With the growing need to address climate change, reduce carbon emissions, and transition to sustainable energy solutions, the electric vehicle (EV) market is one of the fastest-growing industries - and the most crowded. Aside from the fierce competition, macroeconomic headwinds have hampered EV companies' financials. Even automotive giant Tesla (TSLA) has struggled with rising interest rates and low consumer spending on EVs over the last two years.
Most EV stocks fell after California-based automaker Fisker filed for bankruptcy last month. While Fisker's financial situation is unrelated to that of other EV companies, investors are increasingly wary of investing in EV companies.
However, estimates show that the global EV charging station market will grow at a compounded annual growth rate of 35.6%, reaching $257.03 billion in 2032. This could be one of the reasons why Wall Street believes these three EV stocks have the potential to rise by about 56% to 112% as macroeconomic headwinds subside. Let's find out more.
#1. ChargePoint Holdings
With an increase in the number of EVs on the road, ChargePoint Holdings (CHPT) has built a comprehensive network of charging stations throughout North America and Europe. The company's business model consists of selling charging hardware, subscription services for network management, and energy services.
Valued at $702.7 million, ChargePoint stock has dropped 21.8% YTD, while the S&P 500 Index ($SPX) has gained 16.7%.
The company has reported impressive revenue growth over the last four years because of the increasing adoption of EVs and the expansion of its charging network. However, macroeconomic headwinds weighed on its recent first quarter fiscal 2025 results. Total revenue fell to $107 million, down 18% year on year, with adjusted gross margin at 22% versus 25% in the prior-year quarter.
With a focus on growth and market expansion, consistent profitability remains a concern for ChargePoint. But adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) losses in the quarter turned out to be $36.5 million, better than $48.9 million in the prior year's quarter.
The company has partnered with Porsche Cars North America to increase the number of chargers available to all Porsche customers in North America to over 100,000. Furthermore, it has collaborated with LG Electronics to use its advanced EV charging hardware to revolutionize EV charging.
ChargePoint expects to achieve positive adjusted EBITDA by the fourth quarter of fiscal 2025 (ending Jan. 31, 2025). Analysts forecast ChargePoint Holdings' revenue to increase by 3.5% to $524.6 million in fiscal 2025, and by 28.9% in fiscal 2026.
What Is Wall Street’s View On CHPT Stock?
Overall, Wall Street rates CHPT stock as a "moderate buy.” Out of the 18 analysts covering CHPT stock, five recommend it as a "strong buy," one as a "moderate buy," 11 rate it a "hold,” and one suggests a “strong sell.”
Analysts' average price target of $2.86 suggests the stock can rise by 56% from its current levels. However, the high target price of $6.00 implies a potential 227.8% gain over the next year.
#2. Blink Charging
Blink Charging (BLNK) focuses on providing EV charging solutions across various locations, including residential, commercial, and public sectors. The company's extensive network, which includes Level 2 AC charging stations and DC fast chargers, extends throughout the United States and several international markets.
Valued at $281.9 million, Blink Charging stock has dipped around 15.6% YTD, compared to the broader market.
Blink Charging's revenue has grown significantly, owing to increased EV adoption and network expansion. In the first quarter, revenue increased by an astonishing 73% year over year to $37.6 million. The company reported a gross margin of 36%, up from 21% the year before. In addition, it “contracted, deployed, or sold” 4,555 charging stations in Q1.
While the company remains unprofitable, adjusted net losses narrowed to $0.13 per share, compared to $0.49 per share in the year-ago quarter.
Recently, the company announced that it has signed a deal to become one of New York’s official EV charging providers. The Federal Risk and Authorization Management Program may also grant the company full accreditation for its EV charging solutions in the near future.
Management anticipates revenue growth of 17% to 24%, landing between $165 million and $175 million, with a gross margin of around 33% in 2024. Furthermore, the company expects to achieve positive adjusted EBITDA by the end of 2024. Its other 2023 deals with Mitsubishi Motors North America, Hertz (HTZ), and the USPS may continue to help boost revenue and turn a profit.
Analysts predict that Blink's revenue will increase by 20.4% in 2024 and 29.2% in 2025 as macroeconomic headwinds ease.
What Is Wall Street’s View On BLNK Stock?
Overall, Wall Street rates BLNK stock as a "moderate buy.” Out of the nine analysts covering BLNK stock, three recommend a "strong buy," one rates it a "moderate buy," and five suggest a "hold."
Analysts' average price target of $6.05 suggests the stock can rise by 111.5% from its current levels. Furthermore, BLNK has a high target price of $15, implying a potential 424.4% gain over the next year.
#3. Nio
Nio (NIO) is a well-known Chinese EV manufacturer, often compared to Tesla. Nio's product line includes high-performance electric SUVs and sedans. Nio distinguishes itself with its commitment to battery swapping technology, which allows users to quickly replace their vehicle's battery, reducing the lengthy wait times associated with traditional EV charging.
Despite strong second-quarter delivery results, Nio stock has fallen 49% year-to-date, compared to the broader market.
Recently, Nio announced it delivered 21,209 vehicles in June 2024, an increase of 98.1% year-over-year. The company delivered 57,373 vehicles in the second quarter, representing a 143.9% increase over the same period last year. This represents a significant increase over the 30,053 deliveries in the first quarter, as well.
Management stated during the Q1 results that the company has “forged strategic partnerships with seven automakers in China to promote the standardization and adoption of battery swapping technologies, underscoring the long-term strategic value of our extensive power network.”
The company's first-quarter results disappointed investors, with total revenue falling 7.2% to $1.3 billion. The company's adjusted losses also increased to $679.1 million during the quarter. Management expects revenue growth of 89.1% to 95.3% in the second quarter. Analysts predict that Nio's revenue will rise 21.4% in 2024 and 43.1% in 2025.
What Is Wall Street’s View On Nio Stock?
Overall, Wall Street rates NIO stock as a "hold.” Out of the 14 analysts covering NIO, two recommend it as a "strong buy," two as a "moderate buy," nine as a "hold,” and one as a “strong sell.”
Analysts' average price target of $7.34 suggests the stock can rise by 58.8% from its current levels. However, the high target price of $16 implies a potential 246.3% gain over the next year.
