Shares of Beam Global (NASDAQ:BEEM) have gotten crushed today, down by 31% as of 1:15 p.m. EST, as many stocks related to electric vehicles (EVs) are broadly pulling back. Beam Global offers EV charging services using solar energy.
Speculative investors betting on accelerating adoption of EVs pushed related stocks into the stratosphere during 2020, stretching the valuations of many companies and pricing in significant growth expectations. The meteoric rise has also attracted the attention of short-sellers, who may believe that EV stocks are overvalued. Beam shares skyrocketed in the final months of 2020, with gains briefly topping 1,500% prior to today's sell-off.
Meanwhile, short interest has also fluctuated meaningfully along with the stock's volatility.
The EV industry did enjoy some major milestones in 2020. Certain battery pack prices fell below $100 per kWh last year, according to Bloomberg New Energy Finance. That level is often considered a key threshold as EVs become more affordable. Investors are hoping that rising adoption will boost demand for charging services like those offered by Beam Global.
However, the company has only generated $4.5 million in trailing-12-month (TTM) revenue yet currently boasts a market cap of over $400 million, meaning the stock is trading at approximately 90 times sales. Revenue in the third quarter had fallen by 31% to $1.2 million, which Beam attributed to order delays related to COVID-19 and other delivery challenges.