Announced in July 2023 and officially commencing operations in February 2024, IONNA plans to deploy at least 30,000 high-powered chargers. The network will be accessible to all-electric vehicles that support NACS or CCS connectors. This is a joint initiative that was spurred by cooperation between automakers such as General Motors (NYSE:GM), Mercedes-Benz (OTC:MBGAF), Stellantis (NYSE:STLA), and others.
In light of this rollout, certain EV charging stocks are worth inspection to take advantage of this development. These companies represent the best value for money, in terms of both their valuation and upside potential.
Let’s explore companies you should consider adding to your portfolio.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) is one of those companies to buy if investors want to bet on the IONNA EV charging network.Â
TSLA has traditionally used its proprietary connector for charging in North America, known as the Tesla connector. However, Tesla has been moving towards broader compatibility. The company announced the North American Charging Standard, making their vehicles and charging network more accessible to a wider range of EVs.
As one of the biggest EV brands in North America, TSLA is one of those stocks to buy for investors to tap into the IONNA catalyst. Furthermore, analysts believe that TSLA’s revenue will rise by 20.49% next year to 137.27 billion. Also, its EPS is expected to increase by 31.39%.
Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) is a leader in EV charging equipment and networked charging services. They support CCS connectors for DC fast charging and are moving to include the North American Charging Standard connectors developed by Tesla. This will broaden the accessibility for EVs that use these connectors.
Additionally, BLNK made some solid progress last year to put them in good step for 2024. The company initiated several strategic partnerships, notably with an agreement with Mitsubishi to deploy EV charging solutions across Mitsubishi’s U.S. dealerships. Also, a significant contract with the United States Postal Service (USPS) will provide up to 41,500 EV charging stations.
Further, the company targets achieving a positive Adjusted EBITDA run rate by December 2024 and maintains an annual gross margin target of over 30%. The third quarter of 2023 saw a remarkable 152% increase in total revenues to $43.4 million. This was driven by significant increases in product sales and service revenues.
Rivian (RIVN)
Rivian (NASDAQ:RIVN) has announced plans to add NACS ports to its vehicles. This move will allow Rivian vehicle owners to access Tesla’s Supercharger network, significantly expanding charging options. Also, Rivian is developing its own charging network, which aims to include 3,000 North American charging stations upon completion
Hence, this would give U.S. EV owners an additional reason to choose RIVN over some of its competitors, which could make IONNA a tailwind for the company.
Furthermore, the brand demonstrated solid performance in 2023, exceeding its production guidance with 57,232 vehicles produced against a target of 54,000. The company delivered 50,122 vehicles in the same period, reflecting robust demand for its R1T pickup and R1S SUV models.
However, despite generating $1.34 billion in revenue in Q3 2023, the cost to generate that revenue was $1.81 billion, indicating that Rivian is losing money on each vehicle produced. This situation, however, marks a significant improvement over the past year. I think that RIVN is on the right track to becoming a formidable player in the industry.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
