Latest EV Charging Infrastructure ETF Monthly Report | HANetf

Electric Vehicle Charging ETF Key Takeaways | September

The index underwent a routine rebalancing resulting in changes to its composition, which took effect on September 1, 2023. CTEK AB was removed due to breach of turnover requirements, while Fastned BV was added back along with a new addition of Electreon Wireless Ltd.

ALFEN NV (ALFEN.AS) announced a collaboration with OPCHARGE, a prominent charge point operator (CPO) in the Netherlands to deliver abundant green power to the public and commercial domains. OPCHARGE recently secured €32 million in new funding dedicated exclusively to hardware investments in the Dutch EV charging infrastructure. The collaboration aims to establish 30,000 charge points within five years, with the adoption of Alfen's Twin EV charging station for the public domain. OPCHARGE plans to acquire 4,000 Twin stations in the next 30 months, with the potential to expand to 6,000 or more.

Blink Charging (BLNK.OQ) reported Q2 2023 results with revenues of $32.8 million, exceeding the expected $23.48 million, and an increase of 186% year-on-year. The gross profit increased by 528% to $12.3 million. Product Sales increased by 179% to $24.6 million primarily driven by increased sales of commercial chargers, DC fast chargers, and residential chargers, as well as revenues from the 2022 acquisitions. The adjusted EPS for Q2 2023 was a loss of -$0.44, exceeding the consensus EPS estimate of -$0.48.

ChargePoint (CHPT.N) released its Q2 2023 figures, reporting a revenue of $150.49 million, missing the consensus estimate of $152.3 million, however,  a year-on-year growth of 39%. The GAAP net loss for the second quarter was $125.3 million, up from $92.7 million in Q2 2022. The EPS was -$0.35, missing the analyst estimate of -$0.13. It anticipates becoming EBITDA positive by Q4 2023.

EVgo (EVGO.OQ) released its Q2 2023 figures, reporting a revenue of $50.6 million, exceeding the expected $29.6 million and year-on-year growth of 457%. This growth primarily resulted from increase in eXtend™ revenue and charging revenues. The company reported a net loss of $21.5 million, or 8 cents per share, beating the expected 27 cents. The Company added approximately 82,000 new customer accounts during the second quarter, an increase of 55% year-on-year.

EVgo Inc. (EVGO.OQ) announced that Rivian Automotive's R1T and R1S models have been included in the list of compatible EVs for their Autocharge+ program. This allows Rivian drivers to effortlessly initiate a fast charging session on the EVgo network by simply plugging in their vehicle, eliminating the need for app usage, credit card swiping, or an EVgo program card. With Rivian's addition, there are now 30 eligible vehicle models for Autocharge+, offering a streamlined and efficient fast charging experience. Since its launch in September 2022, Autocharge+ has gained popularity, accounting for 13% of all charging sessions on EVgo's nationwide network. 

Wallbox NV (WBX.N) generated a revenue of €33.0 million in Q2 2023, relatively flat compared to Q1 2023. The company delivered almost 350 units of Supernova DC fast chargers in the quarter, a growth of more than 700% growth compared to the Q2 2022. However, the gross margin during the quarter came in lower than anticipated, largely driven by higher revenue contribution from DC charging, and a component supplier issue causing extra return and warranty costs.

Wallbox NV (WBX.N) announced it is working with Kia America to bring bidirectional charging to Kia’s EV9 customers. The companies plan to offer Wallbox’s second generation DC bidirectional charger, Quasar 2, to Kia EV9 customers starting in the first half of 2024.

Kempower (KEMPOWR.HE), the City of Lahti, and Lahti Region Development LADEC have signed a joint growth agreement in Finland to facilitate Kempower's long-term expansion plans and align solutions with the city's offerings. The agreement commits Kempower to evaluate the region as one option when planning future growth investments, while the city will also develop a charging strategy for public spaces and electric transport within the city in cooperation with Kempower. In 2024, Kempower plans to open a production facility in Lahti, doubling its capacity and marking the initial phase of European expansion during 2024-2025.

Beam Global (BEEM.OQ)   reported revenues of $17.8 million in the Q2 2023, a year-on-year growth of 379% and beating the estimate of $15 million. Its gross profit for the quarter was $0.5 million, compared to a gross loss of $0.3 million, in Q2 2022, primarily due to the increase in production levels compared to the prior year.

Fastned (FASTN.AS) reported a revenue of €26.1 million in H1 2023, an increase of 108% compared to H1 2022. The results were driven by strong momentum in the battery electric vehicle (BEV) market. It posted positive underlying EBITDA of €2.8 million for the first time in Fastned history, compared to -€2.7 million in H1 2022.

Zaptec (ZAP.OL) posted Q2 2023 results with a revenue of NOK 355 million, a 134% increase compared to the same period in 2022, beating expectations of NOK 350 million. The quarter witnessed a strong order intake of NOK 445 million, exceeding Q2 2022 by 104%. However, the gross margin for the quarter was 36%, slightly lower than the 42% recorded during the same period last year due to product mix being more favourable to the home segment with lower margins than the pro segment. Despite this, the company's EBITDA reached NOK 23 million, a 96% increase compared to Q2 2022. EPS stood at NOK 0.19, exceeding expectations of NOK 0.09.

Sources available upon request. Please note that all performance figures are showing net data. Past performance is not indicative of future performance. When you invest in ETFs, your capital is at risk.

Macro Outlook

In July, new battery electric car registrations in the EU increased by 60.6%. This surge resulted in a market share of 13.6% compared to 9.8% in July 2022. Most EU markets grew significantly with Belgium (235.9%), Germany (+68.9%) and France (+32.4%) experiencing highest growth. New hybrid-electric car registrations surged by 31.6%. New EU plug-in hybrid car registrations increased by 14.5% driven by strong performance in major markets like the Netherlands (+107.6%), France (+80%), and Spain (+42.7%). However, this was offset by a decline in Germany (-39.5%), the largest market for electric cars.

The European Commission has approved a €350 million scheme to support the rollout of fast charging along German motorways. The fast charging scheme envisages the deployment of 952 high power charging (HPC) points in around 200 motorway locations. The German scheme will see direct grants for the installation of each HPC point, as well as for the operation of the charging infrastructure. The scheme will be open to all companies active in the construction and operation of recharging infrastructure, and the projects will be selected through an open, competitive and non-discriminatory bidding process.

Across the United States, significant investments and legislative actions are driving the expansion of electric vehicle infrastructure and adoption. New York State Governor has announced a $12 million to advance electric vehicle adoption and integration with electric grid. The initiative also seeks to support novel demonstrations of medium- and heavy-duty electric and hydrogen fuel cell technologies. The Colorado Energy Office (CEO) announced $17 million in grant awards through its Direct-Current Fast-Charging (DCFC) Plazas program. The grants will grow Colorado’s network of fast-chargers by more than 20 percent, adding 188 public chargers. The Seattle City Council has passed legislation to increase the number of electric vehicle charging stations in the city. Seattle City Light will now have the authority to lease private property for the installation of city-owned public EV charging stations, and private companies can lease City Light-owned property for their stations. City Light estimates that this new authority will allow for the installation of at least 10-20 additional charging stations over the next two years, with more to follow. By 2030, two out of every three new cars being sold in Washington State must be zero-emission vehicles. In Texas, the Department of Transportation has approved a plan to create a comprehensive border-to-border electric vehicle charging network.

Japan’s government has decided to double its current EV charger installation target to 300,000 by 2030, up from the current 30,000 available nationwide. Japan had initially set a target of 150,000 charging stations by 2030 in its Green Growth Strategy. Japan has set a goal for all new cars sold to be electrically powered by 2035. Tokyo also wants to increase charging speeds and introduce new rules for charging fees based on electricity usage by 2025. The government also plans to replace the term "charger" with "connector" to reflect the capabilities of modern charging stations that can simultaneously charge multiple EVs.

Sinopec, a major Chinese oil company, has adjusted its gasoline demand forecast for China, predicting a peak this year, two years earlier than previously anticipated, due to the rising number of EVs on the roads. EV adoption rates in China have surged, with plug-in vehicles expected to make up 38% of new passenger-vehicle sales in August, a significant increase from 6% in 2020. Over 5% of the passenger-vehicle fleet is now either battery-electric or plug-in hybrid. Demand for diesel for heavier vehicles will keep growing for a bit longer. Electric, fuel cell and battery-swapping options make 12% of light commercial vehicle sales and 4% to 5% of medium and heavy commercial vehicle sales. The heavy-duty figure is likely to reach over 10% by 2025. China's ride-hailing sector is also contributing to this shift, with almost 40% of ride-hailing vehicles being electric, driven by supportive policies encouraging EV adoption. Twenty-two cities across six provinces require new ride-hailing vehicles to be either battery-electric, plug-in hybrid or fuel cell-powered.

Mercedes-Benz will launch its first high-power charging stations in Atlanta, Georgia; Chengdu, China; and Mannheim, Germany in October. By the end of 2024, the automaker plans to have more than 2,000 high-power charging points globally. The long-term goal is to create more than 2,000 Charging Hubs with more than 10,000 charging points by the end of the decade. The network will be powered by 100% renewable energy. 

All sources available upon request. Please note that all performance figures are showing net data. Past performance is not indicative of future performance. When you invest in ETFs, your capital is at risk.

Electric Vehicle Charging ETF Performance
 As of 31/08/2023

 Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/08/2023

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