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3 Electric Vehicle Charging Stocks That Will Benefit from the Infrastructure Bill

·5 min read

The EV charging space is expected to receive a significant boost, with $7.5 billion allocated for EV charging networks in the infrastructure bill recently passed by the U.S. Senate. Consequently, we think well-known EV charging stocks ChargePoint (CHPT), EVgo (EVGO), and Blink Charging (BLNK) should benefit considerably. So, read on for a closer look at these companies.

The major stock market indexes soared recently on the U.S. Senate’s passage of a $1 trillion bipartisan infrastructure bill on August 10. The bill includes $7.5 billion in funding for electric vehicle (EV) charging networks. However, many consider the budget insufficient, and a group of 28 U.S. House Democrats have asked for $85 billion in funding for EV charging infrastructure.

Nevertheless, the bill's passage in the Senate is seen as a significant step toward President Biden’s goal of the construction of 500,000 EV charging stations in the U.S. over the next decade. Furthermore, the industry is expected to grow quickly because it plays an essential role in contributing to the worldwide adoption of EVs to replace internal-combustion vehicles. According to an Allied Market Research report, the global EV charging system market is expected to grow at a 26.2% CAGR over the next nine years.

Prominent EV charging stocks ChargePoint Holdings, Inc. (CHPT), EVgo, Inc. (EVGO), and Blink Charging Co. (BLNK) are expected to benefit significantly from the proposed spending.

Click here to checkout our Electric Vehicle Industry Report for 2021

ChargePoint Holdings, Inc. (CHPT)

U.S. EV charging networks and charging solutions provider CHPT provides multiple Web-based portals for charging system owners, fleet managers, drivers, and utilities. It has more than 4,000 commercial and fleet customers and has delivered more than 87 million charging sessions.

CHPT completed the acquisition of ViriCiti on August 11. It is a leading provider of electrification solutions for eBus and commercial fleets. The move is expected to expand the company’s fleet-solution portfolio of hardware, software, and services by integrating information sources to optimize electric fleet operations.

The company is expected to release its second-quarter earnings results on September 1. For its fiscal first quarter, ended April 30, 2021, CHPT’s total revenue increased 23.6% year-over-year to $40.51 million. Its net income came in at $82.29 million, versus a $30.10 million loss in the year-ago period. Also, its loss per share decreased 65.9% year-over-year to $0.84.

CHPT’s revenue is expected to increase 34.7% year-over-year to $197.31 million in its fiscal year 2022. In addition, the company’s EPS is expected to increase 93.4% in the current year and 13.7% next year. Also, the stock has gained 20.3% over the past three months to close yesterday’s trading session at $25.18.

EVgo, Inc. (EVGO)

With more than 800 fast-charging locations, EVGO is the nation’s largest public fast-charging network for EVs. Its fast-charging network is powered by renewable energy, and it serves more than 250,000 customers, including EV drivers, business owners, policymakers, fleets, and automakers.

On July 27, EVGO unveiled eight new EVgo public fast chargers for Lot 29 in Santa Monica, California. The company’s CEO, Cathy Zoi, said, “EVgo is bringing new stations online every week with the help of partners, like GM and the Energy Commission for this station, and city officials and utilities around the country.”

EVGO’s total revenues increased 61.8% year-over-year to $4.78 million for the second quarter, ended June 30, 2021. The company’s gross loss for the quarter decreased 6.5% year-over-year to $2.77 million. Also, its total assets were $199.32 million compared to $182.14 million for the period ended December 31, 2020.

Analysts expect EVGO’s revenue to increase 64.4% year-over-year to $21.45 million in its fiscal year 2021. The company’s EPS is expected to increase 52.9% next year. In addition, the stock has gained 19.2% since hitting its 52-week low of $8.77 on August 4, to close yesterday’s trading session at $11.01.

Blink Charging Co. (BLNK)

As an owner, operator, and provider of EV charging equipment and networked EV charging services, BLNK offers both residential and commercial EV charging equipment. The company’s EV chargers are deployed across the United States at numerous transit/destination locations, including airports, car dealers, transportation hubs, and workplace locations.

BLNK announced a five-year agreement with two five-year extensions with Greenlight Communities, LLC, an Arizona-based residential property developer, on August 5. After the installations are completed, there are expected to be a total of 58 BLNK-owned EV charging stations at Greenlight multifamily residential communities across the Phoenix metro area in Arizona.

The company’s product sales increased 156.4% year-over-year to $3.27 million for the second quarter, ended June 30, 2021, while the revenue from the charging service segment came in at $586,173, up 571.8% year-over-year. BLNK’s gross profit was $644,088, representing a 55.6% year-over-year rise. Its total assets came in at $246.62 million, versus$33.99 million for the period ended December 31, 2020.

For its fiscal year 2021, BLNK’s revenue is expected to increase 99.2% year-over-year to $12.41 million. In addition, the company’s EPS is expected to increase 21.4% in its fiscal year 2022. Also, the stock has gained 18.6% over the past three months to close yesterday’s trading session at $34.09.

Click here to checkout our Electric Vehicle Industry Report for 2021

CHPT shares were trading at $24.52 per share on Friday morning, down $0.66 (-2.62%). Year-to-date, CHPT has declined -38.82%, versus a 19.95% rise in the benchmark S&P 500 index during the same period.


About the Author: Manisha Chatterjee


Since she was young, Manisha has had a strong interest in the stock market. She majored in Economics in college and has a passion for writing, which has led to her career as a research analyst.

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