Electric vehicle (EV) sales continue to rise globally, but the limited infrastructure may slow further expansion, according to Stephanie Link, chief investment strategist at Hightower Advisors. Speaking at the Benzinga AutoRevolution: The Future of Mobility and EVs event, Link stressed that improving the U.S. power grid is crucial to supporting the ongoing growth in the EV market.

Link noted that "Global electric car sales are up 35% year over year," underlining the growing adoption of EVs. However, she pointed out that the infrastructure needed to sustain this growth lags. "We need the grid to be more modernized," she said, adding that much of the spending has focused on maintaining the existing grid, with limited investment in upgrades.

Infrastructure and Affordability Challenges

Link explained that while demand for electric vehicles is increasing, many consumers encounter difficulties due to the lack of charging stations and aging energy systems. "We haven't spent a lot of money on it—in incremental new money," she emphasized, highlighting the need for significant investments to bring the grid up to date.

Moreover, Link acknowledged the issue of affordability. "The problem is only five of the [new EV models in 2024] are below fifty thousand dollars, and none of them are below thirty thousand dollars," she said, indicating that price points remain a barrier for many potential buyers.

Companies Working to Modernize the Grid

To address these challenges, Link pointed to companies focused on updating the nation's power infrastructure, such as Quanta Services and Eaton. These firms are taking on projects to help improve the capacity needed for EV charging and other electrification efforts. "I just think that the numbers that I'm seeing from these really established companies are just beginning," she explained, referring to Eaton's increasing workload related to grid modernization.

Link also touched on how industries beyond the auto market, such as data centers, depend on grid improvements to meet future power demands. "We are going to spend four trillion dollars between now and twenty-fifty on this electrification, this whole new energy transition," she said, highlighting the scale of investment required.

Long-Term View for Investors

Though the EV market offers strong potential, Link advised that investors must think long-term. "I think you have to have a long time horizon if you're going to invest in this theme," she said, emphasizing the gradual pace of necessary infrastructure improvements. Link offers a clear takeaway: while electric vehicles are set for continued growth, the U.S. must prioritize modernizing its power grid to support the rising number of EVs and future electrification needs.

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