Over the years, startups, automakers, and others have gradually built chargers, mostly in California and other coastal states, where most electric cars are sold. These businesses use different strategies to make money, and auto experts say it’s unclear which strategy will work. The company with the most stations, ChargePoint, sells chargers to individuals, workplaces, stores, condos and apartment buildings, and businesses with fleets of electric vehicles. It charges a subscription fee for the charger management software. Tesla mainly offers charging to get people to buy its cars. And others make money selling electricity to drivers.
The transition to electric cars
Once a lousy cousin to the trendy business of making sleek electric cars, the charging industry has been swept away by its own gold rush. According to PitchBook, venture capital firms poured nearly $1 billion into fee companies last year, more than the previous five years combined. So far in 2021, venture investments amount to more than $550 million.
According to Dealogic, a research firm, on Wall Street, publicly traded special-purpose acquisitions, or SPACs, made purchases of eight charging companies out of 26. transactions related to electric vehicles and related businesses. Transactions often include hundreds of millions of dollars from major investors like BlackRock.
“It’s early and everyone is trying to figure out what the potential looks like,” said Gabe Daoud Jr., managing director and analyst at Cowen, an investment bank.
These businesses could benefit from the infrastructure bill, but it’s unclear how the Biden administration will distribute the money to toll booths.
Another unanswered question is who will be the Exxon Mobil of the electric car age. It could also be the automakers.
Tesla, which makes about two-thirds of the electric cars sold in the United States, has already built thousands of chargers, which are available to early customers free of charge. Its CEO, Elon Musk, could open its network to vehicles made by other automakers later this year. said in july.