Profit From the EV Charging Market with These 3 Stocks

Stocks to buy

The electric vehicle (EV) charging market is one of the fastest-growing segments in the transportation sector, and the increasing adoption of EVs, supportive government policies, and technological advancements are some of the key drivers for this market. Among the different types of EV chargers, such as slow, fast, and ultra-fast, the fast chargers are expected to witness the highest growth rate in the coming years. Fast chargers can reduce the charging time from hours to minutes and are suitable for long-distance travel and public charging stations. However, they also require higher power and cost more than slow chargers.

In this article, we will discuss three EV charging stocks that investors can buy to capitalize on this booming market.

Beam Global (BEEM)

Source: shutterstock.com/Nixx Photography

Beam Global (NASDAQ:BEEM) is a provider of innovative solar-powered EV charging solutions that do not require any grid connection or installation. The company’s flagship product is the EV ARC™ (Electric Vehicle Autonomous Renewable Charger), which is a self-contained unit that can generate and store enough solar energy to power up to five EVs per day. Beam also offers the Solar Tree®, which is a solar-powered parking structure that can charge multiple EVs simultaneously.

Beam’s annual revenue doubled in 2022 and is on the to more than doubling in 2023. While the company’s revenue figures may still be small, there are many things to get excited about. For example, the company also secured several orders and deployments from various customers, such as the City of San Diego. These prospects make Beam an interesting contender in the EV charging race.

Tesla (TSLA)

Source: Rokas Tenys / Shutterstock.com

Tesla (NASDAQ:TSLA), well known for its sleek electric cars, is not only a leading EV manufacturer but also a dominant player in the EV charging market. The automaker essentially created the basic infrastructure for electric vehicle charging. These days, Tesla owns and operates the largest global fast-charging network in the world, with over 50,000 Superchargers across 14 countries. Further, more and more EV makers are signing up to use Tesla’s vast charging infrastructure, which could imply the automaker’s superchargers are on their way to becoming an industry standard. Texas, for example, approved a plan to require EV charging companies to include Tesla’s plug if they want to be eligible for federal funds.

Tesla’s shares have certainly seen better days. Since October, shares have plummeted more than 21%. This could provide a decent buying opportunity for investors interested in allocating to the EV charging market.

BYD (BYDDF)

Source: J. Lekavicius / Shutterstock.com

BYD (OTCMKTS:BYDDF) is a Chinese EV manufacturer that has risen to overtake Tesla as the world’s largest EV maker by sales in 2022. Outside of having a diversified portfolio of EVs, ranging from passenger cars to buses and trucks, BYD also has a strong presence in the global EV charging market. Instead of building and relying upon its own charging infrastructure, BYD has taken the partner approach. In particular, the Chinese automaker has created a number of charging hubs with Shell (NYSE:SHEL) in both Europe and China.

While the EV and semiconductor sectors have continued to be bright spots amidst China’s economic slowdown, BYD shares are only up 23% since the start of the year. As a result, BYD is trading at 19.0x forward earnings and 9.8x forward EBITDA, which makes it cheaper than its main competitor, Tesla.

On the date of publication, Tyrik Torres did not have (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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

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