Q1’s Rising Stars: 3 EV Charging Stocks for Your Must-Watch List

Stocks to buy

In 2023, EV charging stocks had difficulty, led by ChargePoint (NYSE:CHPT) which lost more than 75% of its value. ChargePoint saw its revenues fall by 12% during the most recent quarter with losses nearly doubling. Combine that with greater troubles across the EV sector, and it’s easy to understand the reason it fell dramatically.

Regardless, the EV charging sector is bigger than ChargePoint alone. The necessity of building out EV infrastructure remains. Currently, the sector is experiencing a common phase that naturally occurs prior to mass adoption. That strongly suggests that the EV charging stocks discussed below deserve a spot on your must-watch list in 2024.

EVgo (EVGO)

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EVgo (NASDAQ:EVGO) has emerged as the strongest challenger to ChargePoint and its stock. 

Investors should always consider fundamentals first when adding a company to a must-watch list. From that perspective, EVgo ticks a lot of the right boxes.

Even though ChargePoint’s revenues fell during the most recent quarter leading to greater losses, EVgo did precisely the opposite. Revenues increased by $234%, reaching $35.1 million. That resulted in a significant narrowing of losses from more than $50 million to just above $28 million.

Further, the company added 106,000 customer accounts during the period pushing its total to 785,000. Speaking anecdotally, EVgo’s charging stations seem to be popping up in more and more places. It’s obviously a positive sign for its growth but also for the continued development of EV infrastructure overall. 

Finally, the strong quarterly results provided management with the confidence to increase its guidance for the full year. And that arguably provides more evidence in favor of investing in EVgo at the moment.

ON Semiconductor (ON)

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ON Semiconductor (NASDAQ:ON) Is broadly known as one of the best chip stocks as it relates to the EV sector. Generally, the company is associated with electrification in relation to vehicle power trains and auxiliary systems. So, ON Semiconductor is primarily associated with the propagation of EVs. The more electric vehicles sold, the better and brighter its future.

However, ON is providing chips for EV charging infrastructure. It has a potent catalyst in the infrastructure build out. Also, the company sells a variety of devices and chips used in that charging infrastructure. 

Recently, the company released modules for use in charging systems that are expected to reduce costs overall. Costs are a major concern in any business. Especially in the EV industry, expensive charging infrastructure is being essentially built from nothing.

Importantly, Wall Street believes that ON Semiconductor’s stock has a lot of potential over the next 12 to 18 months. 

Tesla (TSLA)

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Tesla (NASDAQ:TSLA) continues to be a pioneering and dominant force in the EV industry. That dominance extends well beyond the vehicles it produces. Tesla’s extensive charging network is yet another reason to consider the stock.

The company owns and operates more than 50,000 superchargers globally. That charging infrastructure allows users to add 200 miles of range to their vehicle in approximately 15 minutes. Positively, Tesla’s superchargers are substantially faster than chargers from other networks.

The average amount of time spent at a charging station was 42 minutes in 2023 for us customers. When Tesla’s superchargers are factored into that number, the average drops to 31 minutes. 

Also, Tesla added functionality that allows vehicles from other makers to now utilize its network. Even so, older legacy systems may still be incompatible with certain vehicles which will come as a negative surprise to some users. In any case, Tesla is still the king of EVs, charging included. 

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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