Is the Sell-off Done in Independent EV Charging Stocks?

١٩ ديسمبر ٢٠٢١

After an eventful 2021, with EV manufacturer speculation at record highs despite recent deflation, the three most visible independent EV charging station stocks (CHPT, BLNK, VLTA) have had a mostly volatile year with a downward bias after the beginning of the year. Although valuations can still be considered rich given the YTD performance of these three companies and ongoing multiple contraction, the long term growth potential and regulatory tailwinds indicate growth from here is all but guaranteed, especially since the EV manufacturer market is expanding and the expectation of a single manufacturer covering the convenience charging needs of all of America and the world may seem farfetched. Range anxiety of the consumer will presumably mandate EV charging neutrality.

The current market share leader of the three, CPHT, seems to be adequately executing a blank check philosophy in pursuit of growth given recent quarterly losses and with the highest sales, some of that growth is undoubtedly priced in given the current market cap. Given the energy revolution taking off and the massive total addressable market, is it possible there will be room for all involved to grow?

Of the three mentioned in this post being all near critical support levels, which would you count on to capture most of the growth of this upcoming sector in 2022? Or has the bottom yet to come?