With the popularity of electric vehicles, building a comprehensive EV charging station network has become a top priority worldwide. Major EV makers like Tesla and rising startups have invested heavily in this area. Recently, the U.S. government led by President Biden has also rolled out a $7.5 billion plan to build 500,000 EV charging stations nationwide, aiming to make EV charging as easy as gas refueling. Tesla is far ahead of others regarding charging networks thanks to its early focus on building proprietary stations. As the market grows, EV charging station companies will likely attract massive investments given the huge potential.
Biden’s plan indicates surging U.S. government support for ev charging buildout
The Biden administration’s $7.5 billion investment plan marks unprecedented U.S. government support for EV charging infrastructure. This will incentivize charging station companies to accelerate network buildout through public-private partnerships. With strong policy tailwinds, increasing government funds, and booming EV sales, prominent EV charger makers like Blink Charging and ChargePoint can be expected to expand aggressively.
Tesla’s early focus on proprietary charging network gives it a strong lead
While most automakers concentrate on making EVs, Tesla distinguishes itself by prioritizing charging network buildout. This proprietary network covering major highways gives Tesla owners reliability and range confidence, making Tesla the EV brand of choice. Legacy automakers should follow Tesla’s example and strengthen charging support first before rolling out more EV models.
Surging EV demand will necessitate massive expansion of charging stations
As EV sales skyrocket globally, charging networks must expand accordingly to meet demand. IHS Markit forecasts there will be over 30 million EVs on U.S. roads by 2030, underscoring the need for large-scale charging station buildout. This creates a huge opportunity for capable charging station operators to establish broad networks. Companies that gain first-mover advantage will be best positioned to capitalize.
In summary, the confluence of surging policy support, EV sales growth, and changing consumer preferences are making EV charging station companies promising investments. Firms like Blink Charging and ChargePoint that can scale networks quickly will benefit most from this enormous opportunity.