Reports of Tesla’s layoffs in the Supercharger unit benefit Blink’s business
- Blink Charging CEO says drop in EV sales is mostly a Tesla problem
- Reports of Tesla’s layoffs in the Supercharger unit has been good for Blink’s business
- Blink’s stock initially rallied before closing slightly lower
- Blink reported a narrower-than-expected first-quarter loss and revenue above forecasts
- Other leading EV manufacturers reported EV sales growth of over 50% in Q1 2024
- Blink has received inquiries and is poised to take advantage of the momentum
- Tesla plans to spend over $500 million to create thousands of new EV chargers
- Blink’s first-quarter net losses narrowed and total revenue jumped 73.3%
- Blink reiterates its full-year 2024 revenue target and expects profitability by December 2024
- Blink’s stock has lost 16.8% year to date, while Tesla shares have tumbled 32.2%
Shares of Blink Charging Co. initially rallied Friday, before reversing course to close slightly lower, after the provider of electric-vehicle charging equipment and services suggested the recent news regarding Tesla Inc.’s Supercharger unit was actually good for business. Blink Chief Executive Brendan Jones also looked to ease concerns that overall demand for EVs was falling, saying it was mostly a Tesla problem. Blink’s stock BLNK, -0.70% rallied as much as 7.7% intraday, but a late-day selloff took it down 0.7% to $2.82 at Friday’s close. The company had reported late Thursday a narrower-than-expected first-quarter loss and revenue that rose above forecasts. Meanwhile, Tesla’s stock TSLA, -2.04% closed down 2% at $168.47. On the company’s post-earnings call with analysts late Thursday, Jones acknowledged that there was “a bit of a decline” in the number of EVs sold during the first quarter as compared with the fourth quarter. “This decline is primarily due to Tesla volumes, as the other nine leading EV manufacturers, excluding Tesla, reported EV sales growth of over 50% in [the first quarter] of 2024,” Jones said, according to an AlphaSense transcript. Hyundai, Kia, Ford, Mercedes, Cadillac and BMW are among those other nine EV makers, he said. Needham analyst Chris Pierce asked on the call what the “Tesla news” meant for Blink’s business, referring to recent reports that Tesla laid off about 500 employees as the Supercharger unit was closed. Jones responded: “[I] think the thing that we can say factually is we’ve received quite a bit of inbound inquiries already when the news came out, and we put ourselves in a position that we’re poised to take advantage of them when they actually materialize into an offer order and order. So, yes, it has created some momentum for us.” Following Jones’s comment, Tesla CEO Elon Musk tried to dispel the notion that the Supercharger business was dead, saying Tesla planned to spend more than $500 million to create thousands of new EV chargers. Blink reported first-quarter net losses that narrowed to $17.2 million, or 17 cents a share, from $29.8 million, or 53 cents a share, in the same period a year ago. That beat the FactSet consensus for a per-share loss of 23 cents. Total revenue jumped 73.3% to $37.6 million, above the FactSet consensus of $34.6 million. Product sales increased 68% to $27.5 million, with the company citing “strong demand” for charging equipment and services, while service revenue was up 72% to $8.2 million amid greater utilization of chargers in both the U.S. and internationally. The company reiterated its full-year 2024 revenue target of between $165 million and $175 million and said it expects to continue to achieve profitability on an adjusted Ebitda basis by December 2024. Ebitda refers to earnings before interest, taxes, depreciation and amortization. Blink’s stock has lost 16.8% year to date, while Tesla shares have tumbled 32.2%. Meanwhile, the S&P 500 SPX has gained 9.5% this year.
Factuality Level: 3
Factuality Justification: The article provides a mix of relevant information about Blink Charging Co. and Tesla Inc., but it includes unnecessary details and tangential information that do not contribute significantly to the main topic. The article also lacks depth in analysis and fails to provide a balanced view of the situation.
Noise Level: 2
Noise Justification: The article provides relevant information about Blink Charging Co. and its performance in response to recent news about Tesla Inc.’s Supercharger unit. It includes details about Blink’s stock performance, CEO’s comments, analyst inquiries, and financial results. The article stays on topic and supports its claims with data and quotes from company officials. Overall, the article offers valuable insights into the EV charging industry and the impact of Tesla’s news on Blink’s business.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the stock prices of Blink Charging Co. (BLNK) and Tesla Inc. (TSLA). It discusses the impact of recent news regarding Tesla’s Supercharger unit on Blink Charging’s business and stock performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: There is no mention of an extreme event in the article.
Public Companies: Blink Charging Co. (BLNK), Tesla Inc. (TSLA), Hyundai (undefined), Kia (undefined), Ford (undefined), Mercedes (undefined), Cadillac (undefined), BMW (undefined)
Key People: Brendan Jones (Chief Executive Officer), Chris Pierce (Analyst), Elon Musk (Chief Executive Officer)
Reported publicly:
www.marketwatch.com 
