Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Shares of GreenPower Motor, CIIG Merger, and Blink Charging Are Down Today

By Howard Smith - Nov 30, 2020 at 12:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The stocks of these electric-vehicle companies have been extremely volatile lately.

What happened

The stocks of three niche electric-vehicle (EV) companies are dropping sharply today. As of 10:35 a.m. EST, shares of GreenPower Motors ( GP -3.78% ) are down 14%. Shares of CIIG Merger ( CIIC ), a special-purpose acquisition company (SPAC) that is merging with U.K.-based van and bus EV company Arrival, are down 10%, while those of Blink Charging ( BLNK -10.76% ) are down 11%. 

While there is no new company-specific news today on any of these, there have been some related announcements in the EV sector today. And the stocks of each is still up significantly for the month of November. 

So what 

The EV sector took a hit this morning when aspiring electric-truck maker Nikola ( NKLA -6.12% ) announced it has revised its previously announced deal with General Motors ( GM -3.44% ) and is abandoning its Badger pickup truck project. 

GreenPower and CIIG may be moving in sympathy, as both are also in a niche EV market segment. 

Arrival van and bus on the road

Arrival van and bus. Image source: Arrival.

Arrival, which will be going public on the NASDAQ with the symbol ARVL through its merger with CIIG, has plans to make electric municipal buses and commercial transport vans. The company says the products will be priced competitively with fossil fuel vehicles and significantly cheaper than comparable EVs.  

GreenPower Motor is also building buses and vans. The Canadian company is already producing vehicles, including its EV Star shuttle bus and its all-electric school bus dubbed the BEAST (Battery Electric Automotive School Transportation).

Blink Charging doesn't make vehicles but rather charging stations. But the stocks of all three companies were soaring in November until a reversal began last week. That reversal continues today, with the Nikola news potentially contributing to souring investor confidence. 

GP Chart

GP data by YCharts

Now what  

Blink Charging was also the target of a short-seller report last week. Citron Research says it believes management is deceiving the public and that the stock will trade sharply lower. 

Separately today, short-seller Hindenburg Research released a report on Chinese EV maker Kandi Technologies ( KNDI -9.67% ), saying the company used a "scheme to falsify revenue using fake sales." 

These attacks on high-flying EV companies are beginning to affect the sector, it seems. While Arrival says it has contracts signed for a backlog worth $1.2 billion, it hasn't produced a vehicle yet. GreenPower has reported 2020 revenue of only $13.5 million from its electric shuttle vans and school buses. 

Investors in the EV sector are starting to realize that the stocks of all electric-vehicle companies are not going to continue soaring. Company-specific fundamentals have to be the ultimate driver of value, and today's move is part of that realization.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Blink Charging Co. Stock Quote
Blink Charging Co.
BLNK
$32.42 (-10.76%) $-3.91
GreenPower Motor Company Inc. Stock Quote
GreenPower Motor Company Inc.
GP
$12.47 (-3.78%) $0.49
CIIG Merger Corp. Stock Quote
CIIG Merger Corp.
CIIC
General Motors Company Stock Quote
General Motors Company
GM
$58.92 (-3.44%) $-2.10
Kandi Technologies Group, Inc. Stock Quote
Kandi Technologies Group, Inc.
KNDI
$3.31 (-9.67%) $0.35
Nikola Corporation Stock Quote
Nikola Corporation
NKLA
$9.28 (-6.12%) $0.60

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
640%
 
S&P 500 Returns
139%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/03/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.