Although the businesses that set up and run the networks for charging EVs are experiencing a surge in construction, their stock values are faltering. The stock of ChargePoint Holdings has fallen 74% so far this year, and the company’s original revenue estimates for the third quarter still need to be met.
Shares of EVgo are down 21%, and Blink Charging has plunged 67%; both companies anticipate annual losses. The charging providers face the possibility of Tesla, the market leader in Electric Vehicles, giving up a large portion of its well-known charging network to other drivers starting in 2024, and they don’t anticipate becoming profitable for around a year.
EV sales facing difficulties
The explosive surge in EV sales in the US has slowed. According to certain executives in charge of charging, they face difficulties such as consumer apprehension regarding the economic outlook, escalated expenses, and postponed Electric vehicle deliveries to fleet clients.
According to companies, as more EVs are driven, the number of Electric Vehicles chargers being used continually rises, which is a significant indicator of the growing sector. Due to relatively low use rates, selling drivers electric shocks is still not profitable. Analysts were recently informed by EVgo executives that they anticipate profitability “in the next couple of years.” By the end of next year, ChargePoint and Blink anticipate that their adjusted earnings will be positive before interest, taxes, depreciation, and amortization.
By 2030, President Biden wants 500,000 public chargers installed. According to consulting firm McKinsey, if half of all car sales were electric by then, some 1.5 million public chargers would be required. Government data indicates that there are about 60,000 public charging ports in the United States, numbering about 159,000.
