CRGE - Charge Enterprises’s Laser-Focused Strategy To Capitalize On The Growing Need For Infrastructure To Support Dealerships As They Transition To EVs
(NewsDirect)
By David Willey, Benzinga
Stay up to date with Chargeas it helps roll out EV infrastructure across America .
Sales of electricvehicles (EVs) continue to rise and are anticipatedto pass 1 million for the first time in 2023. However,managing the transition from internal combustion engines (ICE) toelectric cars is complex and involves boostingconsumer confidence and the infrastructure to support thetransition .
Major car manufacturers like Ford Motor Company (NYSE:F) and General Motors (NYSE: GM) are dependent on theirfranchised dealerships to assist in the adoption of EVs. GM is investing $35billion between 2020 and 2025 to support the EV transition andhas enrolled nearly1,000 dealerships in its Community Charging Program.
Meanwhile, Ford willspend $50billion on EV investments by 2026 , in an effort to increaseits EV adoption rates. 65% of its dealerships have already joined Ford’sEV certification program , which requires each dealership tospend up to $1.2 million on the switch. The majority of this spendinggoes towards installing EV infrastructure.
Overall, original equipment manufacturer (OEM) dealerships arepredicted to spend $5.5billion on EV infrastructure , with an estimated cost of$100,000 to $1 million per store.
Charge Enterprises IsWorking With Dealerships In Transition
As dealerships continue to growtheir share of EV sales , they are reportedly frequently theface of the EV transition and the main point of contact for consumers.In places like Detroit, Michigan, which will be part of a majornew binational EV corridor , dealerships could be essential forgiving car buyers the confidence that the EV network is scaling.
The importance of havingpublic, properly functioning charging stations was underscored in a2022 survey of customer sentiment that revealed widespreadfrustration with malfunctioning EV charging stations . If EVsales continue to increase, the supporting infrastructure appears tobe straining, as charging points can underperform and issues can gounaddressed as they arise.
This problem, combined with the continued push forpublic stations from OEMs and dealerships, could positively impactcompanies like Charge Enterprises Inc. (NASDAQ: CRGE). Chargespecializes in broadband, wireless and EV charginginfrastructure.
Charge plans to deploy a multi-phased strategy, initially whereinvestment in the EV charging revolution is taking place, thenation’s approximately 18,000 franchisedauto dealers . Starting with the largest automotive OEMs, theirdealers, and their fleets, the company’s goal is to capture asignificant portion of these retail dealerships - creating a dealerecosystem that will lead to repeat customers and recurring revenue.Charge plans to execute this strategy while remaining agnostic to thehardware it installs. This means it isn’t competing directly in thecrowded, charging hardware market.
As the charging infrastructure market is so large,Charge has set its sights on the dealership sector, and it is keepingits strategy laser-focused on fulfillment in this sector. The companyset the goal to collaboratewith 1,000 dealerships by the end of 2025, and it has alreadymade significant gains toward this goal, reaching 15% of its target bythe end of the first quarter of 2023. Based on the current backlog,pipeline data, and current industry pricing, the company believes theinitial installation projects at these 1,000 locations could representapproximately $365 million in potential revenue upon completion of allphases of the projects.
Thecompany was featured in a recent Forbes article thathighlighted the upward trajectory of Charge as it deepens its positionin the EV market. As of March 31, 2023, its EV division made up 20% ofthe $107 million of reported backlog within the company’sinfrastructure segment, and the company worked with 20 differentbrands in the last quarter alone.
Ithas also already collaborated with leadingpower and EV development companies , while maintaining itsflexible, capital-lite approach to the market.
ChargeEnterprises Inc. operates as an electrical, broadband, and electricvehicle (EV) charging infrastructure company. The company providesclients with end-to-end project management services, includingadvising, designing, engineering, acquiring and installing equipment,monitoring, servicing, and maintenance. It operates in two segments,Infrastructure and Telecommunications. The Infrastructure segmentoffers broadband and wireless, electrical contracting, electricvehicle charging, and fleet services. The Telecommunications segmentprovides internet-protocol-based and time-division multiplexing accessfor transport of long-distance voice and data minutes; domesticswitching and related peripheral equipment services, and carrier-graderouters and switches for internet and circuit-based services, as wellas connection of voice calls and data services. The company wasformerly known as TransWorld Holdings Inc and changed its name toCharge Enterprises, Inc. in January 2021. Charge Enterprises, Inc. wasincorporated in 2003 and is based in New York, NewYork.
This post contains sponsored content. This contentis for informational purposes only and is not intended to be investingadvice.
Contact Details
ChristinePetraglia
CompanyWebsite
Copyright (c) 2023 TheNewswire - All rights reserved.