We recently published a list of 11 Best EV Charging Stocks To Invest In. In this article, we are going to take a look at where ADS-TEC Energy (NASDAQ:ADSE) stands against other best EV charging stocks.
Over the last few years, the electric vehicle (EV) market has experienced significant growth, due to consumer demand, automaker investments, and substantial government support. In the US, the $7.5 billion from the 2021 Infrastructure Investment and Jobs Act and tax credits from the Inflation Reduction Act have also fueled EV growth.
According to the International Energy Agency (IEA), global public charging points are expected to exceed 15 million by 2030 and will increase to nearly 25 million by 2035. In the U.S., the government aims to install 500,000 public charging ports by 2030, with the total number of chargers expected to reach 900,000 in 2030 and 1.7 million by 2035.
Globally, home charging is expected to grow to over 270 million units by 2035, with more than 45% of electricity coming from public or private non-home chargers. Charging infrastructure for heavy-duty vehicles (HDVs) is also expected to grow significantly. By 2035, installed HDV charging capacity is projected to reach 2,000 GW. Policies like the EU’s Alternative Fuels Infrastructure Regulation and U.S. strategies are driving this expansion, alongside private investments.
The Road Ahead for EV Charging: Industry Growth and Challenges
According to PwC’s analysis, the number of charge points in the U.S. must grow from around 4 million today to 35 million by 2030 to meet demand. The PwC report has projected that the number of EVs could reach 27 million by 2030 and 92 million by 2040.
The EV supply equipment (EVSE) market is expected to expand from $7 billion to $100 billion by 2040, at a 15% compound annual growth rate. The market’s primary value pools are hardware, software, installation services, and charge point operators (CPOs). CPOs, which build, operate, and maintain charging stations, are expected to dominate and capture 65% of market revenue by 2040. On the other hand, hardware providers’ share will shrink from 46% today to 20% by 2040.
Despite the clear market opportunities, challenges remain, including educating consumers, financing infrastructure, and ensuring cost-effective solutions across different charging segments. Companies looking to enter or expand in the EVSE market will need to understand evolving customer needs, adopt appropriate business models, and prepare for long-term investments with a focus on strategic partnerships and potential acquisitions.
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A street corner lined with EV charging stations with EVs charging in the gaps.
ADS-TEC Energy PLC (NASDAQ:ADSE)
Number of Hedge Fund Holders: 5
ADS-TEC Energy PLC (NASDAQ:ADSE) is a spin-off from the ADS-TEC Group. It focuses on developing decentralized energy platforms with integrated battery storage systems. The company’s goal is to manage the power fluctuations associated with renewable energy sources like wind and solar, as well as increasing demand from heat pumps and electric vehicles.
The company produces intelligent energy solutions designed for various uses, including fast EV charging and peak load management. It offers ultra-fast charging solutions without the need for costly grid upgrades. Its systems store energy and deliver it quickly, allowing EVs to charge efficiently even on power-limited grids.
The ChargePost system, for example, can deliver up to 300 kW of charging power and is equipped with features like bidirectional battery storage, which supports peak load management and energy trading. The ChargeBox system provides flexibility in installation, allowing for high-speed charging even when the grid connection is located up to 300 meters away.
Both solutions optimize the use of renewable energy, reduce operational costs, and offer a faster return on investment. The innovative charging platforms are designed to meet the growing needs of the EV market while promoting sustainability and energy efficiency.
In May, ADS-TEC Energy (NASDAQ:ADSE) signed a global service agreement with Porsche to become the preferred service provider for Porsche’s ultra-fast charging platforms across Europe and North America. The partnership includes remote diagnostics, on-site support, and continuous improvements based on data from ADS-TEC’s ChargeBox system.
Around 500 Porsche centers already use ADS-TEC’s ChargeBox to charge electric vehicles, and this collaboration will further enhance the availability and performance of fast-charging options at Porsche dealerships.
In the second quarter, 5 hedge funds had stakes worth $2.5 million in ADS-TEC Energy (NASDAQ:ADSE). It is among our best EV charging stocks to invest in.
Overall ADSE ranks 9th on our list of the best EV charging stocks. While we acknowledge the potential of ADSE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ADSE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure. None. This article is originally published at Insider Monkey.