Here’s why the EVGo, Blink, and ChargePoint stocks are crashing

By:
on Apr 12, 2024
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  • EV charging companies have crashed hard this year.
  • They have dropped because of the woes in the EV industry.
  • Their recent results showed that they lost over $795 million in 2023.

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EV charging stocks are not doing well this year. EVGo stock price has crashed by over 42% in 2024 while ChargePoint is down by 29.4%. Blink Charging, another big player in the industry, has tumbled by 24.1% this year.

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EV Charging companies should be thriving now that the number of electric vehicle companies in the United States has continued rising. A recent report established that the number of EVs sold in the country jumped to over 1.3 million in 2023.

While the EV industry is slowing, it will continue being a major market in the US as some states put in mandates. Also, the industry could benefit from the ongoing retreat of EV prices.

Guilty by association

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However, EV charging companies are not doing well as their stocks have been in a freefall. EVGO shares are down by over 67% in the past 12 months while ChargePoint and Blink have retreated by 81% and 65% in the same period.

This crash happened even as some of these companies demonstrated robust revenue growth. Blink Charging’s revenue surged from $59.7 million in 2022 to over $139.6 million in 2023. 

Similarly, EVGO’s revenue jumped from $54 million to $161 million. The only laggard was ChargePoint, which went through major challenges in 2023. Its total revenue rose from $448 million to $481 million in 2023.

There are two main reasons why these stocks have plunged. First, these companies are simply guilty by association now that the EV industry is going through major challenges as growth slows. Most EV companies like Tesla, Rivian, and Lucid Motors have all plunged by over 30% this year.

As a result, companies associated with EVs have all plunged hard in this period. For example, QuantumScape, which is researching solid-state batteries, has dropped by 13% this year.

They are all losing money

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Second, the stocks have retreated because their growth has come at a cost. EVGo had a net loss of over $135 million in 2023, an increase from the $106 million it lost in 2022. 

Similarly, ChargePoint’s net loss jumped from $345 million to $457 million while Blink Charging’s loss jumped from $91 million to $203 million.

These companies will likely continue making these losses, pushing some of them to raise capital this year. Also, they will continue facing intense competition from gasoline station companies like BP and Shell. The competition will also come from Ionna, a company formed by OEMs like BMW, Honda, GM, and Hyundai

However, in the long term, I believe that some of these companies will do well as they slow their capital infrastructure. In this case, while this is a high-risk and high-reward proposition, I would prefer EVGo and Blink Charging over ChargePoint.

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