Investing in electric car charging stations is on everyone’s mind right now. Since Tesla brought out its revamped Model S in 2012 (over a decade ago!), the race to go electric has been slowly hotting up. Nowadays, almost all vehicle manufacturers worldwide have dedicated teams and networks in play.
Legislation is coming quickly, too! The EU, in particular, has taken particular strides to electrify its new transportation industry by 2035. The US is expected to aim for a similar target.
So, how can you make money from this electric change? One of the answers: EV charging stations.
Read this article at Electrly to learn more.
Why Should You Invest in EV Charging Stations?
Electric cars are on the rise. Love or hate them, they have momentum, and they’re here to stay.
Although EVs are yet to account for anywhere near the majority of national or international automotive sales, the pace is steadily increasing. Currently, around 10% of global car sales are electric and about 6% of new US cars.
An interesting (and logical) trend is that the primary driving force for EV sales is the younger generations - the people most concerned about our climate. You can expect this general direction to continue through their lives and be passed on to their children, setting a likely course for the coming decades.
The infrastructure for charging EVs is still limited. You’ll see a few charge points here and there as you drive along - at restaurants, hotels, or the parking lots of large corporations, perhaps - but they’re far from common.
That presents a market gap that you can exploit. Getting ahead of the inevitable curve means reaping the benefits in the future.
You’ll have the opportunity to make money directly or indirectly with a charging station investment:
- Pay per charge - set the charge rates at a profit per kWh or per hour.
- Pay per charge but simply cover your costs and break even. Make money from indirect revenue such as advertisements or nearby facilities.
- Free charges - even if you lose money on the charging itself, you’ll encourage a much larger footfall, generating more income from indirect revenues.
How Do You Invest in Electric Car Charging Stations?
The best way to invest in electric car charging stations depends on your circumstances. The most significant ROI will likely come from indirect income if you own an existing business premises.
Placing EV chargers in your parking lot will encourage customers to stop, charge, and enter your store. You could charge per kWh or hour, just enough to cover your costs, while driving sales elsewhere. Clever.
DCFCs (Level 3 chargers) are much more expensive to install but offer a higher return since we need many more as EVs become more popular!
Level 2 J1772 EV chargers are the most sensible investment for most small or medium businesses. They aren’t slow, offering drivers just enough to satisfy them - but they’re much slower than DCFCs. Most Level 3 stations charge at 50 kW or higher (many 250 kW charge points exist now!). In contrast, Level 2 chargers are typically less than 10 kW.
But this slow rate might actually work to your advantage, especially if you have a nearby business. The longer a car takes to charge, the more time the driver will spend in your store.
At the same time, your brand will appear more ethical and environmentally conscious, which most Americans see as vital in how they perceive businesses.
Finally, your business could use these charging stations to switch to an electric fleet (if applicable). By running EVs rather than traditional vehicles, you’ll set yourself up for incentives and future-proof your organization’s transportation.
How to Invest in Electric Car Charging Stations Without Owning a Business
If you don’t own a business or any physical location to place an EV charging station, don’t worry. There are still ways you can invest in EV charging stations!
The most effective method is stock market investing. Purchase shares in companies developing these charge points and the EV manufacturers sure to boost their presence. These might include the following:
- ChargePoint (CHPT)
- Tesla (TSLA)
- Nio (NIO)
- Blink (BLNK)
- EVGo (EVGO)
- TPG Pace Beneficial Finance Group (TPGY)
- Volta (VLTA)
- Nuuve (NVVE)
- Rivian (RIVN)
Of course, market shares are always falling and rising. Consult a financial advisor before making any purchases. This article is intended as friendly suggestions, not advice!
Investing in electric car charging stations is likely a surefire way to future-proof your finances. Over time, the network will expand dramatically, as we can expect tens of millions more EVs on the roads in the next ten or twenty years.
This growth can be invested in early to maximize returns. Ensure you come at it with a sound strategy, consulting relevant advisors, accountants, planners, engineers, and so on. The future is coming. Let’s get ready for it!