Data from the International Energy Agency reflects that demand has been soaring for EVs. Even still, we are still in the beginning stages of adopting the EV trend, the vehicles represent only 2.6% of global auto sales. The recent surge of interest implies substantial growth potential, but one harsh reality hampers the sector’s progression — infrastructure. This private company (with plans to go public through a SPAC) aims to solve infrastructure and convenience issues.
The blank check company, Switchback Energy Acquisition (SBE) recently announced plans for a reverse merger with privately held ChargePoint. ChargePoint’s main focus is to credibly address the infrastructure challenge. If they succeed, it would solidify a position for SBE as one of the pioneers of EV infrastructure . There’s plenty to note in the bullish case for SBE stock.
The convenience factor is critical for overcoming consumer fears about EVs. After all, we’re talking about a brand new and unfamiliar technology for most people. Lack of knowledge about them ranks as one of the reasons why drivers don’t make the switch.
But one of the most important realities holding EVs back is the lack of charging stations in the consumer market. No matter how great an EV is, people want to take advantage of one of its key selling points — at-home “refueling.” Previously that was simply impossible for many Americans. But with ChargePoint’s “edge” charging business, EV’s can start to shed their perception risks.
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Many if not most apartments lack EV charging facilities. ChargePoint aims to rectify with a win-win solution for these types of housing units by offering initiatives for apartment and condominium complexes.
Apartment owners can install ChargePoint’s EV charging stations, attracting a growing number of green-conscious tenants. From there, landlords can extract charging revenue. Plus, the at-home charging stations may incentivize not only new EV purchases but convince tenants to stay longer term.
The bullish case for SBE stock is similar to content delivery networks. In this context, the charging stations aren’t located in some far-flung region of your community. Instead, the infrastructure is right at your parking spot. ChargePoint’s model could become the future standard for EV infrastructure, which would bring immense value to SBE stock. The reverse merger is expected to be completed in the fourth quarter or in the beginning of 2021.