US EV-charging firms to struggle with finances, investment in 2024

UNITED States electric vehicle (EV) charging installations fell significantly last year as companies grappled with financial challenges, according to a BloombergNEF (BNEF) report.

US public charging installations were 76 per cent below BNEF’s forecast in 2023 and they are expected to lag behind China and Europe this year, the report said. The lack of investment from charging operators could be in part attributed to the companies awaiting federal funds from a national electric vehicle infrastructure programme, BNEF said.

ChargePoint Holdings and Electrify America grew slightly in 2023, adding just 410 and 588 fast chargers, respectively, the report noted. EVgo added 850 fast chargers compared with Telsa, which installed 6,000. ChargePoint, Electrify America and EVgo did not immediately return requests for comment.

“Charging companies will struggle with the challenging financial climate and poor performance in 2024, leading to more acquisitions as companies look to grow and survive,” the BNEF report said.

Charging installers have found it difficult to compete in the US with Tesla, which has built a vast network of plugs with a different connector design than those from the rest of the industry. Shares of charging companies were hammered last year as operators struggled with sluggish sales.

ChargePoint, which operates the largest US EV charging network, lost 75 per cent of its market value last year and replaced its chief executive officer. BLOOMBERG