Because I believe that the future of EVs is going to be highly dependent on charging stations, perhaps now is the time to take an EV-pause.
There was a recent Wall Street Journal article that addressed this issue.
It was titled:
“Investors Sour on EV Charging Companies”
It pointed out that EV charging companies have fallen from lofty valuations as concerns mount about their profitability.
Meanwhile from Jalopnik:
“Investors Are Bailing On EV Charging Companies Because They Might Not Make Any Money.”
“Right now, the reality for electric vehicles is pretty grim. People are buying EVs, but the growth in sales is cooling. That’s having a ripple effect, from rising EV inventory at dealers to automakers rethinkingtheir EV investments and production plans. Even EV charging companies are taking a hit.
EV charging companies that were once the apple of investors’ eyes have seen their valuations drop and investors turn away as The Wall Street Journal reports. Several factors, including more automakers pivoting to use Tesla’s NACS (North American Charging Standard), have seen shares of companies like EVGo and ChargePoint tumble.
ChargePoint Holdings have tumbled 74% this year, and the company missed initial revenue projections for the third quarter. Blink Charging shares have dropped 67%, while EVgo is down 21%, and both project annual losses.
From the Washington Examiner:
“The drop in shares comes as the nationwide adoption of EVs faces several obstacles, including a slowing demand, high costs, and a lack of charging stations. A recent survey by S&P Global Mobility found that 44% of respondents were concerned about the availability of charging stations.”
From Politico:
“Congress at the urging of the Biden administration agreed in 2021 to spend $7.5 billion to build tens of thousands of electric vehicle chargers across the country, aiming to appease anxious drivers while tackling climate change.
Two years later, the program has yet to install a single charger!!
While federal officials have authorized more than $2 billion of the funds to be sent to states, fewer than half of states have even started to take bids from contractors to build the chargers — let alone begin construction.”
Note that most stock is bought because the buyer anticipates the stock to rise in value in the future. If the stock price is dropping, then the outlook is not good, and this seems to be what has happened to the stock of EV charging companies.
1/9/24