Additionally, while individuals do not have gas pumps installed at their home, they can have a level 2 ev charger installed that would seriously compromise the market share of a commercial charging station.

Eoin Treacy's view

Thank you for this email which may be of interest to the Collective. The challenge for investors is in differentiating between the addressable market depicted in glossy pitchbooks and the real-world potential for a sector.

I agree, if one is going to the expense of buying/leasing an electric vehicle, it is worth the additional $700-$1000 to get a home charging unit. Some will also deem the expense of installing rooftop solar or a solar roof worthwhile too. The further one goes down the renewables route, the more capital-intensive solutions become. That’s why interest rates and liquidity lie at the heart of the investment argument.  

Most people have too much crap in their garages to park a car in them, so the charging cable snakes out to the driveway. It’s not an ideal solution. Nevertheless, most people in the USA live in houses rather than apartments even if the trend is towards the latter. A charging station network makes more sense in Europe and Asia.

I have long thought that EVs were among the biggest signs of inequality in society. They are more expensive, last less time and require expensive installations to recharge them. Most families need reliability, cost effectiveness, low repair costs and easy refueling. Ultimately, the buildout of a charging network is less about the economic potential for the sector and perhaps more about sending a political signal that there is no going back to internal combustion engines.

Vehicle prices have increased substantially over the last 18 months. It remains to be seen whether companies can make a sustainable profit from building EVs. At a minimum they will need to shed their workforces and stop building internal combustion engines to control costs. That will come with political ramifications.