The electric vehicle industry is creating a huge shift in the automobile sector. Countries across the world are transitioning from gas-powered transportation to EVs, which will make an impact on our future environment. Worldwide governments are trying to speed up the process of transition by providing initiatives to the automakers.
And with the production of EVs will come an increased demand for EV charging infrastructure. As a by-product of the EV industry, it is a solid industry in itself. Smart investors know that now is the time to load up on EV charging stocks, specifically these three.
Tesla (TSLA)
As an industry leader, Tesla (NASDAQ:TSLA) has spearheaded and transformed the way we view EVs. The company has a full self-driving technology at the center of its growth strategy. To ensure that every Tesla owner has access to quick and convenient charging infrastructure, the company built the largest EV charging network.
It recently converted this cost-bearing service into a revenue-generating service by expanding its charging network. Tesla has partnerships with several EV makers for use of its charging networks. While it may not contribute much to this year’s revenue, expect a significant increase in charging networks profits within five years.
Tesla is also working on Robotaxis, although it could take time to become a reality. Financially, Tesla has impressed investors repeatedly. In the recent quarter, the company reported $25 billion in revenue and a net income of $2.7 billion, up 20% from the same period last year. It also hit a record Q2 deliveries of 466,140 units.
Superchargers and station numbers increased by 33% in Q2. Also, its partnership with EV makers including Nissan (OTCMKTS:NSANY) will drive future growth. TSLA stock is trading at $254, up 135% year to date. It was trading close to $108 at the beginning of the year and steadily moved upwards. The company also plans to enter India, a potentially huge market.
Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) is a highly undervalued EV charging stock to consider. The company recently announced that it will roll out a 240-kilowatt direct current fast charger which features the North American Charging Standard connector (NACS) as well as the Connected Charging System.
The NACS standard was introduced by Tesla but is now used by Blink Charging for their ports. Tesla has already made the chargers open-source. Other companies can use the standard to manufacture their own products giving Blink an early-mover advantage in the industry.
It also signed an agreement with AAA to provide electric vehicle products to the affiliated service providers across all 60,000 national locations. This deal gives Blink opportunity for a larger footprint.
BLNK stock is trading at $6 today, much lower than the 52-week high of $26, but also indicating tremendous upside potential. Although the stock’s movement is unimpressive, it offers an attractive entry point.
In the first quarter, the company saw a revenue surge of 121%, hitting $21.7 million while the service revenue was up 216%, achieving $4.8 million. Even the gross profits were up 186% year over year to $4.5 million. The company is set to report the Q2 results on August 8 when the stock could show a possible upside.
ChargePoint (CHPT)
ChargePoint (NYSE:CHPT) was one of the special purpose acquisition companies that took time to grow. With potential to expand over time yet unprofitable currently, the risk-return ratio is quite high.
On the bright side, CHPT is an innovative business. The company specializes in alternative current Level 2 chargers which are used in residential and commercial spaces. The chargers differ from other chargers with a presence across worldwide countries.
With EVs becoming more mainstream, ChargePoint is set to benefit in the long term. Although it’s been unprofitable with negative cash flow, CHPT has managed to grow the charging network in recent years. Boasting 48,000 charging points across the globe, ChargePoint can have a strong advantage over other EV charging companies.
CHPT stock is trading at $8.12 today, down 34% in the past six months. It is down 10% year to date, making it a good entry point for investors. With a market cap of $2.87 billion, the stock looks fairly valued with massive upside potential. As a small company that could take a few more years to show profit, but it could likely double your money down the road.
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.
