nikola Corporation (NASDAQ:NKLA), Beam Global (NASDAQ:BEEM) is among the more coveted EV and EV charging sector stocks to buy now.
7. Blink Charging Co. (NASDAQ:BLNK)
Number of Hedge Fund Holders: 6
Blink Charging Co. (NASDAQ:BLNK) owns, operates, and provides EV charging equipment and networked EV charging services in the US. The company is among the most renowned EV charging stocks to buy now, especially after its deal to supply EV chargers to GM car dealerships in North America. The deal has made the company one of the biggest sector gainers in 2022.
H.C. Wainwright’s Sameer Joshi holds a Buy rating on Blink Charging Co. (NASDAQ:BLNK) shares.
Needham’s analyst Vikram Bagri also noted this February that the company can be expected to improve its sales and generate additional revenues through its growing media business.
Six hedge funds out of 867 hedge funds were long Blink Charging Co. (NASDAQ:BLNK) in the third quarter, with Citadel Investment Group being the largest stakeholder in this stock as well. The total stake value was $4.4 million.
6. Volta Inc. (NYSE:VLTA)
Number of Hedge Fund Holders: 17
Volta Inc. (NYSE:VLTA) is a US-based electric vehicle infrastructure company. The company’s charging stations are compatible with all major plug-in hybrid and battery EV types in the US. These stations also feature digital screens for advertisements. Volta Inc. (NYSE:VLTA) is among the top EV charging stocks to buy now because of its volatile approach of combining digital media with charging stations to drive its revenue.
This February, analyst Jed Dorsheimer from Canaccord initiated coverage of Volta Inc. (NYSE:VLTA) shares with a Buy rating alongside a $10 price target.
The analyst also commented that the company’s unique charging and media business model provides investors with exposure to the upside of EVs and their charging infrastructure. Additionally, Cantor analysts have noted that the company’s advertising partnerships with The Coca-Cola Company and Facebook give it a competitive advantage.
Out of the 867 hedge funds tracked by Insider Monkey in the third quarter, 17 hedge funds held stakes in Volta Inc. (NYSE:VLTA). Their total stake value was $91.3 million.
Volta Inc. (NYSE:VLTA) is among the stocks in the EV sector that are poised to gain from rapidly increasing interest in EVs and EV charging among consumer markets and investor circles. Tesla Inc. (NASDAQ:TSLA), Fisker Inc. (NYSE:FSR) and Nikola Corporation (NASDAQ:NKLA) are also among the few stocks that will gain from this increasing interest.
5. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 18
ChargePoint Holdings, Inc. (NYSE:CHPT) is a provider of EV charging networks and charging solutions in the US. The company was founded in 2007 and is based in California. It is among the most popular EV charging stocks to buy now according to hedge fund sentiment.
This February, Citigroup analyst Itay Michaeli reiterated a Neutral rating on shares of ChargePoint Holdings, Inc. (NYSE:CHPT).
Needham’s Vikram Bagri also holds a Buy rating on ChargePoint Holdings, Inc. (NYSE:CHPT) as of this February, noting that the company’s recent acquisitions, such as that of ViriCity, a European electric fleet management company, will drive additional growth in 2022.
Our hedge fund data shows 18 hedge funds long ChargePoint Holdings, Inc. (NYSE:CHPT) in the third quarter, and 17 hedge funds long the stock in the second quarter. The total stake values were $97.9 million and $14.9 million respectively.
4. EVgo, Inc. (NASDAQ:EVGO)
Number of Hedge Fund Holders: 19
EVgo, Inc. (NASDAQ:EVGO) is a company that operates a DC fast-charging network for battery EVs in the US. The company operated about 800 such fast-charging locations in 2021, making it one of the more notable EV charging stocks to buy now.
Itay Michaeli, an analyst at Citigroup, holds a Neutral rating on EVgo, Inc. (NASDAQ:EVGO) shares as well, as of this February.
Needham’s Vikram Bagri has noted that EVgo, Inc.’s (NASDAQ:EVGO) strong partnerships and the operation of its stations give the company a leading position in the EV DC fast charging sector. The company has been successfully announcing profitable partnerships this year as well, such as its recent retail partnership with CBL Properties this January, which supports its plans to expand its public network.
EVgo, Inc. (NASDAQ:EVGO) had 19 hedge funds holding stakes in it in the third quarter, with a total stake value of $48.02 million.
3. ABB Ltd (NYSE:ABB)
Number of Hedge Fund Holders: 19
ABB Ltd (NYSE:ABB) is a manufacturer of electrification, industrial automation, and robotics and motion products for sale worldwide. The company offers EV charging infrastructure under its Electrification segment and is among the more diversified EV charging stocks to buy now.
This January, RBC Capital’s Sebastian Kuenne upgraded ABB Ltd (NYSE:ABB) shares to Outperform.
The company’s fourth quarter of 2021 earnings report shows an EPS of $1.33, beating estimates by $0.28. Its revenue was $7.57 billion, also beating estimates by $125.26 million.
For ABB Ltd (NYSE:ABB) as well, the number of hedge funds holding stakes in it in the third quarter was 19. Their total stake value was $721 million.
Artisan Partners, a high value-added investment management firm, mentioned ABB Ltd (NYSE:ABB) in its second-quarter 2021 investor letter. Here’s what they 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.”
2. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 30
NIO Inc. (NYSE:NIO) is a manufacturer of smart EVs in China. The company also offers power solutions and charging services for its EVs. It is one of the most well-rounded EV charging stocks to buy now because of the vast range of products and services it offers, such as Power Home, a home charging solution, Public Charger, a public fast charging solution, and its electric vehicles, among others.
In January, NIO Inc. (NYSE:NIO) was upgraded to Buy, by analyst Neal Du at 86 Research.
CLSA analyst Soobin Park also holds a Buy rating on NIO Inc. (NYSE:NIO) shares as of this February. The analyst added that the company stands out in the EV sector with its scale production and innovative battery-swapping model.
There were 30 hedge funds long NIO Inc. (NYSE:NIO) in the third quarter, and 34 hedge funds long the stock in the second quarter. Their total stake values were $1.1 billion and $2.1 billion respectively.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) is Elon Musk’s EV giant based in the US, and among the best EV charging stocks to buy now, based on positive analyst ratings. The company offers EVs and energy generation and storage systems across the world, alongside EV charging stations.
Morgan Stanley’s Adam Jonas holds an Overweight rating on Tesla, Inc. (NASDAQ:TSLA) shares as of this February. Daiwa’s Jairam Nathan also upgraded the company’s shares to Outperform this February.
The company’s EPS in the fiscal fourth quarter of 2021 was $2.54, while its revenue was $17.72 billion. Both beat estimates by $0.16 and $1.1 billion respectively. Tesla, Inc. (NASDAQ:TSLA) has also gained 29.2% in the past six months.
Out of 867 hedge funds, 60 hedge funds held stakes in Tesla, Inc. (NASDAQ:TSLA) in the third quarter of 2021. Their total stake value was $10.6 billion.
Alger, an investment management firm, mentioned Tesla, Inc. (NASDAQ:TSLA) in its fourth-quarter 2021 investor letter. Here’s what they said:
“Tesla is an electric vehicle (EV) manufacturer with a significant technology lead in its large and rapidly growing addressable market. Tesla is a consequential transportation company because it is setting the pace for industry innovation over the foreseeable future. It has potential to maintain its lead as it ramps up auto production and battery capacity. We are optimistic about EV innovation, adoption and Tesla’s growth prospects. The shares contributed to portfolio performance as Tesla successfully increased production of new model S and X units driving a richer revenue mix as the prices of these vehicles are higher and the cost to produce lower than earlier versions. Earnings estimates climbed for Tesla as pricing for vehicles in backlog has increased. Further, as Tesla’s newer, more efficient factories increase production, unit costs may potentially decline relative.”
See also 25 Best Things To Buy On Amazon Under 20 and Aquamarine Capital’s Top 10 Stock Picks.
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Disclosure: None. 10 EV Charging Stocks to Buy Now is originally published on Insider Monkey.
