How to Invest in EV Car Charging Stations

As innovators consider the preferences of millennials and Generation Z and their widespread acceptance of global efforts to reduce greenhouse gas emissions, Electric Vehicles (EV) are becoming interestingly popular.

The growing popularity of electric vehicles (EVs) has made the electric vehicle pioneer, Tesla, the world’s largest automobile manufacturer.

Over the next ten years, it is predicted that over 18 million EVs will be registered in the United States, thanks to the efforts of the Biden administration. Some may see EVs as a missed investment opportunity. However, the real opportunity has only begun: electric car charging stations.

Clearly, charging infrastructure is required to accommodate the surge of electric vehicles on the road. Potential buyers are reluctant to purchase electric cars since there aren’t enough charging stations, which creates a classic chicken and egg problem.

While the United States now has 1.6 million electric vehicles, public charging stations have fallen far behind, with just 40,000 charging stations registered with the United States Department of Energy.

Compared to the roughly 150,000 pump stations in the United States and an even more significant fraction in contrast to the ambitious 500,000 charging station goal set by the Biden administration, the demand is ever-increasing.

How to Invest in EV Car Charging Stations
Black Electric Vehicle (EV) Charging at a Station

It is already anticipated that EV charging infrastructure investments would be worth more than $13 billion over the next five years.

How to Invest in Electric Vehicle (EV) Charging Stations in 2022

There are various opportunities to help you prevent climate change through your financial investments. After all, you can invest in your favorite industry and earn a profit by choosing ESG investments rather than traditional investments.

So what is the point of investing in EV charging? Believe it or not, if you’re seeking consistent growth and high returns in the future, investing in electric car charging stations is the best approach to diversify your investment portfolio.

If you have discovered the market trends and forecasts in the United States and throughout the world that electric car charging stations are the future of investment, you shouldn’t think twice before jumping in with both feet.

However, keep in mind that investing in electric vehicle charging stations is not that simple. There are various ways to generate revenue, but the investment plan you choose must be the best fit for your investment size.

Read Which States Offer Incentives for Electric Cars in the USA?

Invest in Traditional Charging Stations

To make an initial investment in electric car charging stations, you should consider creating an appropriate infrastructure.

You can invest in charging network firms in the same way that popular gas station networks charge clients for their services, offering a consistent source of money.

However, traditional charging networks have a significant upfront cost. But since the station will continue to profit from its customers, you will receive regular revenue.

One typical approach is to charge customers based on the amount of energy (for example, $0.10/kWh). You also have the option to set your mark-up (for example, $0.35/kWh) for your services. If a car drives up and wants to charge its battery for 25 kWh, the equation would be:

25 kWh x $0.45/kWh = $11.25.

If you prefer to charge a price based on time, you can use a flat hourly rate (for example, $3.5/hour) for your services. If the station charges at 8 kW and the automobile requires 30 kWh to recharge, the calculation is 30 kWh/8kW = approximately 3.75 hours.

From there, all you have to do is multiply the amount of time by your hourly rate to receive an estimate of your revenue: 3.75 hours multiplied by $3.5 per hour will be $13.125.

Additionally, you can sign an agreement regarding billing rates with your consumers.

Use a blanket technique where everyone pays the same amount or a stratified approach in which some customers pay less than others (i.e., rewards members).

The firm or organization you partner with will determine your initial investment. Some companies may allow you to purchase an interest in their electric car charging station projects for a lower minimum than their competitors.

Remember that the key to success, in this case, is thorough market research.

Read What is Tesla Destination Charging?

Invest in Charging Equipment Companies

You do not have to invest in the actual brick and mortar of an electric car charging station to get the investment’s financial benefits.

Aside from the infrastructure, numerous additional components are used in constructing a functional car charging station. It is possible to contribute your assets in these components, receive a significant amount of revenue, and increase your income as the sector expands.

Additionally, some firms are developing home car-charging technology and public charging equipment. This is because top electric vehicle manufacturers provide extended battery runtimes, sufficient for an average work-to-home journey.

Due to this, office and home chargers will become more common than public charging stations in the upcoming years. This research has data gaps due to a lack of knowledge regarding additional electric vehicle improvements. Nevertheless, the market is highly profitable and ideal for entry-level investors.

Invest in Emerging EV Technologies

Investing in ultra-fast chargers is another area to consider if you’re seeking to make a profit from your electric car charging station business. If the predicted growth in electric vehicles becomes a reality, this will be the next big thing in transportation.

Nothing is more frustrating than spending hours at a charging station to refuel autos for a few miles. Let’s face it, next to affordability and convenience, the ability to refuel an internal combustion engine vehicle in seconds is a significant advantage over electric cars.

As a result, companies are developing ultra-fast charging technology, which will apply in future charging stations to facilitate a seamless need-based shift from internal combustion engines to electric automobiles.

Porsche, a well-known electric vehicle manufacturer, is an excellent example of this type of investment potential. Porsche has already begun utilizing ultra-fast chargers for its Porsche Taycan vehicle, introduced in 2019.

An ultra-fast charger can deliver 350kW of electricity and provide a car with the ability to drive for 20 minutes with a charge of less than a minute. This equates to almost 400 miles of driving after only 20 minutes of charging the vehicles.

Within 4 minutes, the charger can supply around 60 miles of driving range, and it can charge the automobile up to 80% of its capacity in just 15 minutes.

Considering that only a limited number of automobiles can currently receive electricity from ultra-fast chargers, the development of this technology is entirely dependent on quick technological breakthroughs.

However, as electric vehicles become the norm, this technology is destined to take over in a short period.

Invest in Electric Vehicle Stocks

The rapid increase in the number of electric cars (EVs) on the road has led to an unprecedented demand for the charging system to support households and investors. 

Electric vehicle chargers are devices that offer charging to battery-operated automobiles and, more specifically, to the electrical source that is used to charge the vehicle’s batteries.

The market for electric vehicle chargers was worth $3.8 billion in 2019. It is predicted to increase at a compound annual growth rate (CAGR) of 26.8% to reach $25.5 billion by 2027.

EV charging stocks have been pushed into the limelight as a viable alternative to profit from the inevitable rise of car electrification worldwide.

Charging stocks are generally split into two categories: companies that provide charging station technology and software (ChargePoint, WallBox, Tritium, Beam, and EVBox) that develop charging stations (EVgo, Volta, and Allego).

Even though developing stations involves a significant amount of capital, station owners can quickly turn a profit once demand from electric vehicle owners increases.

Most electric vehicle startups went public in 2021, and Allego and Tritium are projected to go public in 2022 through SPAC mergers.

PG Pace Beneficial Finance Corp. and EVBox Group were set to unite but then mutually agreed to terminate their agreement in December 2021.

How to Invest in EV Car Charging Stations
How to Invest in EV Car Charging Stations

Best Electric Car Chargers Stocks to Buy and Watch NOW

ChargePoint Holdings (CHPT)$5.9 Billion Market Capitalization-53% Annual Return
Blink Charging Co (BLNK)$1 Billion Market Capitalization-41% Annual Return
EVgo (EVGO)$2.6 Billion Market Capitalization-6% Annual Return
Volta (VLTA)$1 Billion Market Capitalization-41% Annual Return
WallBox NV (WBX)$2.5 Billion Market Capitalization71% Annual Return
Beam Global (BEEM)$153 Billion Market Capitalization71.5% Annual Return
Allego (SPAQ)$566 Billion Market Capitalization1% Annual Return
Tritium (DCRN)$492 Billion Market Capitalization2% Annual Return

Wondering how to invest in EV stocks? Investing in stocks with any amount of money is easy with Public, a social investing site that allows you to view what other people are investing in.

More Ways to Invest in EV Charging Stations in 2022

Along with providing financial support for the infrastructure or technology required for electric vehicle charging stations, there are numerous other opportunities to invest in electric vehicle charging stations.

  • Invest in firms developing software systems for electric vehicle charging stations to charge every car to its maximum capacity while also processing payments from clients.
  • Similarly, you can develop apps to assist electric car drivers in locating charging stations near their homes or workplace.
  • Utilize your capital to invest in advanced developing technologies like smart charging and wireless car charging systems.
  • Invest in creative ideas that help improve the experience of car owners who drive to shopping malls, spas, libraries, and other similar facilities.

Best Electric Car Charging Stations Companies for Investment in 2022

Now that you’ve learned about the various ways to invest in electric vehicle charging stations, it’s time to pick the most suitable company to put your money to work.

The most well-known companies developing electric vehicle charging station technology or similar infrastructure are listed below.

These companies are also working to introduce new ultra-fast charging technologies and home charging equipment.

The companies include:

  • Tesla
  • Qingdao TGOOD Electric Co. Ltd
  • Blink Charging Co.
  • ChargePoint Inc.
  • Tritium
  • Driivz

Related electric vehicle articles:

Final Thoughts

The world is changing for the better. We as Americans must invest in EV car charging stations and infrastructure to accelerate the transition to a healthier and greener future—just like we did in the past by investing in rural electrification, railroads, and highways to improve quality of life and build a more equitable society.

There is a constant demand for EV charging services across the United States, as the number of electric vehicles on our roads is growing at an alarming rate.

Due to the tremendous demand for the service, making money from an EV charging business is now easier than ever before.

As the demand for EVs continues to rise, consumers have started to make traveling decisions according to the availability of charging stations. So, if you want to make passive income, look out for areas that aren’t prepared to attract this particular demographic.

It is important to note that the market estimates for the industry’s profitability are legitimate and favorable for investments.

Regardless of whatever investment option you are considering, make sure to thoroughly research before investing in electric car charging stations. This will ensure that you receive the most value for your money.

If you enjoyed reading this article, share it with your friends, colleagues, or someone planning to invest in EV. Do you think we missed some potential investment opportunities? Write to us in the comments below.