While this all might sound bad, the secular tailwinds for the EV market and the EV charging market remain intact. With a range of supportive government policies, consumer have already begun shifting their preferences from combustion engine cars to electric vehicles.
Investors looking to increase their exposure to the infrastructure side of the EV space, should look no further than these three EV charging stocks to buy on the dip.
BYD (BYDDY)
Despite current headwinds in the electric vehicle market, China’s crown jewel EV company, BYD (OTCMKTS:BYDDY), has continued to deliver strong grow figures. According to Bloomberg, BYD reported solid deliveries growth in the first quarter of 2024. Specifically, total vehicle sales increased 46% on a year-over-year basis to 301,631 vehicles. BYD’s EV sales rested at 300,114. All of that is to say, the Chinese EV giant has clearly not hit the peak of its growth cycle. Moreover, recent forays into EV charging infrastructure could tighten its hold on the global EV market.
As I have reported on a few occasions, instead of BYD using only its resources to build charging hubs, the EV maker has opted to form partnerships with larger energy companies in order to do. For example, BYD has constructed several charging hubs with Shell (NYSE:SHEL) across Europe and China. Earlier in 2024, BYD announced plans to build 600 charging stations around Brazil with Brazilian ethanol firm Raizen.
The way in which BYD has decided to go about these partnerships is forward-thinking. Electric vehicles have become a geopolitical football issue as of late, so the EV maker’s strategy of formulating partnerships with domestic firms in other countries in order to build EV infrastructure creates a win-win situation for every party involved.
BYDDY shares have fallen more than 7% on a year-to-date basis, and because of the numerous growth tailwinds guiding the EV maker, it’s one of the EV charging stocks to buy on the dip.
Siemens (SIEGY)
Founded way back in 1847, Siemens (OTCMKTS:SIEGY) is a German industrial giant that specializes in mobility and infrastructure services. In particular, the company’s five product segments include: Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services (SFS). The company’s Mobility segment is what we’ll be focused on for this gallery.
Siemens provides original equipment manufacturers (OEMs) not only with IoT-enabled charging hardware, but the company also provides them with programmable charge controllers, automation applications, and electrical components for implementing charging solutions. The German firm recently completed a pilot of its charging system for electric trucks. According to Siemens, the charger had completed its first 1 MW charge.
Siemens generated nearly $8 billion in net income last year, which means the company has ample room to invest in the infrastructure of tomorrow. As shares have only risen just above 2% in 2024, investors should consider this stock now.
ABB (ABBNY)
ABB (OTCMKTS:ABBNY) is another European firm, particular based in Switzerland, that targets industrial and utilities companies with electrification, motion, and automation products. The company conducts business in several facets of the electric vehicle charging space, from developing charging infrastructure to installing and maintaining it.
Moreover, the Swiss firm offers a pretty comprehensive suite of EV charging solutions, including wall-boxes for charging EVs at home, fast-charging stations for public charging infrastructure, and even charging systems for electric buses. The Terra 360 charging system, ABB claims, is the fast-charging system in the world and can charge up to 4 electric vehicles to full charge in under 15 minutes.
Outside of providing hardware solutions. ABB also designs and sells software solutions to help infrastructure asset managers optimize costs. For example, ABB’s Ability product is a software solution that enables enterprises in a variety of sectors, including e-mobility, to formulate data-driven insights on the infrastructure they’re managing.
Similar with Siemens, investing in ABB means you’re getting exposure to a diversified business, which ultimately decreases an investor’s risk exposure.
On the date of publication, Tyrik Torres 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.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.