What happened
Did you blink? Did you miss it? On Tuesday, electric car charging company Blink Charging (BLNK -2.97%) announced some big news that -- on any ordinary day -- probably would have sent its stock price up lightning-quick. Instead, Blink stock got caught up in the tech stock rout and dropped more than 8%.
Today, however, with the panic passed, Blink shares are finally reacting to yesterday's big news and are up 7.7% as of 1:45 p.m. EST.
Image source: Blink Charging.
So what
Specifically, the news that the state of Vermont has awarded Blink a "Statewide Charging Grant Across Vermont," funding the installation of "11 new DC fast chargers across the state in the next two years."
Now 11 charging stations -- no matter how fast they are -- probably doesn't sound like a very big deal. But according to Blink CEO Michael Farkas, because "the stations will be strategically placed across the state ... nearly every Vermont citizen will be within 30 miles of an EV fast-charging station" once the stations are in place.
Now what
And that does sound like kind of a big deal. Granted, the question remains whether people will use the chargers, and specifically, use them often enough to generate any appreciable increase in Blink's annual revenue stream, which at last report still sat at a minuscule $4.5 million per year.
I suspect that few Vermonters will in fact drive 30 miles, or 30 minutes out of their way, just to "fill up the tank" on their electric cars. Owners of electric cars would more likely calculate the hour it would take to make the trip and decide to use that time recharging at home instead. That being said, spacing out fast chargers along highways could very well attract visits from folks who are already out driving on long trips.
Investors buying Blink stock today had just better hope that's enough to move the needle on revenues.
