Getting Charged Up for EV Charging Stations
Pain points, like the need for more EV chargers, present investment opportunities
We have shared many times that pain points can offer wonderful investment opportunities, and we see that unfolding once again with EV charging stations. We explain more below in a piece that we penned for Nasdaq as part of its World Reimagined series, but on the back of this piece, we are debuting our EV charging station investment model to help investors capture the opportunity. And true to form for us at Tematica, while many are focusing on companies that are “planning to be there in X years“, we prefer to focus on companies that are meeting the needs of the evolving landscape right now. This new EV charging station model joins a proud and growing list of thematic models and indices from us here at Tematica.
Email us at info@tematicaresearch.com to learn more about this particular model as well as our other thematic models (Digital Privacy, Luxury Buying Boom, Digital Infrastructure, …. etc.) and of course, our indices.
- Team Tematica
As EV Charging Stations Expand, What Companies Are Set to Benefit?
In the March 2022 quarter, Tesla (TSLA) produced 305,407 electric vehicles (EVs), delivered 310,048, and confirmed that its current capacity could produce more than 1.05 million EVs per year even as capacity in its Berlin and Texas factories are ramping production. In recent weeks, other EV companies ranging from Nio Inc. (NIO), XPeng (XPNG), and Li Auto (LI) reported March quarter deliveries that were up significantly year-over-year as have other traditional Internal Combustion Engine (ICE) focused auto manufacturers including Ford Motor (F), General Motors (GM) and Volkswagen (VWAGY). We’re even seeing luxury car makers such as Ferrari (RACE) working on electrification efforts with its first EV set to arrive in 2025.
Simply put, we are seeing an acceleration in the adoption of EVs, which accounted for 8.3% of global light-vehicle sales in 2021. IEA predicts that the world will have 300 million electric cars on the road by 2050, accounting for more than 60% of new car sales.
With most industry transformations, there are pain points, and the need to charge EVs is currently one of them. Even with ICE-powered vehicles, consumers need to fuel up depending on the nature of their trip or how long they’ve been out and about. With EVs, refueling or re-charging has been one of the pain point items cited by consumers who have been hesitant about switching from a traditional vehicle to an EV, especially those outside of metropolitan areas. However, pain points for some can provide powerful investing opportunities for others.