California is about to ban the sale of all new gasoline-powered cars by 2035 – here are 3 EV stocks that could blow up if other states follow suit

California is about to ban the sale of all new gasoline-powered cars by 2035 – here are 3 EV stocks that could blow up if other states follow suit

California is about to ban the sale of all new gasoline-powered cars by 2035 – here are 3 EV stocks that could blow up if other states follow suit

California is about to ban the sale of all new gasoline-powered cars by 2035 – here are 3 EV stocks that could blow up if other states follow suit

Whether you like electric vehicles or not, it’s hard to deny that we’re seeing more and more of them on the road. Even manufacturers known for making V8s in the old days are now electrifying their fleet.

The reason is not just consumer preference. Regulations also play a critical role.

California, for example, is expected to pass a plan to end sales of gasoline-powered vehicles within the next 13 years. The plan will set interim targets to phase out new gasoline cars and completely ban their sale by 2035.

Daniel Sperling, a board member of the California Air Resources Board, told CNN the move is “monumental”.

Meanwhile, California Governor Gavin Newsom called the plan “one of the most significant steps toward eliminating the tailpipe as we know it.”

Other states typically follow California’s lead when it comes to implementing car emission regulations.

For traditional automakers, it’s not good news. For EV actions, on the other hand, it can serve as a powerful catalyst.

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ChargePoint Holdings (CHPT)

ChargePoint Holdings is solidly positioned for the EV boom.

The company has one of the largest electric vehicle charging networks in the world. It has nearly 5,000 commercial and fleet customers, including 78% of Fortune 50 companies. Since its inception, ChargePoint has delivered over 123 million charging sessions.

Of course, EV stocks weren’t the darlings of the market this year and this EV infrastructure game also got caught in the liquidation. ChargePoint shares are down 31% in the last 12 months.

This could give bargain hunters something to think about.

In the fiscal quarter ended April 30, ChargePoint generated $81.6 million in revenue, marking a 102% year-over-year increase. This was driven by a 122% increase in network billing revenue and a 63% increase in subscription revenue.

JPMorgan analyst Bill Peterson recently reiterated an ‘overweight’ rating on ChargePoint and raised the target price to $20 – about 30% above where the stock is today.

Intermittent charging (BLNK)

With a market cap of around $1.1 billion, Blink Charging is a relatively unfollowed name in the EV stock world.

But it generated very generous returns for previous investors.

In early 2020, Blink Charging was trading at less than $2 a share. Today, it is at $22.69. You do the math.

As the company name suggests, it focuses on the billing side of the business.

Blink has deployed over 51,000 EV charging ports and has over 423,000 registered users. It uses proprietary software that operates, maintains and tracks EV stations connected to its network.

In the first half of 2022, revenue increased 223% year-on-year to $21.3 million.

The growing adoption of EVs is expected to continue to drive massive growth in Blink’s business.

Needham & Company analyst Vikram Bagri has a ‘buy’ rating on Blink and a price target of $27 – implying a 19% upside potential.

Tesla (TSLA)

A list of EV stocks for the future wouldn’t be complete without Tesla.

The EV maker has been in the headlines lately due to the completion of a three-for-one stock split. By breaking a stock into smaller pieces, each piece will be priced lower and more affordable. These small stocks often attract more interest from retail investors. However, note that a split does not change the underlying fundamentals of a company.

And fundamentals still attract growth investors.

In the second quarter, the company delivered 254,695 vehicles, representing a 27% increase over the previous year. Production totaled 258,580 vehicles, an increase of 25% over the previous year.

Tesla’s automotive revenue increased 43% year-over-year to $14.6 billion in the quarter. Total revenue grew 42% to $16.9 billion.

Wedbush analyst Dan Ives recently raised his price target for Tesla while maintaining a ‘performance’ rating.

“We are adjusting our pre-split price target from $1,000 ($333 post-split) to $360, reflecting the 3:1 split as well as Tesla’s improved production outside its main China Giga factory during the year. quarter of September, with a clear impulse towards the end of the year. ,” he wrote in a tweet.

Considering Tesla is currently trading at $295 a share, Ives’ new price target suggests a 22% upside potential.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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