The EV Charging Infrastructure Market Is Estimated To Be Worth $60 Billion

According to UBS, investors will benefit more from the sustained use of electric vehicles in the United States than just automakers.

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The development of an electric vehicle charging infrastructure, according to analyst Shneur Gershuni, creates a $60 billion opportunity for investors to wager on the shift away from fossil fuels.

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"We believe a new secular growth window is being created by the convergence of evolving consumer and corporate attitudes in favor of decarbonization and government support for Energy Transition/Efficiency. One of the pillars of this subject, in our opinion, is the adoption of EVs and the development of the charging infrastructure, the letter stated.

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While there have been an increasing number of electric vehicle charging stations across the nation, the buildout will need to quicken to meet the government's transition objectives.

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In general, a considerable expansion of public charging stations (+50k a year vs. last three year average of 20k a year simply to make the Biden Administration's aim of 500k by 2030) would be required to reach UBS's 2030 EV penetration prediction of 19%, the note stated.

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Unlike a real estate investment trust, there is presently no pure way to invest in a national charging network, although there are businesses that are involved in the supply chain or are vying to join the network.

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Tesla is one of the companies that stands to gain from the continuous growth of electric automobiles. Despite owning its own network of charging stations, the manufacturer recently committed to making at least 7,500 of them interoperable with other EVs by the end of 2024.

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Tesla's price has already recovered more than 60% in 2023 following a difficult 2022 that saw tech companies struggle and CEO Elon Musk sell shares to finance his takeover of Twitter.

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ChargePoint and Blink Charging are two companies that specialize in chargers and may profit from the next wave of EV adoption. UBS does not rate those businesses, however it does rate Wallbox as a buy.

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With a market valuation of little over $1 billion, Wallbox is a modest business with headquarters in Barcelona. Nevertheless, in 2022, production at a factory in Texas began, which may support future expansion. The price of Wallbox's stock has increased by more than 70% since the year's beginning.

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UBS also made note of the possibility that some utility companies would gain from the increased infrastructure spending. The company gave Sempra and Exelon buy ratings and noted that they have "strong EV adoption."

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In 2022, utilities stocks outperformed, but Sempra hasn't changed much since then. Exelon's stock has decreased by around 3%.