How to invest in EV charging stations

EVs are taking to the streets, and that means drivers are looking for more charging options. The rapid rise of electric vehicles creates an opportunity for those willing to learn the tricks of the trade. Find out how you can invest in electric vehicle charging stations and play a role in the future of transport.

Why invest in electric vehicle charging stations?

If you’re noticing more electric vehicles on your daily commute, it’s not just you. Sales of battery electric vehicles hit another record in the second quarter of 2022, rising to 196,788 as total new vehicle sales fell 20%.

The share of electric vehicles in the US rose to 5.6% from 2.7% in the second quarter of 2021. Automakers are launching new electric vehicles with longer range, superior technology and zero emissions, giving drivers a reason to switch.

According to the PEW Research Center, 42% of Americans say they would consider getting an electric vehicle. The survey was conducted before the passage of the historic climate law and gives new incentives for the purchase of an electric vehicle. More interesting is the breakdown by age group.

  • 18-29: 55%
  • 30-49: 47%
  • 50-64: 34%
  • 65+: 31%

In addition, more than half of them live in urban areas. While it’s true that most EV owners charge at night, more and more people living in cities are renting. A new Harvard study shows that overall rental vacancy is at its lowest level since the mid-1980s.

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invest EV charging stations
Source: NMHC tables of 2020 American Community Survey microdata, US Census Bureau. Updated 7/2022

Younger generations are more likely to rent, and many apartment complexes have yet to install electric vehicle charging stations. Almost 50% of those under 30 rent, while 10% of those over 65 own rented accommodation.

Where electric vehicle charging stations are now located

Electric vehicles are expected to make up the majority of vehicles on the road by 2030. However, the most common reason Americans (58%) say they would not buy an electric vehicle is that they fear it won’t give them enough range.

While much is being done to allay this fear, there is an opportunity for companies to get involved while contributing to the future of transport (and making an extra profit).

The Biden administration has committed $5 billion over the next five years through the NEVI program to build a national network of electric vehicle charging stations.

Electrify America, a subsidiary of Volkswagen, is working to build a fast charging network across North America.

Automakers like Tesla are also building their own supercharging network to give their drivers the freedom to go anywhere. Meanwhile, many of the people in the above category (younger drivers looking to buy EVs) are looking for more convenient options on their daily routes.

For entrepreneurs, this represents an opportunity. And for those who don’t own a business but still want to get involved, there are opportunities to invest in electric vehicle charging stations.

EV chargers at Walmart Source: Walmart

How to invest in electric vehicle charging stations

To give EV drivers more options, you can install chargers in your business. It may be worth considering, especially if customers are staying longer. For example, a short stop (less than five minutes) might not be worthwhile, but for restaurants, entertainment venues, bars, clubs, malls, small businesses, and even workplaces, it’s a different story.

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Installing EV charging stations is an investment in your business. As EVs continue to gain market share, convenient charging options can help direct traffic with increased visibility.

Many popular digital map services (like Google Maps) now offer charging station location solutions, while others like Plugshare are specifically designed to locate them.

However, the availability of charging facilities for electric vehicles can boost business. There are over $2 billion in utility rebates and $60 million in state grants to get you started (see what incentives are available in your state here). Companies like ChargePoint make it easy for you with various charging options and valuable data management tools.

What about those who don’t own a business?

If you don’t own a business and still want to invest in EV charging, you can always choose to own a stake in any of the companies listed above. For example, if you buy shares in companies like Tesla (TSLA) or ChargePoint (CHPT), you can benefit from the expected massive growth in electric vehicles and its supporting factors over the next few years.

To gain exposure to the entire electric vehicle market, an ETF like KraneShares Electric Vehicles & Future Mobility ETF (KARS) holds stakes in companies like Tesla, ChargePoint, Nio (NIO), Albemarle (ALB), BYD, Rivian (RIVN), Lucid (LCID). ), Aptiv (APTV) and more.

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