EV charging stocks are racing higher.
All after President Biden announced the first round of funding for an EV charging network.
In fact, he just approved the first $900 million to build out EV chargers across 53,000 miles of highway across 35 states. “You all are going to be part of a network of 500,000 charging stations — 500,000 — across the country, installed by the IBEW,” Biden said, referring to the International Brotherhood of Electrical Workers labor union, as noted by CNBC.
Even better, 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.
And, 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.”
That’s great news for stocks such as:
Blink Charging (BLNK)
Over the last few weeks, shares of BLNK ran from about $18 to $22.64. From here, we’d like to see it challenge prior resistance around $30, near-term. The company just beat on revenue with $11.5 million. That was higher than expectations for $8.6 million.
“Our second quarter results are indicative of the fundamental strengths of our business due to organic growth as well as growth from acquisitions,” stated Michael D. Farkas, Chairman and CEO. “We have launched several new products throughout the first six months of 2022 that address charging demands across the entire EV ecosystem including home, fleet, multifamily and retail locations, which will be excellent additions to our portfolio of available products. In essence, whether we own and operate or sell hardware, Blink strives to deliver best-in-class products and services.”
ChargePoint Holdings (CHPT)
CHPT has been just as hot, running from about $11 to $18.18. From here, we’d like to see CHPT challenge $21 a share next.
JP Morgan analyst Bill Peterson recently reiterated an Overweight rating on ChargePoint with an $18 price target. ChargePoint has an “attractive and comprehensive strategy built for the long term” with a recurring revenue model that will continue bearing fruit as electric vehicle adoption reaches a tipping point and achieves mass market penetration across passenger and commercial segments, Peterson said, as noted by TheFly.com.
EVgo Inc. (EVGO)
EVGO ran from about $6 to $9.29, and could test $14. The company recently posted Q2 EPS of six cents, as compared to expectations for a seven-cent loss.
“Our results for the second quarter, together with the milestone EVgo eXtend partnership recently announced, reinforce EVgo’s leadership position in ultra-fast EV charging,” said Cathy Zoi, EVgo’s CEO. “We delivered 10 GWh of network throughput and accelerated customer account additions, demonstrating the growth potential of our business as consumers continue to adopt EVs. As one of the longest running, largest, and most reliable public fast charging operators in the U.S., we could not be more excited about the possibility of accelerating our growth, expanding our partnerships, and helping to enable the wider, faster adoption of EVs across America.”