What happened
Electric vehicle (EV) charging station specialist Blink Charging (BLNK 0.00%) had a fine Tuesday, trouncing the market with a 9.3% gain despite the lack of any share-pushing, proprietary news. The foot on the accelerator seems to have been an analyst report that, while not directly bullish on the company, nevertheless paints a rosy picture of the future of its industry.
So what
Bank of America (BAC 1.83%) Securities analyst John Murphy wrote a research note on California Governor Gavin Newsom's recent executive order on automobile manufacturing, which states that "it shall be a goal of the state that 100% of in-state sales of new passenger cars and trucks will be zero-emission by 2035."
Image source: Getty Images.
Murphy, while stressing that the zero-emission target is only a goal as opposed to a mandate, nevertheless believes it will help spur production of alt-fuel models. He estimates that 50% of new ones made in the next four years are going to be in this category. That's a significant number and, considering that the alt-fuel of choice these days is electricity, Blink Charging has a potentially long, rich highway stretching out in front of it.
Now what
While an interesting growth stock, Blink Charging is still a small, unprofitable company with thin (albeit quickly growing) revenue. It still has much to prove, so while Murphy's envisioned future is entirely plausible, it's meaningless to Blink Charging investors if their company can't take advantage of the opportunity it presents.
