Google tells me that there are 1.5 billion cars on the road today—over the next 15 years, the majority of them are going to become electric.  EV charging infrastructure needs to be in place TO SUPPORT that happening.

You go to a public park and see a couple charging stations. Folks, that’s not going to cut it—not with a tidal wave of demand coming from hundreds of millions of EVs.   Think about apartment buildings: the couple charging units you see now in the underground parking garage of a 300 unit building is NOTHING. Each of these apartment buildings will need HUNDREDS of units—within a few short years.

Electrification is a fast growing global sector with a HUGE tailwind behind it. Below, I give you LOTS of stats that show how big, and how fast this is happening now. There’s both carrot—fast growing global demand for EVs—and stick—governments banning ICE (Internal Combustion Engine) cars with a decade.

This could be a trillion dollar switch out. 

Tomorrow I’m giving you the name and symbol of a company that is essential for this to happen—a company that has created a win-win-win solution for everybody involved in Electric Vehicles. With a seasoned CEO who has successfully disrupted one other mega-industry—construction equipment—they are growing incredibly fast. 

They’re not the first, but they have sure put a lot of the learnings from those poor pioneers into their solution. They can go into any charging system.  They do hardware and software.  Lease or own. Upfront sales and recurring revenue.  They have it all, AND… they make everyone win.

It has a low share price—under $1.  The recurring revenue stream from customers has already started.  This is toll-bridge style revenue; basic infrastructure revenue that gets HIGH multiples.  Example: recent take-overs of EV charging companies are valued at over US$15,000 per installed charger (some as high as US$20,000!).

The company CEO recently told me he has already almost DOUBLED his sales projections he set for himself in January 2022—their first year.

Like all companies in this industry, this one is standing in front of an absolute deluge of demand.

The Opportunity Is Obvious

 Several global auto companies have already said they’re phasing out building cars that use fossil fuels.  Cities and states have set deadlines where ICE (Internal Combustion Engines) cars can’t be used.

Governments across the globe are mandating this transition:

EU just banned the sale of combustion engine cars by 2035
California has done the same, New York is about to follow suit
Canada has also picked 2035, China and Japan too

2035 is the date.  That isn’t very far away.  To make this transition, the buildout of EV charging infrastructure has to speed up VERY QUICKLY.

All these countries and states need to have enough EV charging infrastructure in place to meet their climate goals.  All those EVs aren’t going anywhere if they aren’t charged.

Just think of what this entails.  This is an overwhelmingly LARGE task.  We don’t just need EV charging stations on every second street corner and along the highway. 

We are also going to need EV charging for every single electric vehicle that parks at every single apartment building—millions upon millions.  Also, we need EV charging infrastructure for

every EV in a commercial fleet,
for every EV delivery van,
for every EV long-haul vehicle,
for every EV uber driver,
for every EV taxi.

You get the idea. EVERYBODY.  With little warning, the demand for EV charging infrastructure is expected to go from a trickle to a full-blown tsunami.

EV charging demand over the next decade is expected to grow at more than 40 PERCENT annually.

Personally, I think those estimates are going to be low.  We need this infrastructure in place long before the number of EV’s on the road ramp up.

No surprise here: given the desperately short-term frame to get this infrastructure in place…. governments are throwing a lot of money to get it going.

The U.S. Infrastructure bill is providing $7.5B to strategically deploy EV charging and alternative fuel infrastructure. Analysts estimate that $1B of that is allocated to alternative fuels, leaving more than $6.5B just for EV charger deployment (see note 1 at end).

On a per capita basis Canada’s Zero Emission Vehicle Infrastructure Program is even more aggressive.  It is officially go time!

SMART and FLEXIBLE WINS

 Management is always key.  The CEO of this fast growing company is David Bibby, who has a lot of experience disrupting markets—he was charged with creating an online business for Finning (FTT-TSX; $4.9 billion market cap).  He succeeded in spades, moving millions of dollars in annual revenue online for them.

Bibby is replicating that success even faster than he expected at his new EV charging company.  It’s because of their flexible business model and open standards—customers can own, lease, or subscribe to “charging as a service”, or just their software, and because his solution works with almost ALL EV chargers his solution is so much better.  He has already replaced chargers from existing providers!

They do all the management, handle all the billing, can add the loyalty cards, advertising—everything.  They make everybody win—the owner of the charger, the EV driver—and us shareholders! 

We Have Ten Years TopsTo Get This Infrastructure In Place

 Bibby’s sales pipeline is soaring.  That’s because potentially every single landlord in North America is having to make a call to a company that provides EV charging infrastructure.  They don’t have a choice!  Every business, every personal residence will be doing the same.

The increase in demand isn’t going to be a nice curve upwards.  We are going straight up.  No crystal ball required to figure that out.

We are NOT EVEN CLOSE to being prepared for this.  The EV infrastructure industry in North America is still incredibly small and fragmented.  There are all of six main EV infrastructure operators—and in Canada just a couple.

These companies could be overwhelmed with demand for their services.  This could be like a high school dance with 6 beautiful young ladies and millions of young men looking for a dance partner.

The revenue taps are just starting to open. With EV charging, we are where we were with the railroads in the late 1800s—they are now being built everywhere. Imagine having the contract to install rail ties for that industry back then. Imagine having a paving contract as internal combustion cars started hitting the road in the early 1900s.

DO NOT MISS MY EMAIL TOMORROW!!!!

EV charging infrastructure has one of the world’s biggest tailwinds—electrification.  It has a lucrative business model—with both up-front revenue and a long-term, recurring revenue model. 

Tomorrow, I’m giving you the name and symbol of David Bibby’s company with a smart, flexible business model that that has already won him hundreds of installs—and his next year will be a lot bigger.  Investors have the opportunity to be part of this on Day 1—tomorrow.

Over the past 12 months, the company’s new business pipeline (number of chargers) has increased 30 times and continues to swell on a weekly basis.  That new business pipeline is the window into the future.

Unlike EV manufacturers who get paid once when they sell you a car, the business model for this EV infrastructure business is much, much better. 

Bibby’s company makes money up front at the time of installation—and a long-term recurring revenue stream from charging and use of their software.  As more installations happen, the recurring revenue stream (which is fat margin, high profit, and low cost) is just going to get bigger and bigger. 

This kind of “toll-bridge” revenue is why infrastructure stocks like Brookfield Asset Management (BAM-NYSE/TSX) get such large multiples—it just goes on forever.

Even better—based on recent takeovers in the industry, to me the stock looks like it trades at a very intriguing market cap.  Blink (BLNK-NASD) just bought EB charging which has 1,150 installed chargers for US$23.4 million—that’s over US$20,000 per charger!!

The stock I’m going to present to you tomorrow has an approximately $30 million market cap, and I expect will end this year with 800 chargers sold.  They already have one major customer aiming to install 2,500 more in the next couple years. 

I’ll let you do the math on that valuation. This industry is a great growth opportunity.  We have a ten-year window to squeeze in all the EV infrastructure required for an entire continent/world of electric-powered cars. 

I expect this company to be in play as early as tomorrow—when you get the name and symbol.

BE READY!

 Sources:

https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/09/fact-sheet-biden-harris-administration-proposes-new-standards-for-national-electric-vehicle-charging-network/ https://www.cbc.ca/news/business/europe-combustion-engine-cars-ban-1.663263

Share