There is no denying the fact that electric vehicles (EVs) are taking over the roads globally, and that what we’ve seen so far is just the beginning. With the support from the government and the rising awareness about climate change, the demand for EVs will be on the rise in the coming months.
But the EV industry cannot function without the charging facility, and this is where EV charging companies are set to benefit. They provide the resources and equipment that can help build EV charging equipment. With the growth and progress of the EV industry, some of the best EV charging stocks will move higher.
If you believe in the future of EVs and want to make the most of its growth, invest in one of these top EV charging stocks.
Tesla (TSLA)
Many of us have only seen Tesla (NASDAQ:TSLA) as a leader in electric vehicle manufacturing, but the company is so much more than that. Tesla does not rely on others for the charging network and ensures that each Tesla owner has a convenient way to charge the car’s batteries.
In its initial days, Tesla only assured Tesla owners that they could charge their cars anywhere, without any worry. Today, it owns and operates the largest fast-charging network in the world. It has over 45,000 charging stations which can now become an additional source of revenue for the company.
The company is an established leader in the EV space and has recently reported strong revenue growth in the second quarter. With the growth of its charging capabilities, Tesla has created a solid network that can generate significant revenue. It has partnerships with General Motors (NYSE:GM), Ford (NYSE:F), Rivian Automotive (NASDAQ:RIVN), and Nissan (OTCMKTS:NSANY).
Many automakers do not have the liquidity to lay out their charging stations, and they are tying up with Tesla so that buyers can use the company’s superchargers. As per an analysis from Piper Sandler & Co., Tesla’s charging network service can generate over $3 billion in revenue in a decade from now. Musk has changed the chargers from a cost burden to a revenue-generating machine.
TSLA stock is trading at $264 and is up 144% year to date. The stock has generated over 1,000% returns in the past five years and is a solid addition to your portfolio. When it comes to Tesla’s EV charging network, this is only the beginning and we will be able to see the revenue numbers showing the charging network’s contribution from next year. It is one of the essential EV charging stocks to own now.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) is another company to watch out for in the sector. Lithium is a highly valuable resource as it is used in rechargeable lithium-ion batteries, and while the company isn’t profitable yet, generating a limited revenue, it does have the potential to grow in the coming years.
The company is currently focusing on the development of lithium mining projects across mines in Nevada and Argentina. Lithium Americas is also working on getting the Thacker Pass up and running. It is an asset that has close to 16.1 million tons of battery-grade lithium carbonate equivalent for extraction.
With the growing demand for EVs, there will be a rise in the demand for batteries, and this will lead to revenue for the company. It aims to become a low-cost producer for the automotive industry.Lithium Americas has an agreement with General Motors to supply raw lithium for its projects. Although it will start deliveries in 2026, investors may have to wait for a few years to see the company report strong financials. The scarcity of lithium has led to several automakers turning towards mining. Once Lithium Americas assets start generating revenue, it could attract more investments from other automakers.
Currently, LAC stock looks like a good opportunity, trading at $19 today. It is much lower than its all-time high of $33. The company has acquired Arena, which has a majority stake in Sal de la Puna project, and this will boost the company’s growth in the long-term.
Despite being a pre-revenue company, it has three major resources that can generate significant returns in the long term. LAC is one of the high potential EV charging stocks that offers a possibility of 50% upside and could more than double your money.
ChargePoint (CHPT)
There are multiple opinions about the future of ChargePoint (NYSE:CHPT), but if mass EV adoption happens, ChargePoint becomes highly relevant. Currently, EVs are a small part of the total vehicle sales worldwide, but increasing government incentives pushing towards EVs offer growth potential. ChargePoint already holds 65% of the market share, and there is a high expectation of expansion.
The drop could also be due to the growing dominance of Tesla in the charging space. But one big reason to bet on ChargePoint is its global presence. It has charging stations across several markets in the world while Tesla is only present in the United States. To assume that ChargePoint will become irrelevant in the future is irrational here. If you are looking for a single EV charging stock investment, ChargePoint is the one with massive upside potential.
The company is growing revenue quickly, but hasn’t achieved profitability yet. It will take a while before it reports a net profit. It’s worth noting that CHPT has managed to beat EPS expectations in the past four quarters, and the stock is moving steadily in the right direction.
While CHPT stock is trading at $8.22 today and is down 32% in the past six months, the company reported a revenue growth of 59% year over year in the recent quarter, with the gross margin was also up 23%. It may take sometime for the stock to pick up its pace, but it is trading at a discount now and is worth an addition to your portfolio.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
