How to invest in EV charging stations

Electric vehicles are taking to the streets, meaning drivers are looking for more places to charge. The rapid rise of electric vehicles creates an opportunity for those willing to learn the ropes. Find out how you can invest in electric vehicle charging stations and play a role in shaping the future of transportation.

Why invest in EV charging stations

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

The share of electric vehicles in the United States increased to 5.6%, from 2.7% in the second quarter of 2021. Automakers are launching new electric vehicles on the market with more range, superior technology and zero emissions , giving drivers a reason to make the switch.

According to information from the PEW Research Center, 42% of Americans say they are considering buying an electric vehicle. The survey was carried out ahead of the passage of the landmark climate bill, offering new incentives for buying an electric vehicle. What is more interesting is the breakdown by age group.

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

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

Source: NMHC Tables of American Community Survey 2020 Microdata, US Census Bureau. Update 7/2022

Younger generations are most likely to be renters, and many apartment complexes have yet to install EV charging stations. Nearly 50% of people under 30 rent, while 10% of people 65 and over do.

Where are the electric vehicle charging stations currently located?

Electric vehicles are expected to represent the majority of vehicles on the road by 2030. However, the most common reason Americans (58%) say they would not buy an EV is that they are afraid it will does not give them enough autonomy.

While much is being done to alleviate this fear, businesses have the opportunity to participate while contributing to the future of transportation (and making an extra profit).

The Biden administration has deployed $5 billion in funding over the next five years under the NEVI program to build a nationwide 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 allow their drivers to go anywhere. Meanwhile, many people in the above category (young drivers looking to buy electric vehicles) are looking for more convenient options on their daily commute.

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

how-to-invest-in-ev-1-charging-stations
EV Chargers at Walmart Source: Walmart

How to invest in EV charging stations

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

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

Many popular digital mapping services (like Google Maps) now offer solutions for finding charging stations, while others like Plugshare are specifically designed to locate them.

That being said, the availability of electric vehicle charging options can boost business. There’s over $2 billion in utility-provided rebates and $60 million in government grants to get you started (see incentives in your state here). Companies like ChargePoint make it easy with different charging options and valuable tools to help you manage data.

What about those who don’t own a business

If you don’t own a business and still want to invest in electric vehicle charging stations, you can always choose to own part of one of the companies listed above. For example, buying stocks in companies like Tesla (TSLA) or ChargePoint (CHPT) can expose you to the expected massive growth in electric vehicles and its supporting factors over the next few years.

To gain exposure to the broader EV 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.

FTC: We use revenue-generating automatic affiliate links. After.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

About Ellie Cohn

Check Also

The Rays’ options at first base in 2023

This story is from Adam Berry’s Rays Beat newsletter. To read the full newsletter, Click …