A slowdown in the EV industry has already been felt by Tesla, Rivian, and others. In addition to these stocks, there are also other casualties to consider.
The electric vehicle (EV) market may be slowing down, but the impact isn’t limited to just car manufacturers. Companies that build and operate charging networks are also feeling the pinch. Stocks for Blink Charging (BLNK), ChargePoint (CHPT), and EVgo (EVGO) have all seen significant declines in the past year, with some dropping over 80%.
This slowdown comes despite a major push to expand charging infrastructure in the US. Government funding and incentives aim to address range anxiety and encourage wider EV adoption. However, several challenges remain for these charging network companies.
- Competition: Tesla’s dominant Supercharger network puts pressure on smaller players.
- Profitability: Many charging companies are still in the early stages of development and haven’t achieved profitability yet.
- Catching Up: Despite a significant increase in charging stations last year, the US needs to build more to meet ambitious EV sales goals.
The good news? A “gold rush” is underway for federal funding to build new stations. This could be a game-changer for these companies, helping them overcome current challenges and capitalize on the future of electric transportation.