Charge Enterprises, Inc. (NASDAQ: CRGE) Interview: Andrew Fox, CEO
Globally renowned serial entrepreneur with over two decades of experience in executing disruptive approaches to a wide range of industries including media, transportation, real estate, insurance, and consumer staples. Founded numerous companies with multiple successful exits, including Track Entertainment, WantTickets and Way Communications. Angel
investor in over 25 leading startups in healthcare, real estate, infrastructure, and consumer technologies including Fundrise, Lime, Nutrafol, Suzy, and Startup Health. Co-Founder of YJP New York, The Young Jewish Professionals, a not-for-profit organization focused on providing business, educational, and mentoring opportunities for the new generation of Jewish business leaders. President, Chairscholars a non-profit focused on helping young adults attend college on scholarship. Named New Yorker of the Week, one of the “30 Most Influential People in Nightlife” and featured in Crain’s “40 Under 40,“ he has also been featured in Forbes, NY Post, and Wall Street Journal.
Thank you for taking the time to answer my questions about Charge Enterprises. Can you briefly describe the company and its focus for our readers who may be unfamiliar with the company?
Charge Enterprises is at its core is an enabler; we aim to make it easy for our customers and their clients to go electric. We design, engineer, install, and maintain seamless, custom integrated, end-to-end solutions for EV charging and broadband infrastructure.
I read Charge operates in two segments: Infrastructure and Telecommunications. Will you go into detail about the two segments for our investors reading?
We have two business segments, our Infrastructure segment, which includes Advanced Network Services, our wireless 5G infrastructure and smart monitoring business, known as ANS, BW Electrical Services, our electrical contracting services business, known as BW, EV Depot our real estate solutions business for commercial and fleet operators, and Charge Infrastructure, our EV charging infrastructure business, also known as CI; and our Telecommunications segment, which includes PTGi, a cash-flow positive, wholesale telecom, capital light business that provides resources for continued growth in our Infrastructure segment.
The change towards Electrical Vehicles (EV) adoption has risen dramatically over the years with 52% of consumers looking to purchase an EV in the near future. Will you speak to this wave of change towards electrical and how CRGE is positioned to capture this opportunity?
As more EVs are delivered, EV charging infrastructure is essential. Nearly $100BB in investment will be required for the nation’s charging infrastructure needs by 2030. While there are countless companies focused on new hardware, the most critical part of value chain for EV infrastructure is not just the device – it’s the engineering, installation, and service. Approximately 60% of the spend in the space is directly related to engineering, installation, and maintenance. Proper strategy and roll out of EV charging infrastructure is a necessity if the nationwide transition to EVs is going to take place in an efficient manner – we are here to make it easy to go electric.
I recently saw that Charge reported record infrastructure backlog surpassing $100 million! What is the company’s strategy for growth within the EV infrastructure sector?
We offer custom end-to-end solutions for EV charging ecosystems. We pride ourselves on educating our customers, our dedicated white-glove client service, and our ability to engage with our clients throughout the project to develop and execute on all aspects of their EV charging strategy. We accommodate for today’s requirements and engineer for tomorrow’s utilization.
We are deploying a multi-phased strategy, starting where the electric vehicle revolution will be rolled out – the nation’s 18,000 auto dealers. We have an initial goal of reaching 1,000 retail dealership partners by the end of 2025. We are creating a dealer ecosystem that will lead to repeat customers and recurring revenue.
Dealerships are receiving requirements directly from the automakers to install charging infrastructure. As published by many OEMs, dealerships will not be able to sell or service electric vehicles if they do not meet the infrastructure and charging requirements by certain deadlines.
We believe there is tremendous potential for many other verticals, such as fleet, hospitality, multi-family housing, big-box retail among others as real estate owners realize the need for EV charging infrastructure as a vital need for their portfolios.
What challenges is CRGE facing, if any?
The biggest challenge to date is a lack of understanding of EVs and the necessary EV charging infrastructure. A significant amount of our client engagement process revolves around education and helping our clients understand their options and their future needs.
CRGE’s recent collaboration with Eaton, an intelligent power management company, is an exciting opportunity. Will you speak to the potential this collaboration has?
We are constantly pursuing opportunities with companies that are eager to expand in the EV charging sector in order to provide our clients with the best solution for their individual needs. Eaton’s desire to expand into fleet EV charging technology will allow us to provide a unique offering for fleet clients when we combine Eaton’s ability to develop new technology with our ability to plan, design and execute on the infrastructure.
What is your perspective on the total addressable market for CRGE?
It has been estimated that approximately $95 billion of investment will be required domestically to adequately supply EV charging infrastructure nationwide by 2030. With auto OEMs releasing new requirements and goals constantly, we believe that much like the broadband industry, there will be multiple generations of EV charging infrastructure that will need to be installed, maintained, and serviced for years to come. There will be a nationwide push for services that help enable this transition and we are excited to play a role.
Thank you for your time.
To find out more about Charge Enterprises, Inc. and access a Free Research Report visit: https://profiles.smallcapsdaily.com/CRGE/