Tritium Stock: A Global EV Charging Play
Big oil may have a bad name, but it’s in no danger of being replaced by electricity anytime soon. Some developed markets may be seeing traction with electric vehicles, but for emerging markets – where 85% of the world’s population live – petrol-powered vehicles are going to be around for a long time. That’s why the pick-and-shovel thesis for electric charging needs to be scrutinized a bit.
People won’t adopt electric vehicles unless there are plenty of places to charge them. Corporations won’t deploy electric vehicle chargers unless there are plenty of customers with electric vehicles. This Catch-22 creates a problem for any company that wants to make money off electric vehicle charging. Perhaps the best business model is to sell the chargers and software and let someone else worry about recouping the costs. That’s precisely the business model that’s been adopted by Tritium, a company that recently decided to go public using a special purpose acquisition company (SPAC) called Decarbonization Plus Acquisition Corporation II (DCRN).
