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4 Electric Vehicle Charging Stocks To Avoid for Now

InvestorPlace Logo By Faisal Humayun of InvestorPlace | Slide 1 of 5: Electric vehicle (EV) charging stocks have witnessed some euphoric movements in the recent past. There are strong reasons to believe that the EV charging industry will witness healthy growth in the coming years. However, most of electric vehicle charging stocks seem to have run ahead of their fundamentals. It therefore makes sense to wait for a correction before considering fresh exposure to electric vehicle charging stocks. Let’s first talk about the industry tailwinds. In March 2021, Cathie Wood’s Ark Invest Management opined that Tesla’s (NASDAQ:TSLA) stock price could hit $3,000 by fiscal year 2025. This would imply a market capitalization of $3 trillion for the electric vehicle company. To some, this price target might sound unrealistic. However, I would not rule-out the possibility of the target being achieved. Going by the trend and various estimates, it’s not just the next ten years that belongs to electric vehicles. The next two decades will witness sustained growth for the EV industry. According to Deloitte, the EV industry is expected to grow at a CAGR of 29% over the next ten years. If this growth estimate holds true, there needs to be a big investment allocated towards charging infrastructure. It goes without saying that electric vehicle charging companies are positioned for strong growth. Estimates suggest that the EV charging station market was worth $9.24 billion in FY2019. The market size is expected to increase to $70 billion by FY2026. This would imply an attractive CAGR of 33%.            10 Dividend Aristocrat Stocks for Your Reliability Short List          Let’s therefore talk about some quality electric vehicle charging stocks, which are presently overvalued, but worth keeping on your investment radar.  Blink Charging (NASDAQ:BLNK)  Climate Change Crisis Real Impact I (NYSE:CLII)  ChargePoint Holdings (NYSE:CHPT)  Tortoise Acquisition Corp. II (NYSE:SNPR)

Electric vehicle (EV) charging stocks have witnessed some euphoric movements in the recent past. There are strong reasons to believe that the EV charging industry will witness healthy growth in the coming years. However, most of electric vehicle charging stocks seem to have run ahead of their fundamentals. It therefore makes sense to wait for a correction before considering fresh exposure to electric vehicle charging stocks. Let’s first talk about the industry tailwinds. In March 2021, Cathie Wood’s Ark Invest Management opined that Tesla’s (NASDAQ:TSLA) stock price could hit $3,000 by fiscal year 2025. This would imply a market capitalization of $3 trillion for the electric vehicle company. To some, this price target might sound unrealistic. However, I would not rule-out the possibility of the target being achieved. Going by the trend and various estimates, it’s not just the next ten years that belongs to electric vehicles. The next two decades will witness sustained growth for the EV industry. According to Deloitte, the EV industry is expected to grow at a CAGR of 29% over the next ten years. If this growth estimate holds true, there needs to be a big investment allocated towards charging infrastructure. It goes without saying that electric vehicle charging companies are positioned for strong growth. Estimates suggest that the EV charging station market was worth $9.24 billion in FY2019. The market size is expected to increase to $70 billion by FY2026. This would imply an attractive CAGR of 33%. Let’s therefore talk about some quality electric vehicle charging stocks, which are presently overvalued, but worth keeping on your investment radar. Blink Charging (NASDAQ:BLNK) Climate Change Crisis Real Impact I (NYSE:CLII) ChargePoint Holdings (NYSE:CHPT) Tortoise Acquisition Corp. II (NYSE:SNPR)
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