The electric vehicle boom is accelerating.
Along with President Biden’s pledge to reduce U.S. emissions by up to 52%, he wants up to 500,000 charging stations set up around the country.
That’s great news for electric vehicle owners and investors. According to Chargepoint (NASDAQ:CHPT) President and CEO Pasquale Romano:
“By establishing grant and rebate programs for state and local governments, Biden’s plan will increase private sector investment in EV charging infrastructure across the nation, an approach that is already driving investment today.”
While you can always buy EV stocks, like Tesla (NASDAQ:TSLA) or Nio (NYSE:NIO) on the news, another option is to pick up EV charging station stocks, too. After all, we’ll need plenty of those to fuel EVs.
The Department of Transportation and the Department of Energy are pushing forward with charging station development. Major auto companies including Daimler (OTC:DMLRY), Volkswagen (OTC:VWAGY), General Motors (NYSE:GM), Ford (NYSE:F) and BMW (OTC:BMWYY) are electrifying their fleets. Plus, countries all over the world want millions of electric vehicles on the roads as soon as possible.
EV Charging Stocks to Buy: Blink Charging (BLNK)
The last time I weighed in on Blink Charging, it traded around $42 a share. That was on April 1. Since then, BLNK stock has pulled back to $37.35, where weakness is a buying opportunity for a few key reasons. For one, after finding triple bottom support around $35, the stock just started pivoting higher. From here, I’d like to see an initial test of prior resistance around $59.
Two, governments all over the world want millions of electric vehicles on the roads. Major auto companies are moving to an all-electric future. Consumer demand is rising. That ties directly to three: for EVs to run, we’ll need plenty of charging stations all over the world.
Four, as I noted in early April, company growth appears strong. In its most recent quarter, fourth-quarter revenue jumped 250% year-over-year (YOY) to $2.5 million, up from $700,000. In addition, 2021 revenue increased by 121% to $6.2 million from $2.8 million year over year.
I’ve also previously weighed in on Chargepoint stock, which traded around $28 on April 1. At the moment, it’s just beginning to pivot from triple bottom support as well.
From here, I’d like to see a near-term test of at least $32. After all, it’s tough to bet against a company like CHPT.
Alongside Blink Charging, Chargepoint is another industry leader. Granted, fourth quarter revenue did fall from $43.2 million to $42.4 million year over year. However, gross margins did improve to 21% from 20.4% year over year.
Plus, going forward, CHPT does expect to post first quarter revenues of between $195 million and $205 million. The mid-point, according to the company, represents 37% year over year growth.
Tortoise Acquisition II (SNPR)
On April 1, I also mentioned SNPR, as it traded around $11. While the stock has since pulled back to $10.39, I’d see weakness here as a buying opportunity as well. Going forward, I’d like to see it around $15, especially with its merger with Volta Industries.
First, as I mentioned in early April:
“According to Volta’s investor deck, the company expects to increase its charging stations from 1,507 in 2020 to over 26,00 by the year 2025 (Page 47). It also expects to increase revenue from $25 million in 2020 to $826 million by 2025. That’s a five-year compound annual growth rate (CAGR) of 100%.”
Second, Volta continues to expand across the country. Most recently, it announced a partnership with Macy’s (NYSE:M). So far, the two have about 100 stations set up at 40 locations. Macy’s says it will increase that by up to 50% just this year.