EV Charging Stocks Could Be a Buy Right Now After Jolt From Tesla and GM Announcement
Key takeaways
- GM announced a partnership with Tesla on its EV charging network, hot on the heels of the Ford news last month
- EV charging stocks have had a difficult time with investors, with most in the negative this year despite more robust earning reports
- EVgo, ChargePoint and Blink Charging are some of the bigger players in the U.S. EV market
Last week was an electrifying time in the EV market as GM became the second major EV producer to announce a partnership with Tesla on its Supercharger EV network. But other EV charging companies felt the sharp end as share prices tumbled. Unfortunately, it’s not unheard of for the sector, which remains down, but not out, in 2023.
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What happened in the EV market on Friday?
GM has officially partnered with Tesla to power its EVs through Tesla’s Supercharger network, the most extensive fast-charging infrastructure in the US. It joins competitor Ford, who made a similar announcement, in converting its charger points to Tesla’s NACS ports.
The result? GM and Tesla saw modest boosts to their share prices, but other EV charging stocks tumbled. EVGo fell 12% and ChargePoint was down 13% on Friday, while Blink Charging slid by 11% and Beam Global fell 4.9%.
It was an all-around disaster day for the EV market. But many analysts now say the reaction was overblown, with plenty of market growth opportunities still to be had.
EV charging stocks to consider
So, assuming Friday’s tumbling shares were an overreaction, how do EV charging company stocks look otherwise? Wall Street appears to have a love-hate relationship with the sector, with most major companies seeing declining stock prices.
EVgo has an ongoing partnership with GM, so the Tesla announcement does raise questions about the company’s future, but it has partnerships with other leading EV brands like Toyota and Subaru. While the stock has dropped 6.57% in value this year and the company currently isn’t profitable, it’s grown its revenue 180% in a year.
Meanwhile, ChargePoint, primarily focused on supporting EV fleets, is doing a lot in the enterprise EV space. Recent moves include a new partnership with Arval and launching an EV charging business with ALD Automotive later this year. The stock is down 8.25% in 2023 and reported better losses than anticipated for Q1, coming in at 15 cents per share loss from $130 million in sales.
Blink Charging has tumbled a whopping 45% this year, despite topping revenue estimates for Q1. It posted $21.57 million in revenue for the quarter, over double its $9.8 million year-ago revenue. The company isn’t staying still, either — today announced a new fast charger design with Tesla’s NACs and CCS connectors included.
The bottom line
EV charging stocks have a pretty weird relationship with Wall Street, especially considering it’s so keen on Tesla. But the stocks are relatively new to the market, with most only going public this decade, so they’re yet to prove themselves to investors. As EV demand grows, expect the same to happen with these companies.
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