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Volkswagen to Install 2,800 EV Charging Stations in US

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Per Reuters, Volkswagen AG’s electric vehicle infrastructure unit, Electrify America, announced plans to install 2,800 charging stations for the electric vehicles (EVs). Within June 2019, these stations will be set up across 17 major cities of the United States.

The charging stations are located at approximately 500 sites. Almost 75% of this number will be situated at workplaces while the rest in the residential areas.

As part of the court settlement against its DieselGate scandal, Volkswagen agreed to invest $2 billion for developing the electric vehicle infrastructure in the United States.

Volkswagen AG Price and Consensus

 

 

Of the total $2 billion funds allocated to the nationwide progress of zero-emissions vehicles, the company decided to invest $800 million in California.

Also, Electrify America has chosen a few companies for installing these charging stations. The hired companies include SemaConnect, EV Connect and Greenlots.

Per management, a major hurdle in the adoption of electric vehicles is the limited availability of the charging infrastructure.

Price Performance

Over a month, shares of Volkswagen have outperformed the industry it belongs to. The stock has gained 4.1% compared with the industry’s growth of 2.5% during the period.

 



 

Zacks Rank & Key Picks

Volkswagen carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Toyota Motor Corporation (TM - Free Report) , AB Volvo (VLVLY - Free Report) and Honda Motor Company (HMC - Free Report) . While both Toyota and Volvo sport a Zacks Rank #1 (Strong Buy), Honda carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Toyota has an expected long-term growth rate of 6.2%. In the last three months, shares of the company have been up 5.8%.

Volvo has an expected long-term growth rate of 15%. Year to date, shares of the company have surged 63.8%.

Honda has an expected long-term growth rate of 3.8%. In the last three months, shares of the company have rallied 14.7%.

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