The electric vehicle (EV) charging market happens to be one of the fastest-growing segments in the transportation sector. The increasing adoption of EVs, supportive government policies, and technological advances all drive the transformation of the space. As consumers continue to choose EVs over normal combustion engine cars, these vehicles will require a vast charging network to support them.
Therefore, let’s explore three EV charging stocks that investors can buy to capitalize on this booming market.
By far, Tesla (NASDAQ:TSLA) is the dominant player in the EV charging market. The automaker has been playing an influential role in creating the basic infrastructure for electric vehicle charging.
These days, Tesla owns and operates the largest global fast-charging network in the world. TSLA boasts over over 50,000 Superchargers across 14 countries. This helps EV drivers to rest easy as they make long road trips across the country.
Since January, Tesla’s shares have performed well, although certain rough spots were encountered. In October, shares plummeted over 17% due to missing Wall Street estimates in its Q3 earnings print. Also, CEO Elon Musk made weary statements about the state of the global economy and near-term EV demand.
Despite EV demand potentially slipping in the short term, Tesla’s prowess in the charging market remains outmatched thus far. So, for investors interested in companies significantly influencing the charging landscape, Tesla shares are an obvious investment.
Beam Global (BEEM)
Beam Global (NASDAQ:BEEM) is a provider of innovative solar-powered EV charging solutions that don’t require any grid connection or installation.
The company’s flagship product is the EV ARC™ (Electric Vehicle Autonomous Renewable Charger). A self-contained unit, it can generate and store enough solar energy to power up to five EVs per day. Also, BEEM offers the Solar Tree®, which is a solar-powered parking structure that can charge multiple EVs simultaneously.
The company’s third quarter earnings results have given investors hope. For Q3, Beam Global reported $16.5 million in revenue, a 149% increase year over year (YOY). BEEM attributes much of this year’s revenue growth to increased demand from federal, state, and local governments looking to invest in EV charging infrastructure.
Additionally, the EV charging company announced plans to further expand in Europe, which could help create future growth. While shares have taken a beating this year, most likely due to the worsening EV market outlook, BEEM’s products show much growth potential.
Allego N.V. (ALLG)
Founded in 2012, Allego (NYSE:ALLG) is a Netherlands-based EV charging company offering solutions for electric cars, motors, buses, and trucks. In essence, Allego provides charging solutions to give private businesses the opportunity to create EV charging infrastructure for consumers.
Thus far, Allego has amassed a vast charging network of more than 34,000 charging points across Europe. To help its customers service the Allego charging stations, Allego also offers an EV Cloud Platform.
Also, ALLG reported an impressive Q3 print in mid-November. In particular, revenue increased 28.2% to €28.6 million ($30.2 million), compared to €22.3 9 million ($21.8 million) YOY. Moreover, as of October, Allego recorded over 1 million sessions per month across its charging network.
As secular trends create tailwinds for EV charging stocks, Allego could be a good E.U.-centric bet for the future.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.