One of today’s biggest movers to the downside is electric vehicle (EV) charging company Blink Charging (NASDAQ:BLNK). As of early afternoon trading, BLNK stock has dropped more than 10%. This move comes as the company announced that it received a Securities and Exchange Commission (SEC) subpoena in July.

This subpoena appears to be tied to a number of events spanning the past three years. Reportedly, the company has been requested to produce documentation tied to executive departures (and related-party transactions), and various disclosures made on key data points, since Jan. 1, 2020.

Blink’s executive team has noted that the company is fully cooperating with regulators. However, the company has also said that it can “provide no assurances as to the outcome of the SEC investigation,” casting doubt as to the extent and voracity of the investigation into the company.

Let’s dive into what this news means for investors right now.

BLNK Stock Sinks on SEC Subpoena

Any time a given company receives an SEC subpoena, it’s generally not good news. The SEC generally doesn’t pursue matters to this extent unless there’s something to investigate. Accordingly, while the number of EV charging stations has been listed as one disclosure the SEC is looking at, it’s unclear how broad this investigation will ultimately be.

For now, it’s that uncertainty that’s likely driving the incredible downside move in BLNK stock today. Blink has been among the notable under-performers in this sector this year, having lost roughly 50% of its value on a year-to-date basis alone. That’s saying nothing of the much steeper drop the stock has seen since its previous peak.

My view is that this investigation may provide a significant overhang for the stock for some time. Until there’s some clarity with respect to the outcome of this investigation, many institutional investors are likely to steer clear. Thus, retail investors looking to buy the dip in this name should take caution, as selling pressure may only just be starting to pick up.

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.