Shares of some recently hard-hit electric vehicle (EV) companies are surging today. Recent quarterly financial releases have pushed some investors to buy stocks that have dropped precipitously in recent months. Shares of Nikola (NASDAQ:NKLA), Blink Charging (NASDAQ:BLNK), and Canadian three-wheeled EV maker Electrameccanica Vehicles (NASDAQ:SOLO) have dropped between 42% and 52% in the last three months. But today, investors were buying back in. As of 12:10 p.m. EDT on Friday, Nikola was up 2.2%, Blink Charging was up 13.9%, and Electrameccanica was 7.2% higher.
Nikola shares have moved up about 6% since it gave investors a business update last Friday. Last night, Blink Charging and Electrameccanica also provided quarterly results, and investors are showing approval.
Blink reported total revenue jumped 72% versus the first quarter of 2020, and revenue from its product sales more than doubled "related primarily to increased demand for the company's commercial and residential products." Also yesterday, Electrameccanica reported progress on construction of its U.S. factory, and elaborated on the recent addition of a former executive of Magna International (NYSE:MGA) as its new chief operating officer (COO).
Blink Charging reported that almost 1,600 commercial and residential EV charging stations were contracted, sold, or deployed during the first quarter. And though sales growth was strong, the company only reported total revenue of $2.2 million for the quarter, resulting in a net loss of $7.4 million.
Electrameccanica produces purpose-built, single-seat EVs geared toward commuters. Sales for the quarter totaled just over $180,000 with production of 23 of its Solo EVs.
But the company noted progress on its new factory and technical center in Mesa, Arizona, capable of producing 20,000 vehicles. New COO Kevin Pavlov will be overseeing the growth in operations, and will "focus on enhancing profitability and efficiency," the company said.
Nikola similarly gave investors updates last week on a new Arizona factory, as well as its plans to grow hydrogen fueling infrastructure for its planned hydrogen fuel-cell electric semi trucks. Nikola remains pre-revenue, while Blink and Electrameccanica have a relatively low level of sales. But investors today are looking at the potential and some positive progress with the companies' plans.
Each of these companies is already valued at a level that will still require massive growth in business results to justify. Investors should realize these remain speculative investments if they believe in the potential growth.