S&P 500   5,126.84 (+0.60%)
DOW   39,075.28 (+0.20%)
QQQ   444.13 (+1.17%)
AAPL   178.09 (-1.47%)
MSFT   413.63 (+0.00%)
META   499.69 (+1.95%)
GOOGL   137.92 (-0.39%)
AMZN   177.94 (+0.67%)
TSLA   202.48 (+0.30%)
NVDA   819.13 (+3.54%)
NIO   5.82 (+1.22%)
AMD   201.03 (+4.41%)
BABA   74.74 (+0.96%)
T   16.99 (+0.35%)
F   12.47 (+0.24%)
MU   95.37 (+5.25%)
CGC   3.26 (-0.91%)
GE   159.00 (+1.34%)
DIS   111.85 (+0.24%)
AMC   4.46 (+3.24%)
PFE   26.63 (+0.26%)
PYPL   60.50 (+0.27%)
XOM   105.94 (+1.36%)
S&P 500   5,126.84 (+0.60%)
DOW   39,075.28 (+0.20%)
QQQ   444.13 (+1.17%)
AAPL   178.09 (-1.47%)
MSFT   413.63 (+0.00%)
META   499.69 (+1.95%)
GOOGL   137.92 (-0.39%)
AMZN   177.94 (+0.67%)
TSLA   202.48 (+0.30%)
NVDA   819.13 (+3.54%)
NIO   5.82 (+1.22%)
AMD   201.03 (+4.41%)
BABA   74.74 (+0.96%)
T   16.99 (+0.35%)
F   12.47 (+0.24%)
MU   95.37 (+5.25%)
CGC   3.26 (-0.91%)
GE   159.00 (+1.34%)
DIS   111.85 (+0.24%)
AMC   4.46 (+3.24%)
PFE   26.63 (+0.26%)
PYPL   60.50 (+0.27%)
XOM   105.94 (+1.36%)
S&P 500   5,126.84 (+0.60%)
DOW   39,075.28 (+0.20%)
QQQ   444.13 (+1.17%)
AAPL   178.09 (-1.47%)
MSFT   413.63 (+0.00%)
META   499.69 (+1.95%)
GOOGL   137.92 (-0.39%)
AMZN   177.94 (+0.67%)
TSLA   202.48 (+0.30%)
NVDA   819.13 (+3.54%)
NIO   5.82 (+1.22%)
AMD   201.03 (+4.41%)
BABA   74.74 (+0.96%)
T   16.99 (+0.35%)
F   12.47 (+0.24%)
MU   95.37 (+5.25%)
CGC   3.26 (-0.91%)
GE   159.00 (+1.34%)
DIS   111.85 (+0.24%)
AMC   4.46 (+3.24%)
PFE   26.63 (+0.26%)
PYPL   60.50 (+0.27%)
XOM   105.94 (+1.36%)
S&P 500   5,126.84 (+0.60%)
DOW   39,075.28 (+0.20%)
QQQ   444.13 (+1.17%)
AAPL   178.09 (-1.47%)
MSFT   413.63 (+0.00%)
META   499.69 (+1.95%)
GOOGL   137.92 (-0.39%)
AMZN   177.94 (+0.67%)
TSLA   202.48 (+0.30%)
NVDA   819.13 (+3.54%)
NIO   5.82 (+1.22%)
AMD   201.03 (+4.41%)
BABA   74.74 (+0.96%)
T   16.99 (+0.35%)
F   12.47 (+0.24%)
MU   95.37 (+5.25%)
CGC   3.26 (-0.91%)
GE   159.00 (+1.34%)
DIS   111.85 (+0.24%)
AMC   4.46 (+3.24%)
PFE   26.63 (+0.26%)
PYPL   60.50 (+0.27%)
XOM   105.94 (+1.36%)

Volta Stock is a Key EV Charging Play

Volta Stock is a Key EV Charging PlayElectronic vehicle (EV) charging network Volta NASDAQ: VLTA stock surged after completing its reverse merger with Tortoise Acquisition Corp. II on Aug. 25, 2021. Shares initially sold off after the business combination starting trading under the new symbol as most special purpose acquisition companies (SPACs). However, shares were able to nearly double off those lows, unlike most SPACs. Volta charging stations are located in populated desirable locations where consumers leave their EVs to charge while they are shopping. This is super appealing to advertisers. They are not located in rural areas like other charging networks. The combination of targeted high-end demographics, location, and expansion are growth drivers that Volta expects will generate up to $1.4 billion in revenues by 2025. The spread of COVID vaccinations has enabled consumers and worker to return to in-person engagements and more cars on the road. Volta expects to ride this wave in the new normal driven by advertising revenues. Prudent investors seeking a niche EV charging play can watch for opportunistic pullbacks in shares of Volta.

Volta


The EV charging stocks have not performed well after starting 2021 with frenzy like buying in charging stocks like ChargePoint NYSE: CHPT,  Blink Charging NASDAQ: BLNK and Beam Global NASDAQ: BEEM. The collapse of the SPAC and EV bubble caused these stocks to lose nearly 70% or more of their values as none of them are profitable, despite the growth prospects. While its shares went public near the bottom of the SPAC collapse, investors ponder whether it will share the same fate as its competitors. What differentiates Volta is its already built out the most utilized EV charging network in the U.S. with its strategically located “freemium” stations at supermarket shopping parking lots like Kroger’s Giant NYSE: KR and Amazon owned Whole Foods NASDAQ: AMZN grocery stores. The Company offers its charging for free for the first 30-minutes. Rather to relying on selling electricity, it collects advertising fees from advertisers utilizing their large-screen displays. EV owners are a high-earning much sought-after consumer demographic that is appealing to advertisers. The success of this model was underscored by the 35% sales spike for advertiser Tolerant Foods. Volta’s charging stations are 100 times more utilized than competitor Electrify America. It’s expected to grow from a network of 1.5K charging stations to over 26,000 shares in 2025, which is a 77% compound annual growth rate (CAGR) at which point the Company expected to generate $1.4 billion in revenues.

International Expansion

The Company also plans to include Europe as part of its expansion plans utilizing the same advertising-supported EV stations. The benefit of this is that Europeans are more familiar with EVs which have a much higher penetration than the U.S. Currently, the Company is only located in 23 states in the U.S., but plans to continue expanding in the U.S. and abroad in Europe to drive growth.

Volta Stock is a Key EV Charging Play

VLTA Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provides the near-term perspective of the playing field for VLTA stock. The weekly rifle chart peaked near the $14.39  Fibonacci (fib) level. The weekly rifle chart is uptrending with a rising 5-period moving average (MA) support at $10.59 and upper Bollinger Bands (BBs) at $12.44. The weekly stochastic has a mini pup oscillation up through the 50-band. The daily rifle chart forms a 60-minute market structure low (MSL) buy trigger above $11.62. The daily market structure high (MSH) sell triggers on a breakdown below $11.05. The daily upper BBs are rising at $14.89 but the 5-period MA is stalling at $12.39 as stochastic falls lower to set up a make or break. Bull case is for the stochastic to cross back up and shares spike up through the daily 5-period MA towards the daily upper BBs. Bear case is for the stochastic mini inverse pup to cause the 5-period MA crossover down through the 15-period MA for a breakdown towards the lower fibs. Prudent and risk-tolerant investors can watch for opportunistic pullback levels at the $11.47 fib, $11.05 daily MSH trigger, $10.49 fib, $10.05 fib, $9.74 fib, $9.42 fib, and the $8.72 fib. The upside trajectories range from the $15.31 fib upwards to the $17.94 fib. 

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Jea Yu

About Jea Yu

  • JeaYu21@gmail.com

Contributing Author

Trading Strategies

Experience

Jea Yu has been a contributing writer for MarketBeat since 2018.

Areas of Expertise

Equities, options, ETFs and futures; fundamental, qualitative, quantitative and technical analysis and pattern identification; active and swing trading; trading systems and methodology development

Education

Bachelor of Arts, University of Maryland, College Park

Past Experience

U.S. equity markets trader, writer and analyst for over 25 years. Published four books by publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. Speaker at various expos and seminars and has been quoted and featured in USA Today, The Wall Street Journal, Traders Magazine, The Financial Times and various trade publications, including Stocks & Commodities, Active Trader and Online Investor.


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