If the U.S. is serious about electrifying millions of cars, we need more charging stations, we said on July 3. “Unfortunately, as it stands now, 46% of EV owners said they’re likely to switch back to gas-powered vehicles because of the lack of charging infrastructure, says a McKinsey report.”
We also made bullish arguments for EVgo (EVGO) and Blink Charging (BLNK).
And then we watched as both exploded higher.
All thanks to optimism over improving electric vehicle sales. In fact, as noted by Cox Automotive, “Electric vehicle sales in the U.S. grew by 11.3% year over year in the second quarter, reaching a record-high volume of 330,463 units, according to new estimates from Kelley Blue Book.” With sales only expected to accelerate, we need more EV charging stations.
On July 3, EVGO traded at about $2.40. Today, it’s up to $4.
Analysts over at Benchmark just reiterated its buy rating on the stock, with a $5 price target.
Plus, the company is seeing higher sales and narrower losses. In its most recent quarter, the company posted an EBITDA loss of $7.2 million on sales of $55.2 million. Analysts were looking for a loss of $13 million on sales of $52.4 million. The company also ended the quarter with 3,200 stalls in operation, growth of about 38% year over year.
As for BLNK, it traded at $2.70 on July 3. Today it’s up to $3.48 and could push even higher, as it piggybacks the latest run in shares of EVGO.