4 EV Stocks to Benefit From $7.5 Billion Investment in Charging Infrastructure - Needham

November 8, 2021 9:51 AM EST
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Needham & Company analyst Vikram Bagri has outlined 4 companies that are likely to benefit from $7.5 billion set aside for electric vehicle (EV) charging infrastructure under the $1.2 trillion Infrastructure Bill.

The federal government will provide $2.5 billion through competitive grants through the Highway Trust Fund (HTF). These funds are available for deploying publicly accessible EV charging and alternative fueling infrastructure, while the remaining $5 billion is set aside for states to deploy charging infrastructure.

Although the analyst sees this infrastructure investment as a positive for the entire EV sector, he believes the deployment is likely to be slow.

“The rollout could mirror that of the Recovery Act in 2009 where state energy offices applied for funds from the DOE to increase energy efficiency and renewable energy. Hence, it could be a slow moving process and vary by state,” Bagri said in a client note.

As far as the specific companies are concerned, the analyst outlined Blink Charging (NASDAQ: BLNK), Beam Global (NASDAQ: BEEM), Volta (NYSE: VLTA), and ChargePoint (NYSE: CHPT) as beneficiaries as the bill passing is an additional catalyst that the EV industry needs.

“BLNK has already won several competitive procurements with governments thus it will be well-prepared when state programs begin to ramp. The company has a strong presence in its home state of FL and on both East and West coasts. BEEM depends heavily on government procurement. BEEM has a General Services Administration Multiple Award Schedule Contract, which allows Federal agencies to buy the products in an extremely streamlined process with pre-negotiated pricing and terms. VLTA's strong BS and a large portfolio of locations with signed MSAs should allow it to move quickly to take advantage of these programs. Finally, CHPT has wider reach across the US and should get its share of business from government spending and fleet conversions,” Bagri concluded.

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