The electric vehicle revolution has arrived, and while everyone is rushing to buy Tesla (NASDAQ:TSLA) stock and Nio (NYSE:NIO) stock to gain exposure to this megatrend, there’s actually a much better, off-the-radar way to play the EV Revolution: EV charging stocks.
The logic is simple …
No charging stations. No electric vehicles.
Gas cars run on fuel. Without fuel, a gas car is just a metal box with four wheels that doesn’t go anywhere. That’s why, in order to make gas cars broadly useful, the world built out a network of millions of refueling stations. The owners of those refueling stations — Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM) and Royal Dutch Shell (NYSE:RDS.A) — are $100-plus billion giants.
The same thinking applies to electric vehicles.
EVs run on charge. Without charge, an EV is just a metal box with four wheels that doesn’t go anywhere. That’s why, to make EVs broadly useful, the world will have to replace its network of millions of refueling stations with a network of millions of recharging ports. The owners of those recharging ports will be $100-plus billion giants, one day — the new Chevron, Exxon and Shell, if you will.
The best part? It doesn’t matter which auto maker wins the EV wars. So long as consumers buy more EVs, there will be a greater need for charging station infrastructure. Thus, EV charging stocks are a broad, less risky bet on the entire EV revolution.
With that in mind, let’s take a look at my three favorite EV charging stocks to buy for huge gains in the 2020s:
- Blink Charging (NASDAQ:BLNK)
- ChargePoint (NYSE:SBE)
- EVBox (NYSE:TPGY)
At the top of this list of EV charging stocks to buy is the stock market’s longest tenured EV charging operator, Blink Charging.
Many EV charging stocks came public in 2020 as companies tried to capitalize on robust investor enthusiasm for all things EV-related. Blink Charging was not one of those companies. Instead, Blink Charging has been on Wall Street for over 10 years.
But, it wasn’t until the EV Revolution went mainstream last year that BLNK stock soared into the spotlight. Over the past year alone, BLNK stock is up more than 2,000%.
This big rally is just getting started.
Blink is America’s second-largest charging station operator, with more than 23,000 EV charging stations throughout the U.S., Europe and the Middle East. The company has a broad range of high-quality chargers for every need, and it has scored partnerships with important clients across all verticals — such as food, McDonald’s (NYSE:MCD); commercial, Facebook (NASDAQ:FB); and retail, Whole Foods.
Blink should be able to leverage its incumbent technology advantages and partnership network to, when all is said and done, shake out as one of the largest EV station operators in the U.S. and Europe (this isn’t a winner-take-all market).
Yet, Blink is worth less than $2 billion today — broadly implying that BLNK stock still has enormous upside potential over the next several years.
The second name on this list of EV charging stocks to buy is the highest-quality name on this list, too: ChargePoint.
ChargePoint is America’s largest EV charging station operator. The company operates over 100,000 charging ports, and commands 73% EV charging station market share in North America – making it 7X larger than the closest competitor.
This size is a huge advantage because of network effects.
On the commercial side, roughly 62% of the Fortune 50 – including Facebook, Netflix (NASDAQ:NFLX), Salesforce (NASDAQ:CRM), Microsoft (NASDAQ:MSFT), and Adobe (NASDAQ:ADBE) – already deploy ChargePoint charging stations at their corporate offices. ChargePoint should be able to leverage this already huge and very well-known commercial client portfolio to keep winning over more corporate office contracts.
The same is true across the education, hospitality, and residential verticals, where ChargePoint counts Harvard, Stanford, Best Western, Disney, and Brookfield Partners as customers (among many, many others).
Meanwhile, from a consumer-facing perspective, ChargePoint has teamed up with auto makers like BMW so that their charging locations are seamlessly integrated into in-car navigation systems… and the company has a widely downloaded app which allows EV drivers to easily locate ChargePoint charging stations.
All of that will push ChargePoint to top-of-mind for consumers, which should provide a huge tailwind for ChargePoint in its pursuits to also dominate the at-home residential EV charging market.
All in all, the network effects at play here are powerful and pervasive.
Indeed, they’re so powerful and pervasive that – as EVs replace gas cars over the next one to two decades – ChargePoint will very likely replace Shell as the world’s largest “refueling” station operator.
Of course, that implies enormous long-term upside potential for SBE stock.
Last, but not least, on this list of EV charging stocks to buy is the EV charging leader in Europe: EVBox.
While Blink and ChargePoint are duking it out in North America, EVBox is running largely unrivaled as the most dominant EV charging station operator in Europe.
The company has installed over 190,000 charging ports all across Europe, from Spain (3,000 cumulation ports delivered) to Germany (40,000 ports delivered) to the UK (7,000 ports delivered) to the Nordics (10,000 ports delivered). Currently, there are 72,000 active EVBox charging ports in Europe – which is a big enough base to give the company over 25% share of the EV charging station market in Europe.
This European leadership is a big advantage for EVBox.
When it comes to the EV Revolution, Europe is leading the way. While the U.S. is barely cracking 5% EV penetration, Norway and Iceland are up above 50% EV penetration. Indeed, of the top 10 market of EV penetration globally in 2020, nine of them were located in Europe.
This big growth in Europe’s EV market will continue, because pretty much every country in the EU has committed to strict and aggressive decarbonization targets.
Big picture: EVBox is the charging station leader in one of the most attractive EV markets in the world. That’s a recipe for big gains ahead for TPGY stock.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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