What happened
Shares of electric-vehicle charging network Blink Energy (BLNK 2.17%) rushed out of the gate Monday, recovering all the losses incurred in last week's 5% decline and pushing the stock up 10.3% through 2:10 p.m. EDT trading.
So what
There's no obvious news behind today's stock's rally -- no news specific to Blink, no analyst upgrades, price-target hikes, or positive press releases from the company itself. What there is, is a potentially positive report on the future for electric cars in general, which appeared over the weekend on the virtual pages of OilPrice.com.
In a report issued Saturday, OilPrice reviewed a new report from mining research and consultancy firm Wood Mackenzie in which the analyst described trends in electric-vehicle production and demand, and how these might affect demand for lithium for use in electric-car batteries over the next five to ten years.
The upshot: Demand for lithium (and for cobalt, nickel, and graphite, too) is set to boom as consumers buy an increasing number of electric cars. And perhaps most crucially of all, the analyst says that because of increased demand, it is pulling forward its forecast for "electric vehicle (EV) uptake ... by ten years and sees EVs mak[ing] up around 40% of passenger car sales by 2030."
Image source: Getty Images.
Now what
More electric cars on the road, and more electric cars on the road ten years earlier than predicted, holds obvious promise for Blink's business of building chargers to charge those electric cars. For a company with no profits to its name and barely any revenues (just $4.3 million recorded over the past 12 months), this seems like good news.
My only question would be: Without revenues or profits today, will Blink's business still be around 10 years from now to enjoy the coming EV boom when it finally gets here?
