Wall Street Journal Piece Brings Up Questions… And We Answer

Stephen Wilmot’s recent article in the Wall Street Journal, “Investors Look for an EV Charge,” debates the merits of investing in EV infrastructure, admitting that while chargers likely make for better investments than cars, the sector still holds many potential pitfalls that should be considered before jumping in. While that may be true, many of the examples backing up this assertion cite the business models of the largest EV installers in the country while failing to consider what less visible but faster-growing companies like EVCS are doing to mitigate such risks. Below are a few quotes from the article and our thoughts on them, including how we’re different.

“Charging-related companies should benefit from EV adoption, whichever vehicles dominate.”

This is true so long as charging companies offer the most convenient and current technology available. Our chargers feature both CHAdeMO and combo SAE J1772 / CCS1 connectors that can work with every EV on the road. Moreover, the majority of our new installations are DC fast chargers, complete with 50kW power, 6000 VAC surge protection and a better than 90% efficiency rating. While chargers may be a better overall bet than cars, they are not all created equal. Quality matters, and the best chargers will win out.

“Which companies are better placed: those that sell charging equipment or those that build and operate networks?”

The prevailing notion is that infrastructure companies need to conform to preexisting business models established by the “big boys,” but what has set us apart is our disdain for such conformity. Our turnkey approach includes sourcing and installing hardware as well as operating our own proprietary network, allowing us total control over the customer experience front to back. And by customers, we mean both site hosts and EV drivers. We also source funding for installations from government subsidies, often resulting in zero cost to the site host and negating the need to “sell.”

“Most EV charging is done at home, but that could change as US ownership broadens beyond Californians with garages.”

There are two salient points to note here. First, EV ownership will invariably broaden beyond California. And as that state’s fastest growing installer, we are well-positioned to carry such momentum to other states as the federal government invests more in infrastructure. Second, EV ownership will continue to broaden beyond homeowners. With more infrastructure at public places and apartment buildings, EV ownership will begin to feel more accessible to all and less like a luxury or novelty. Our model capitalizes on this trend.

“A double-digit return depends on the pace of EV adoption and the wisdom with which the company picks sites.”

We don’t “pick sites.” Our clients do. When a retail business, municipality or multi-unit dwelling reaches out to us, it’s because they see a demand, a need, an opportunity. Further, many of these properties are located in underserved communities that might not boast the level of traffic needed to attract larger installers, but nonetheless feature huge growth potential, positioning us to capture a new demographic as EVs become more prevalent. We simply offer a no-cost solution to sites that already understand the value of EV charging – whether that’s satisfying existing customers, driving a new income stream or protecting the environment – wherever they may be. Good financial returns, then, result from identifying clients’ needs and addressing them.

Wilmot’s entire Wall Street Journal article can be found here: https://www.wsj.com/articles/how-to-plug-into-electric-vehicle-chargers-11620032526

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“Who’s Saving the Planet?” Podcast Interviews Gustavo Occhiuzzo

EVCS co-founder and CEO Gustavo Occhiuzzo recently spoke on the “Who’s Saving the Planet?” podcast about the electric mobility revolution and what we as a company are doing to help realize a truly carbon-neutral future. During the conversation with hosts Anthony Noto and Jessica Miles, Occhiuzzo made several critical points that help listeners understand where we are now in that mission, the obstacles we face, what EVCS has done to overcome those obstacles, and what we can do better as a global community. Here are some of the most prescient points:

Installation of the Month (June 2021): Hyatt Place Riverside/Downtown

The ability to travel is something many of us take for granted. Our Interstate Highway System allows us to freely traverse state boundaries – to go wherever we choose whenever we choose – from the snow-capped Colorado Rockies to the soupy Everglade swamplands to the historic lighthouses of coastal New England. However, EV drivers are more acutely aware of their travel limitations because many areas of the country have yet to adopt pro-electric infrastructure policies, often leaving them with few ground-travel options other than ICE vehicles. We knew getting more Americans to embrace the electric revolution would require buy-in from the hospitality industry. As such, much of our focus has gone toward hotels that, by serving as site hosts for charging stations, can help kickstart that ubiquitous access required to convert many EV holdouts.

Commentary on EV Industry Profitability Claims

In a recent Driving.ca article titled “EV-Charging Industry is Doing Everything Except Making Money,” author David R. Baker makes a compelling argument that the EV infrastructure sector is a revenue desert, essentially incapable of generating enough cash flow to sustain profitability due to a lack of interest from motorists. “The dilemma boils down to demand,” he states, before adding that “lots of people still driving gasoline-powered cars won’t consider going electric until they see charging stations widely deployed.”

Installation of the Month (May 2021): LADOT Lot 656

The Los Angeles Department of Transportation (LADOT) notes on its website that ICE vehicles are one of the city’s top contributors to air pollution, accounting for 19% of all greenhouse gas emissions, before proclaiming, “We can do better… We’re investing in public transit, testing new technology, and adopting mobility innovations for a cleaner environment and brighter future.” At first, it might just sound like flowery rhetoric, but we can personally attest to that commitment. Starting in 2019, LADOT partnered with us to install DCFCs at 57 city-owned lots, with almost 30% of those installations now completed. This alliance has been integral in promoting our goal of zero-emission mobility in the City of Angels by facilitating greater access to infrastructure.

Addressing Pain Points in Creating EV Infrastructure

A recent GovTech.com article titled “How Biden Plans to Build 500 EV Charging Stations” discusses the President’s goals for creating a nationwide network of 500,000 such installations by 2030. While it does a smart job laying out many of the pain points we face in facilitating EV adoption, the mention of solutions was far less prevalent, and ones that were mentioned seemed speculative or tenuous. However, over the last three years, EVCS has already taken the lead in addressing many of these challenge areas, allowing us to dominate the installation market across the West Coast.