TotalEnergies (TTE) has made a power move in the electric vehicle (EV) charging market, with its recent acquisition of Noridian CPO, a subsidiary of Wenea Group. This acquisition adds 200 electric vehicle charging sites to TotalEnergies’ portfolio in Spain. It’s worth mentioning that these sites are powered by renewable electricity, echoing the company’s commitment to sustainable practices. These charging sites are strategically placed along major highways and in urban and peri-urban areas across all 17 regions of Spain.
Global Surge in Electric Vehicle Usage
The International Energy Agency reports a significant increase in the demand for electric cars globally. This surge is not confined to developed nations such as China, the United States, and Europe but is also prevalent in developing economies. In line with this trend, BloombergNEF projects a jaw-dropping figure of 100 million electric passenger vehicles on the road by 2026, a substantial rise from 27 million EVs at the end of 2022. Looking further ahead, the report paints a picture of a potential 700 million EVs on the road globally by 2040.
This is a staggering surge, and as the EV market continues to expand, the necessity for a robust EV charging infrastructure becomes increasingly pertinent. TotalEnergies positioning itself as a provider of EV charging solutions aligns with the burgeoning demand in this sector.
Presence in EV Charging
TotalEnergies boasts a significant presence throughout the entire value chain of electric charging. The company not only possesses ample renewable power generation capacity but also operates electric vehicle charging units.
With a focus on promoting the large-scale deployment of electric mobility, TotalEnergies consistently invests in charging infrastructure. Currently, it has over 30,000 charging points in major European cities and Singapore. Moreover, the company supports its professional customers in transitioning to electric mobility by offering deployment and supervision services for charging stations.
Utilities Investing in EV Charging Units
With the surge in demand for EV charging units, utility operators are also getting in on the action. Duke Energy is partnering with Electrify America to install over 700 charging stations across North Carolina, while PG&E Corporation plans to set up nearly 7,500 EV charging stations in Northern and Central California. These strategic moves underscore the recognition of EV charging as a critical element of the energy landscape.
Price Performance
Reflecting on TotalEnergies’ recent performance, its shares have exhibited a respectable 6-month rise of 8.2% compared to the industry’s growth of 9.9%. This indicates the company’s ability to navigate the competitive landscape and its potential to capitalize on the burgeoning EV market.
Image Source: Zacks Investment Research
Zacks Rank & A Key Pick
At present, TotalEnergies holds a Zacks Rank #3 (Hold). For investors seeking a more favorable option in the same sector, RGC Resources (RGCO) with a Zacks Rank #2 (Buy) could be a worthy consideration. Notably, RGC Resources has demonstrated an average positive earnings surprise of 198.3% over the past four quarters. Moreover, the Zacks Consensus Estimate indicates promising year-over-year growth for fiscal 2024 and 2025, further underlining its potential.
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