Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Volta Stock Is A Key EV Charging Play

Published 09/30/2021, 05:44 AM
Updated 09/29/2021, 03:25 AM

Electronic vehicle (EV) charging network Volta Industries (NYSE:VLTA) stock surged after completing its reverse merger with Tortoise Acquisition Corp. II on Aug. 25, 2021. Shares initially sold off after the business combination starting trading under the new symbol as most special purpose acquisition companies (SPACs). However, shares were able to nearly double off those lows, unlike most SPACs. Volta charging stations are located in populated desirable locations where consumers leave their EVs to charge while they are shopping. This is super appealing to advertisers. They are not located in rural areas like other charging networks. The combination of targeted high-end demographics, location, and expansion are growth drivers that Volta expects will generate up to $1.4 billion in revenues by 2025. The spread of COVID vaccinations has enabled consumers and worker to return to in-person engagements and more cars on the road. Volta expects to ride this wave in the new normal driven by advertising revenues. Prudent investors seeking a niche EV charging play can watch for opportunistic pullbacks in shares of Volta.

Volta

The EV charging stocks have not performed well after starting 2021 with frenzy like buying in charging stocks like ChargePoint Holdings (NYSE:CHPT), Blink Charging Co (NASDAQ:BLNK) and Beam Global (NASDAQ:BEEM. The collapse of the SPAC and EV bubble caused these stocks to lose nearly 70% or more of their values as none of them are profitable, despite the growth prospects. While its shares went public near the bottom of the SPAC collapse, investors ponder whether it will share the same fate as its competitors. What differentiates Volta is its already built out the most utilized EV charging network in the U.S. with its strategically located “freemium” stations at supermarket shopping parking lots like Kroger Company (NYSE:KR) and Amazon (NASDAQ:AMZN) owned Whole Foods grocery stores. The Company offers its charging for free for the first 30-minutes. Rather to relying on selling electricity, it collects advertising fees from advertisers utilizing their large-screen displays. EV owners are a high-earning much sought-after consumer demographic that is appealing to advertisers. The success of this model was underscored by the 35% sales spike for advertiser Tolerant Foods. Volta’s charging stations are 100 times more utilized than competitor Electrify America. It’s expected to grow from a network of 1.5K charging stations to over 26,000 shares in 2025, which is a 77% compound annual growth rate (CAGR) at which point the Company expected to generate $1.4 billion in revenues.

International Expansion

The Company also plans to include Europe as part of its expansion plans utilizing the same advertising-supported EV stations. The benefit of this is that Europeans are more familiar with EVs which have a much higher penetration than the U.S. Currently, the Company is only located in 23 states in the US, but plans to continue expanding in the US and abroad in Europe to drive growth.

Volta Inc Stock Chart

VLTA Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provides the near-term perspective of the playing field for VLTA stock. The weekly rifle chart peaked near the $14.39 Fibonacci (fib) level. The weekly rifle chart is uptrending with a rising 5-period moving average (MA) support at $10.59 and upper Bollinger Bands (BBs) at $12.44. The weekly stochastic has a mini pup oscillation up through the 50-band. The daily rifle chart forms a 60-minute market structure low (MSL) buy trigger above $11.62. The daily market structure high (MSH) sell triggers on a breakdown below $11.05. The daily upper BBs are rising at $14.89 but the 5-period MA is stalling at $12.39 as stochastic falls lower to set up a make or break. Bull case is for the stochastic to cross back up and shares spike up through the daily 5-period MA towards the daily upper BBs. Bear case is for the stochastic mini inverse pup to cause the 5-period MA crossover down through the 15-period MA for a breakdown towards the lower fibs. Prudent and risk-tolerant investors can watch for opportunistic pullback levels at the $11.47 fib, $11.05 daily MSH trigger, $10.49 fib, $10.05 fib, $9.74 fib, $9.42 fib, and the $8.72 fib. The upside trajectories range from the $15.31 fib upwards to the $17.94 fib.

Original Post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.