Why Are EV Charging Stocks CHPT, BLNK, VLTA Up Today?

  • EV charging stocks are revving up today on news President Biden is expected to take executive action on climate change.
  • This is likely to translate into meaningful support for U.S.-based EV charging companies.
  • Accordingly, ChargePoint (CHPT) is among today’s big winners, up more than 10% in early trading.
EV charging stocks - Why Are EV Charging Stocks CHPT, BLNK, VLTA Up Today?

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It’s been a volatile year, to say the least, for EV charging stocks. Whether we’re talking about ChargePoint (NYSE:CHPT), Blink Charging (NASDAQ:BLNK) or Volta (NYSE:VLTA), companies involved in providing EV charging infrastructure have seen an incredible number of catalysts and headwinds play out.

Most of the volatility this year has come around changing rhetoric surrounding federal support for EV charging companies. President Joe Biden’s Build Back Better Plan, which was initially expected to pass due to a majority in the House and Senate, has been stalled. Senator Joe Manchin of West Virginia has pushed back on the climate portion of this bill, suggesting it will contribute too much to the federal deficit. This back-and-forth has meant investors are unsure of whether EV charging companies will get funds, or not.

But today, there’s hope once again. These three EV charging stocks are all in the green, as Biden is expected to make announcements around his plans to take executive action on climate change today.

Let’s dive into what’s expected to take place.

Is This the Catalyst That Will Take EV Charging Stocks Higher?

White House officials have noted that President Biden will make a speech today at a former coal-fired power plant (now used to support off-shore wind production) that he will be taking executive action to combat climate change.

With his Build Back Better bill stuck in the mud, this move is expected to advance plans to provide funding to a range of climate initiatives. Among the focal points of his bill has continued to be the advancement of more EV charging infrastructure.

Public funding for this private-led sector is certainly a good thing. Indeed, these EV charging stocks aren’t cash flow positive, and are likely going to need support to scale.

However, larger questions linger for many investors about the sustainability of these companies’ business models. If a company is unprofitable with 1,000 charging stations, it’s unclear if economies of scale will make these operations profitable at 10,000 locations. At least, that’s the take of many who remain bearish on this sector.

For now, it appears these EV charging stocks have momentum.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/why-are-ev-charging-stocks-chpt-blnk-vlta-up-today/.

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