Key points:
- Blink Charging enters new partnership with Bridgestone Retail Operations
- Stock gained around 4% before retracing slightly, BLNK is down 66% year-on-year
- The company is continuing to expand, yet the future might not be all that bright
EV charging companies can be viewed under two different scopes. The primary highlights EV charging as a critical, unavoidable part of future travel; as demand increases, charging technology needs to move in alignment with the broad emergence of EV companies and hence companies like Blink, who offer widespread charging integration into key locations, should warrant some popularity looking forward.
The latter, however, suggests that currently there is little chance for profitability in the EV charging space based on a long-winded business model with a narrative guided by consistent spending, and little revenue – especially bearing in mind that only 2% of current vehicles are electric.
Read Also: Best EV Stocks To Buy Right Now
Blink Charging (NASDAQ: BLNK), a leading competitor in the EV charging space, looks relatively strong on paper. Today’s partnership with Bridgestone Retail Operations will see the deployment of 50 Blink IQ 200 charging stations across 25 Firestone Complete Auto Care and Wheel Works service centers.
This partnership marks the latest in a promising line of deals, including with industry-giant GM; but the business model seems a little far-fetched, especially with the company’s distance to profitability, which requires a much wider face of sustained, homogenous EV use.
Perhaps Blink Charging might be able to capitalize on its deployment in retail spaces, but it still seems a long-winded journey at a time when the company is spending more on operations than it is generating in revenue. Of course, this could change with wider EV adoption, but Blink’s model is currently easily contested. BLNK stock jumped 4% today on the news, but is down 66% year-on-year, and doesn’t show much sign of stopping any time soon.
