Weakness in EV Charging Stocks May be an Opportunity

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FILE PHOTO: An electric vehicle fast charging station is seen in the parking lot of a Whole Foods Market in Austin

Electric vehicle charging stocks could be solid long-term winners.

That includes Blink Charging (BLNK) and ChargePoint (CHPT).

For one, according to Fortune Business Insights, “Governments worldwide are contributing towards setting up the charging stations. For instance, the Chinese government has approved the development of fast-charging stations by national policies. Similarly, in the United States, the government is offering all its support and funds to develop EV charging stations.”

Two, California is set to prohibit the sale of gasoline-powered calls by 2035.

“The rule, issued by the California Air Resources Board, will require that 100 percent of all new cars sold in the state by 2035 be free of the fossil fuel emissions chiefly responsible for warming the planet, up from 12 percent today. It sets interim targets requiring that 35 percent of new passenger vehicles sold in the state by 2026 produce zero emissions. That would climb to 68 percent by 2030,” according to DNYUZ.com.

Three, the Biden Administration is committed to build a national network of 500,000 EV charging stations by 2030.  And four, earnings growth charging companies, like Blink Charging has been solid.  In its second quarter, the company saw a 64% increase in total revenues to $11.5 million from $4.4million in Q2 2021.  It also saw a 154% increase in service revenues to $2.2 million in Q2 2022, as compared to $0.9 million in Q2 2021.  And it contracted 5,631 charging stations – an increase of 73% over Q2 2021.