When Blink Charging (BLNK 2.01%) reported its second-quarter results this week, investors tanked the stock. But a month-long surge in the share price resumed not long after, with shares up 56% in just the last 30 days. That surge continued today, with Blink shares up 8.4% as of 3:21 p.m. ET.
While Blink’s revenue soared year over year in the second quarter, so did its costs and therefore its net loss. The stock quickly resumed its recent upward move after earnings, which continues today. Investors seem to be less focused on recent results and more on the promise and potential of the business, as a new tailwind looks to be coming soon.
Should the Inflation Reduction Act (IRA) get passed and signed into law soon, as it’s expected to be, there will be new incentives to grow the EV charging network in this country. The legislation brings added incentives for consumers to buy electric-vehicle chargers. The IRA also includes incentives for clean energy vehicles and refueling property. Bidirectional charging equipment is included in the bill as “qualified alternative fuel vehicle refueling property.” And it specifically calls out charging equipment intended for electric vehicles.
EV charging network companies like Blink are in growth mode and need EV adoption to grow to justify those investments. What appears to be imminent passage of the bill should help the company on both a macro and micro level as charging equipment purchases grow along with the use of EVs.
That helps explain why shares of Blink Charging have made such a huge move in the last month, including today.