EV companies are on a sharp incline, but the infrastructure is still chasing the tail of the new-age innovators. In order for EVs to work as a cultural transition, charging apparatus needs to be as homogenous as it is affordable; an endeavor some companies are working heavily towards. Blink Charging, alongside the likes of EVgo and ChargePoint, are the pioneers of the EV charging industry; yet they are yet to reap the rewards.
Generally, these companies won’t be truly profitable until EVs are much more commonplace. It’s state grants that have been the lifeline for these companies. Today, Blink Charging (NASDAQ: BLNK) announced it has been awarded grants from the Massachusetts Department of Environmental Protection (MassDEP) for the installation of 8 dual-port DC fast-charging stations across the state.
Understandably, the markets haven’t been particularly kind to EV charging companies’ lack of financial foundations. Blink has depreciated around 75% from its public debut, with a similar story seen amongst its competitors. So how much do incentives play a part? Blink was awarded $800,000 from MassEVIP for its strategic installation, allowing the company to hone in on fast-growing EV markets where the transition is supported by the state.
As made clear by Brendan Jones, President of Blink Charging:
“We are thrilled to have been awarded grant funds from MassDEP to continue expanding EV charging access in Massachusetts. The northeast is a rapidly growing EV market. It is one in which we have been successful in being selected for multiple grants and rebate awards”
“Continuing to build-out high-density areas and high-traffic corridors will further accelerate consumer adoption of EVs. These new DC fast charging locations will provide Massachusetts residents and travelers with the confidence in the state's charging infrastructure needed to help drive the electric mobility transformation.”
We are still some time away from widespread EV usage, and even further away from Blink recording noticeable profits. Blink is resting on state incentives for its continued expansion, and so still appears as a risky play in the immediate future.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.