Electric vehicles have been gaining popularity in America. And based on results from a new poll, we are about to see a whole lot more of them on the road.
The poll, conducted by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago, finds that 41% of U.S. adults say they are “somewhat likely,” “very likely” or “extremely likely” to get an EV the next time they buy a car.
Meanwhile, 47% of respondents indicate they are either “not too likely” or “not at all likely” to go electric for their next vehicle purchase. The remaining 12% of respondents say they have no plans to buy a car.
To be sure, electric car adoption is still at an early stage. Only 9% of respondents report that someone in their household already owns or leases an EV.
What’s Holding Them Back?
The poll also sheds some light on the obstacles that stand in the way of more widespread EV adoption.
Notably, six in 10 respondents consider the high cost of new EVs a major reason for not buying one. Moreover, half of the respondents believe that the lack of charging stations to be another main hurdle for going electric.
“While there is plenty of interest in purchasing an electric vehicle, the high upfront cost of owning one and concerns about the country’s charging infrastructure are barriers to more people driving them,” said Jennifer Benz, deputy director of the AP-NORC Center in a statement.
That said, companies are working hard to overcome these obstacles. And if EV penetration continues as the poll results suggest, companies in this industry could see better days ahead.
If you want to tap into this segment, here’s a look at two EV stocks that are particularly well-positioned for this trend. Wall Street also sees upside in this duo.
ChargePoint Holdings CHPT
ChargePoint Holdings doesn’t build electric cars. Instead, as its name suggests, the company focuses on the charging side of the business.
ChargePoint’s network has over 225,000 activated ports across North America and Europe. The company serves residential, commercial and fleet customers. Notably, 80% of Fortune 50 companies use ChargePoint.
Business is growing, too. In ChargePoint’s fiscal 2023, which ended Jan. 31, revenue grew 94% year over year to $468.1 million. This was driven by a 109% increase in networked charging systems revenue and a 59% increase in subscription revenue.
The stock, however, hasn’t been a hot commodity. Over the past 12 months, ChargePoint shares have fallen by more than 40%.
JPMorgan analyst Bill Peterson sees a rebound on the horizon. The analyst has an Overweight rating on ChargePoint and a price target of $15.
Considering that shares currently trade at around $8.90, the price target implies a potential upside of 69%.
Tesla TSLA
Despite being a mega-cap company, Tesla has been a volatile name. Shares have climbed 68% year to date but are still down 44% over the past 12 months.
Business, however, remains on the right track. In 2022, Tesla’s EV production and deliveries increased 47% and 40% from 2021, respectively.
And while Tesla’s models aren’t known for being cheap, rumors suggest that the company may unveil a more budget-friendly EV soon.
Tesla CEO Elon Musk said back in 2020 that the company will make a “compelling $25,000 electric vehicle that is also fully autonomous.”
At the same time, Tesla is also helping solve the charging infrastructure problem.
The company has deployed more than 40,000 Superchargers around the globe. According to Tesla, these Superchargers can add up to 200 miles of range in just 15 minutes, making stops short and convenient for EV drivers.
Morgan Stanley analyst Adam Jonas has an Overweight rating on Tesla and a price target of $220, implying a potential upside of 21%.
The stock market offers plenty of opportunities for those wanting to gain exposure to the EV industry. But these days, retail investors can also get a piece of the action from sustainable energy start-ups, including one that could revolutionize the way we store energy to power our planet.
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