What happened
Investors in Blink Charging (BLNK 5.59%) are not having a good Tuesday, as shares of the unprofitable electric-car charging stock had plummeted 12.2% by noon EST today.
So what
That seems a bit strange, as the news out of Blink today is positive. This morning, the company announced that it has signed an agreement with electric-bus maker Lion Electric.
As Blink explains it, many school systems and fleet operators are switching to electric school buses, and Lion will offer Blink's full line of charging stations to the school systems and bus fleets that use the company's all-electric school buses.
Image source: Getty Images.
Now what
No value was ascribed to the contract, however, nor did Blink say when Lion might begin distributing its charging stations, or how long the contract might be in effect. And in the absence of such specifics, today's news apparently doesn't outweigh investors' disappointment that the second stimulus bill, passed by Congress last week and signed by President Trump over the weekend, appears to contain precious little money for Blink.
As my fellow Motley Fool contributor Travis Hoium explained yesterday, support for Blink from the stimulus law will be minimal, with nothing specifically earmarked for building out electric charging networks, for example.
When you consider that the stock of Blink, which is unprofitable and sports less than $5 million in trailing revenue, is up some 24 times in value over the past year, it seems that investors were hoping for something a bit more robust. They're disappointed today, and they're taking it out on Blink's stock price.
