Shares of electric-vehicle charging companies surged Monday after the House passed an infrastructure package that earmarks billions of dollars for a national network of EV chargers. The House passed the bipartisan bill Friday evening , after the Senate approved the package in August. The bill will now go to President Joe Biden, who could sign it within days. The package outlines $550 billion in new federal spending, with $7.5 billion outlined for EV charging infrastructure. The funding is meant to jump-start the move towards EVs, with a national network of chargers fueling greater EV adoption. "Biden is expected to sign the law as a next step with ramifications for U.S. Energy Transition expected to be significant, especially for EVs and EV charging," Evercore ISI analysts noted. Shares of ChargePoint Holdings were up more than 9% in early trading Monday. The company is a vertically integrated pure-play EV charging name, selling charging hardware to customers, which it then turns into recurring revenue through a cloud-based software support system. The company went public earlier in 2021 after merging with special purpose acquisition company Switchback Energy Acquisition Corporation. EVgo also jumped more than 14%. "EVgo is a market leader and first mover that builds, owns, and operates DC fast chargers for EVs that are 100% powered by renewable energy," Credit Suisse said in a September note to clients while initiating coverage on the stock with an outperform rating. The firm added that EVgo is the largest publicly traded fast-charging company in the U.S. as measured by number of locations, and pointed to its partnerships with automakers as supporting future growth. The bill's passage follows an ambitious electric vehicle target for the U.S. In August, Biden signed an executive order calling for electric vehicles to account for 50% of new car sales by 2030 . Volta was also on the move Monday, jumping 8%, while Blink Charging jumped 8.8%. Despite Monday's moves, all four names are down for 2021 amid investor concerns that include stretched valuations. ChargePoint is the group's worst performer, with shares down 32% year to date. Analysts at Needham also pointed to supply chain issues and chip shortages as contributing to this year's underperformance. Still, the firm reiterated its buy rating on ChargePoint, Volta and Blink Charging in an Oct. 28 note to clients, pointing to improving macro fundamentals and strong revenue opportunities. "Growth in EVs is inevitable, we believe, but the transition will take time," the firm said. "We think the space is a LT play and the recent pressure has created an opportunity to gain exposure." —CNBC's Michael Bloom contributed reporting.
