What happened
Blink Charging (BLNK +3.29%) stock is electric today, with its shares shooting up 10% as of 12:50 p.m. ET in response to some really big news from the electric car charging network:
General Motors (GM 1.94%) is plugging into Blink.
Image source: Getty Images.
So what
Blink announced the news this morning, advising that in cooperation with facility services company ABM Industries (ABM +0.25%), Blink will supply "IQ 200 Level 2 chargers" for use at "selected" General Motors dealerships in the U.S. and Canada "over the next several months."
Now what
Now, there are at least a couple of caveats that investors should bear in mind here. First and foremost, this appears to be more of a deal between ABM and GM than between Blink and GM, albeit Blink will be providing the chargers to ABM.
Second, it's unclear how big of a deal this is for Blink.
The company didn't say how many (or how few) "selected" GM dealerships it will be equipping with chargers or give any financial terms related to the deal. What we do know is that however big this deal is for Blink, with its $1.1 billion market capitalization, it doesn't appear to be a big enough deal for ABM to merit a press release from that company. In fact, so far, ABM hasn't mentioned it at all. (And ABM's stock price is down 3.7% today.)
In the absence of more specific guidance from Blink, though, my hunch is that we're probably only talking about a handful of charging stations and not a huge financial windfall for Blink. Until the company tells us something to change that view, I suspect that today's rally in Blink's share price will not last very long.
