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3 EV Stocks with Huge Potential for Growth in 2021!

18 Feb 3 EV Stocks with Huge Potential for Growth in 2021!

The Global Electric Vehicle Charging Market is poised to reach USD 63.9 billion by 2025, growing at a CAGR of 32.6 percent, according to a report by Grand View Research, Inc. The growth of this industry is a result of the initiatives by governments around the world, in the form of tax rebates, grants, and subsidies for adoption of renewable and more environment friendly options for transportation. Unlike conventional vehicles which can only replenish their fuel at specific public locations, Electric vehicles can be charged at home or commercial charging stations.

Most recently the Joe Biden government accorded utmost priority to climate change and has made clear its commitment to improve fuel economy standards, encourage rebate programs for vehicle trade-ins, provide tax credits, stimulus programs and a $400 billion investment in clean energy.

However, the limitation of sufficient charging capacity to cover long distances discourages the use of these vehicles. There is an increased focus on research and development activities, especially in the passenger car sector, to improve infrastructure and supply equipment and establish EV chargers at easily accessible public places, to allow long distance travel as well. Range anxiety which acts as the biggest impediment for the market at present, will soon be a thing of the past, with Companies racing to develop connectivity modules.

A report by McKinsey estimates that by 2025, there will be more than 350 EV models introduced into the market, with ranges of 200 miles. However, a lack of charging infrastructure could hamper the growth in the market. The report also highlights the fact that besides price and driving range, lack of access to charging stations is the third most serious barrier to EV. However there have been a gradual decline in prices and improvement in driving range and companies are making a concerted effort to provide the requisite charging infrastructure. Furthermore, the total energy demand for electric vehicles in China, United States and European Union alone will reach 280 billion kilowatt-hours by 2030.

Image Source: Mckinsey

There has been an increasing interest in EV’s owing to environmental concerns, which has prompted leading automobile makers such as BMW, Daimler, Ford, and Volkswagen to announce an investment plan for deployment of 400 charging sites across Europe, China and Japan are at the forefront of adopting this technology owing to increased awareness and emerging technology.

 Blink Charging (NASDAQ: BLNK)

Market Cap: $1.99B; Current Share Price: 47.72 USDChart
Data by YCharts

Blink is the second largest operators of Electric Vehicle charging stations in the U.S, committed to reducing greenhouse gas emissions released by transportation. The Company has over 24,000 charging stations across the U.S. The primary business of the company is Blink EV Charging Network, EV Charging or Supply Equipment (EVSE) and Charging Services.

The Blink Network is a proprietary cloud-based network that keeps track of all EV charging stations connected to the network along with their charging data. The service allows for the remote monitoring and management of EV charging stations, payment processing, EV charging station location directions, availability, and applicable fees and caters to a host of interested parties such as businesses, property owners and property managers.

Image Source: Company

The Company has strategic partnerships with airports, automobile dealers, healthcare /medical institutions, hotels, residential facilities, parks and recreation areas, parking lots, religious institutions, restaurants, retailers, schools and universities, stadiums, supermarkets, transportation hubs, and workplace locations. Some of its most prominent partners and clients include Migdal, Enersys, Google, Facebook, Whole Foods and McDonald’s to name a few.

Blink which was initially known as “Car Charging Group Inc” on its inception in 2009, acquired three EV charging service providers namely 350Green and Beam Charging in 2013, to become the largest EV charging service provider in the U.S. Blink network and the Blink EV charging assets were acquired from ECOtality, Inc. The name of the Company was changed to Blink Charging Co. in 2017.

The Company has a series of firsts to its credit, including the introduction of offering kilowatt-hour (“kWh”) pricing, reducing time-based EV charging increments, capturing fleet vehicle odometer information and offering remote start functionality. Blink is working on pioneering designs such as Media charging stations, cable management, inductive charger bumper technology and shipping EV Charging containers.

EVBox (NYSE: TPGY)

Market Cap: $1.19B; Current Share Price: 27.13 USDChart
Data by YCharts

EVBox is the EV Charging leader in Europe, committed to installing one million charging ports by 2023. With more than 190,000 charging ports across 70 countries, the Company has the largest installed base of EV Charging solutions and provides a wide range of solutions for electric charging including hardware and enterprise software solutions. Europe is at the forefront of electric vehicle adoption with more than 50 percent penetration in some countries as against less than 5 percent penetration in the U.S. A leadership position in this market places the Company in a very advantageous position.

The Company’s product range consists of award-winning commercial chargers, DC Fast Chargers, Residential chargers and charging management software and services. Everon, the Company’s open architecture SaaS platform offers charging management solutions that support both EVBox and third-party hardware. In addition, it provides monetization opportunities for charging station owners, dynamic load management and easy integration with other software.

Image Source: Company

The Company will soon become a public company through a special purpose acquisition deal with TPG Pace Beneficial Finance. The transaction will help EvBox attain significant growth capital and expansion opportunities in North America and Europe. ENGIE will retain more than 40 percent ownership in the Company.

ChargePoint (NYSE: SBE)

Market Cap: $1.47B; Current Share Price: 37.33 USDChart
Data by YCharts

ChargePoint’s aim is to offer the best electric vehicle charging experience, which it has been relentlessly pursuing for over a decade. The Company is the leader in level 2 charging networks with more than 70 percent market share, having delivered more than 88.3 million charges till date and has over 60 percent of Fortune 500 companies as its customers. In addition, it has 175 partners aiding it in its efforts to provide smooth transition for those making a shift to electric mobility. The Company’s operates in North America and Europe and provides expanded access to more than ten-of-thousands of charging places through roaming agreements and integrations.

The Company’s provides comprehensive electric charging solutions encompassing network, hardware, software and services to various industries and segments such as fleets, apartments, construction and utilities. In November 2020, ChargePoint announced an agreement to support Volvo Cars retail networks across the United States and Canada and enabling Volvo customers to buy the ChargePoint Home Flex home charger. The agreement will provide Volvo car drivers access to 115,000 ChargePoint stations, besides additional charging places through roaming agreements. The Company has also tied up with Apple CarPlay to provide charging information directly from their vehicle’s infotainment system.

Image Source: Company

The Company is the first EV charging provider to have been ENERGY STAR® certified for energy efficiency and is building a robust patent portfolio. With over 20 awards to its credit, for its technology from the likes of World Economic Forum, Goldman Sachs, Electrek and CNBC, the Company has also received laurels for environmental achievement from the United Nations, Global Cleantech, Climate Change Business Journal and Acterra to name a few.

ChargePoint will soon debut on the stock exchange through a special purpose acquisition (SPAC) deal with Switchback Energy. SBE had originally called for a shareholder meeting for stockholders to vote in approval of the business combination between ChargePoint and switchback. The meeting, which was earlier scheduled for February 25, 2021 has now been adjourned to allow more time to reach the required quorum. The Company has announced that it has received favourable votes from 99.9% of Proxies received, however since 5% of the outstanding shares submitted proxies to vote, the necessary quorum of a majority of the outstanding shares was not present.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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References

https://www.grandviewresearch.com/press-release/global-electric-vehicle-ev-charging-infrastructure-market

https://www.technavio.com/report/global-electric-vehicle-charger-market-analysis-share-2018

https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/electrifying-insights-how-automakers-can-drive-electrified-vehicle-sales-and-profitability

https://projects.iq.harvard.edu/files/energyconsortium/files/rwp18-026_lee_1.pdf

https://in.finance.yahoo.com/news/switchback-energy-acquisition-corporation-adjourns-173800289.html

https://www.chargepoint.com/about/news/chargepoint-and-volvo-cars-team-offer-charging-solutions-us-and-canadian-drivers/

https://www.chargepoint.com/

https://news.evbox.com/en-WW/193402-evbox-group-to-become-public-company-via-business-combination-with-tpg-pace-beneficial-financ

https://www.blinkcharging.com/?locale=en

https://d1io3yog0oux5.cloudfront.net/_ca3a24965390b7a5313193a3374ec509/blinkcharging/db/60/1289/pdf/InvestorPresentation_Jan_2021_LR-NoOEM.pdf

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