What happened
ChargePoint Holdings (CHPT +1.69%), QuantumScape (QS +2.38%), and Blink Charging (BLNK 2.98%) all joined the list of EV-related stocks sinking more than the market today. With the Nasdaq Composite index and its group of primarily growth stocks down more than 1.5% on the day, it makes sense that EV names would also be lower. But ChargePoint, QuantumScape, and Blink were down 9.9%, 6.6%, and 6.7%, respectively, as of 2:07 p.m. ET.
So what
The outperformance on the downside wasn't from specific news directly from any of these names. But as ChargePoint and Blink work to achieve profitability, and QuantumScape continues toward initial commercialization of its solid-state battery technology, investors are moving away from these early-stage companies and into more stable sectors. For example, the Dow Jones U.S. Utilities Index is actually gaining ground today.
NYSE: CHPT
Key Data Points
Now what
Concerns over inflation are hitting stocks like ChargePoint and Blink that are spending heavily on hardware to build out their networks of EV charging stations. ChargePoint is leading the industry and is approaching 200,000 charging ports in North America and Europe. That compares to a little over 36,000 chargers that Blink has sold, contracted, or deployed as of March 31, 2022.
ChargePoint has been consistently beating revenue estimates since it went public in early 2021. That included a more than 100% year-over-year increase in quarterly revenue in the fiscal 2023 first-quarter period ended April 30, 2022.
The company took another step in its growth plan today, announcing a new member of its executive team. Rick Wilmer will lead the company's efforts in manufacturing operations and customer service. He'll head the continued work to scale charging infrastructure for commercial, fleet, and residential customers. This comes as the U.S. recently passed an adoption milestone for EVs. More than 5% of new U.S. car sales are now electric, according to Bloomberg.
NASDAQ: QS
Key Data Points
QuantumScape is also counting on EV adoption continuing to grow. While it remains on track in the laboratory to move toward commercialization of its solid-state battery, that remains more than a year away. With the stock having jumped last week, investors may be thinking the macroeconomic environment is more critical to the stock's performance for now. ChargePoint has also seen a recent jump in its share price during what many analysts see as a recent bear market bounce. But today, investors that experienced that bounce are taking short-term profit and investing in less volatile areas.
