Why Blink Charging Stock Soared 37% This Week

Shares of Blink Charging (BLNK -4.73%) have rallied 37.8% this week as of Thursday’s close, according to data provided by S&P Global Market Intelligence, after the electric vehicle (EV) charging equipment specialist announced the launch of its next-generation EQ 200 chargers in the United Kingdom and Ireland. The stock also benefited from softer-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) data released this week.

On the importance of Blink’s next-gen charger technology

In a press release early Monday, Blink announced it has launched its EQ 200 charger technology in both the U.K. and Ireland. Blink describes the EQ 200 as one of a new generation of compact “vehicle-to-grid, bidirectional chargers designed to boost the development of an effective EV charging infrastructure and enable the switch from static EV charging to more dynamic and sustainable energy management as grid technology develops.”

In particular, the EQ 200 is capable of drawing on energy stored in an electric vehicle’s battery to power other devices in the office or home, charge other EVs, and even feed electricity back into the grid. It’s compatible with roughly 90% of modern electric vehicles, and operates using Open Charge Point Protocol software, which is designed to eliminate the need to upgrade hardware as charging technology advances.

Blink Charging’s rally this week was further spurred when the latest Consumer Price Index report (released on Tuesday) indicated inflation has moderated at a faster-than-expected pace. Then on Wednesday, shares continued to climb after the release of this month’s softer-than-expected Producer Price Index (PPI) data, which measures wholesale input costs.

EV-related stocks like Blink are highly sensitive to rising interest rates and wholesale costs, which can not only impact consumers’ decisions to buy electric vehicles in the first place, but also hurts yet-to-be-profitable, cash-burning EV companies’ ability to raise capital.

What’s next for Blink investors?

“The launch of our grid-ready EQ 200 charger into the U.K. and Irish markets is an important moment for EV charging,” stated Blink Charging U.K. managing director Alex Calnan. Facilities including car parks, depots, and offices now have the option of an advanced solution capable of interacting with smart energy systems.

Miko de Haan, president of Blink Charging Europe, noted that EV sales outpaced expectations in the U.K. last year, accounting for almost 17% of new registrations. Though Blink already has over 2,000 chargers in the U.K. and Ireland, the company says it has “ambitious plans” to expand its reach in the countries to include new commercial and home chargers, global network services, and fleet-management tools.

There’s plenty of work to do, of course, as Blink Charging strives to play a central role enabling the rise of electric vehicles around the world. But given encouraging inflation data and the continued rollout of new products in key countries, it’s hard to blame investors for bidding up the stock in response this week.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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