Electric vehicle technology will continue to advance as adoption rises. Human ingenuity always meets demand. Accordingly, as EV demand continues to grow over time, investors will be focused on only on conventional EV stocks, but those of companies enabling the growth of this sector and providing the infrastructure necessary for such growth.
Indeed, advances in EV technology touch on many different niches. There are improved batteries that offer quicker charging, better safety, and greater range. Those are perhaps the most important area for future development. However, autonomous driving technology also features prominently in the minds of many investors.
That said, at the moment, there’s arguably no greater issue for proponents of EV stocks than charging technology. Whether it’s charging speed, cost, payment options, or availability, there’s plenty that can be done to improve on what exists. Thus, the three top EV stocks on this list are EV-charging focused.
| NAAS | Naas Technology | $5.67 |
| WBX | Wallbox | $2.86 |
| ALLG | Allego | $2.45 |
Naas Technology (NAAS)
Beijing-based Naas Technology (NASDAQ:NAAS) is growing like crazy. The company offers a one-stop shop within the EV charging industry. Various services provided by Naas include site selection, hardware and software procurement, construction, connectivity, maintenance, and storage services, among others.
Back to that rapid growth. NaaS Technology’s revenues increased 150% year-over-year to $5.3 million in the first quarter. Most of that growth was attributable to the firm’s charging operations, which grew by 112% during the same period. The company has brought 55,000 charging stations and 575,000 chargers online as of March 31.
There were 13.1 million EVs on China’s roads by the end of 2022. It is expected that 9 million additional EVs will be sold in China this year. Thus, the company’s growth potential is clearly very high. NaaS Technology has an opportunity to connect many of the chargers and charging stations that will be needed to support this growth this year. In fact, the company provided guidance that revenues should increase by a factor of 5-6 this year alone.
Wallbox (WBX)
Wallbox (NYSE:WBX) is an EV charging company advancing technology standards within its industry. Beyond its technological improvements, WBX stock is interesting because it offers more than 100% upside based on the current average analyst target price.
One of the overarching issues negatively affecting EV adoption is the lack of standardization and compatibility between chargers. Wallbox’s Supernova chargers solve many of these problems. Thus, it may not be surprising that these chargers are already sold in 33 countries, and are set to enter the U.S. market later this year. The decision was recently made to embrace (NACS), the North American Charging Standard. That means Wallbox will be able to service a greater customer base overall, giving it a greater chance to capture more revenue.
Interoperability and compatibility have long plagued the EV sector. Locating appropriate charging stations is not as easy as going to the gas station. Now, this issue is one that’s improving, as companies like Wallbox provide interchangeable options for consumers. Thus, while the company might not be particularly dynamic in its approach to solving a complex problem, the problem Wallbox does solve is very important in this space.
Allego (ALLG)
Allego (NYSE:ALLG) is another EV charging stock that is focused on improving charging availability across Europe. The company is growing rapidly, especially as it relates to charging revenues.
Overall revenues increased by 28% this past quarter on a year-over-year basis, reaching 38.8 million Euros. Charging revenues accounted for 27.8 million Euros of that total. What’s particularly impressive here is that charging revenues increased by 167% during the period.
Investors know that past results don’t guarantee future results. Price appreciation and returns are dependent upon future numbers. However, one reason to believe that Allego is primed for continued growth is its business backlog. A year ago, the company had a backlog of 500 sites that it planned to bring online in the future. That number has more than doubled over the past 12 months, and now stands at 1,117.
Given the growth of Allego’s backlog, and its impressive ultra-fast charging technology, this is an EV stock worth buying right now.
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On the date of publication, Alex Sirois 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.