How can we invest in electric vehicles? The easiest way to invest in electric cars is to purchase shares of the car-makers. There are probably no market participants who don't know the names of the major companies that make this type of vehicle.

This topic has been the subject of thousands of articles. Most of them mention companies like Tesla (NASDAQ; TSLA), NIO, Xpeng(NYSE: XPEV), Li Auto [NASDAQ: LI], and most recently General Motors and Ford (NYSE. F). Investors in electric cars will already have shares.

Today I will focus on investments in electric vehicles. This will not be a discussion about car-making firms, but rather those who provide the infrastructure necessary for electric cars maintenance.

It's a lucrative business to charge electric cars

All of us know that fuel must be purchased at gas stations. The network of gas stations has grown over the past century, so it is not difficult to find a station that can fill your car up.

Electric car drivers cannot yet enjoy this luxury. They must plan their route ahead of time so that there is a charging station. Charging stations are in high demand right now.

It takes less time and money to build a charging station than a gas station. A remote operator can manage many charging stations, making them easier to maintain and shorter in payback.

We get a promising and profitable business with lower costs. The key is to capture as much of the market as possible from the beginning. This article will highlight two charging station chains that are being developed by companies.

Blink Charging Co.

Blink Charging Co. (NASDAQ BLNK), was established in 2009. It is responsible for all aspects of infrastructure for electric vehicles. It owns, manages and leases equipment for charging through its subsidiaries. Blink Network software is offered by the company to help manage and maintain charging stations.

Blink Charging is available to assist airports, shopping centers, and other businesses that may need charging services. Blink Charging currently has 30,000 charging stations across 13 countries. Notably, Blink Charging had 16,617 charging stations as of December 31, 2020. Their number increased to 21,000 by 10 months later.

Contracts of Blink Charging

Recent news reports indicate that the company is expanding its presence in Los Angeles. It plans to open 300 additional stations. The Ministry of Transport of the City will partially finance the project.

San Francisco signed a contract with the company to open 202 charging stations.

The company also celebrated an agreement with Sourcewell, a self-supporting state institution that will purchase equipment for charging stations. This agreement provides 400 contacts with non-commercial and state organizations that will result in new Blink Charging clients.

Profit from Blink Charging rises by 170%

Although Blink Charging was established in 2009, it is still growing because of the recent increase in electric car sales around the world.

Tesla was the dominant player on the market in the past, but it didn't manage to meet all the demand for electric vehicles. Now electric cars can be made by large companies that can produce hundreds of thousands of vehicles. The company's revenue is still relatively low at 4.3 million US dollars. Blink Charging uses the profits from the sale of goods and services to develop their chain. This results in the company losing, but the dynamic of growth is impressive. It has increased 170% in a year.

Tech analysis of Blink Charging shares

Unfortunately, or fortunately for all those who invested in this company at the close of 2020, the share price increased from 8 USD to 65 USD during the overall stock market price growth. 65 USD per share for a company earning 1 million USD is too high.

The quotations began to fall gradually. After the decline reached 25 USD, investors attempted to increase the share price. Two months later, however, the quotations reversed and another attempt was made to improve the situation. The results were the same: the quotations went back to 25 USD.

Let's draw a conclusion. Investors are willing to purchase shares of Blink Charging at a price below 25 USD. The chart shows a Triangle pattern. This seems to be very alarming. The company's fundamentals are promising. However, tech analysis is important.

Wait for the breakaway of Triangle's upper line, which will signal more growth in the share price. A breakaway of 15 USD could lead to a fall to 15 USD.

ChargePoint Holdings, Inc.

ChargePoint Holdings, Inc., (NYSE: CHPT), is two years older that Blink Charging. It was established in 2007 and works with electric vehicle infrastructure. It manufactures and sells charging station equipment, and provides software and charging services.

ChargePoint has more than 100,000 charging stations and is present in 14 countries. The company offers a range of products, including home charging stations, three phase chargers for European countries, indoor DC chargers and a 400 kilowatt module charging system. The company offers equipment that can charge any electric vehicle.

ChargePoint purchased 10,000 charging points from General Electric (NYSE GE) in 2017. Two years later, ChargePoint signed an agreement to provide general access for charging electric cars.

ChargePoint's financial performance exceeds the expectations of experts

ChargePoint's revenue is 13 times higher than Blink Charging's, which amounts to 56 million US dollars. Most importantly, ChargePoint made a profit last quarter. The company's profit from network chargers increased 91% while the sales of software and equipment grew 61%. These results are better than experts expected.

ChargePoint shares behaved the same as Blink Charging shares. At the end 2020, they increased by 400% and then began to fall. In June 2021, there was a support level of 20 USD.

However, shares currently trade below this level. Under such conditions, growth would only be possible if the shares surpass 20 USD.

Closing thoughts

Reports show that electric car manufacturers increase their sales by dozens of percentages each month. This means that there will be more electric cars on the streets.

All these cars require charging, which leads to an increase in demand for charging equipment as well as services at charging facilities.

This sector is expected to grow in revenue. This is why it is important to increase the number of stations while sustaining competition on the market.

There are always people who want to make money from it, even if revenue is growing. Investors will become more interested in these shares, which will have a positive impact on the stock prices of the companies.

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