What happened
Tesla (TSLA 2.37%), ChargePoint Holdings (CHPT -0.37%), and Blink Charging (BLNK 3.48%) are all ending the week on a down note after moving higher yesterday. And both moves are probably related. As of 11:55 a.m. ET, Tesla shares were off by 1.8%, while ChargePoint and Blink were down 5.1% and 7.4%, respectively.
So what
Yesterday's moves higher came after the government announced it had approved the first allotment of funds from the Bipartisan Infrastructure Law to help advance electric vehicle (EV) charging network infrastructure across the U.S. Tesla, of course, has its own network of Superchargers, but it will be getting money to modify at least some of them so other companies' EVs can use them as well. But investors may be looking deeper into the charging companies today and thinking yesterday's exuberance was a bit overdone.
Now what
Tesla is much, much more than a charging company, of course. And if it enables other EVs to use its Superchargers, it can of course make money from that (though some may argue that it will also give new EV consumers more incentive to buy other brands). Tesla is also benefiting from the more recently passed Inflation Reduction Act, though.
Image source: Tesla.
Tax incentives for Tesla buyers had expired because the company had far surpassed the 200,000-vehicle cap on those credits. That cap was not included in the new law, so Tesla buyers who meet other restrictions in adjusted gross income and electric vehicle list price limits will be able to enjoy a $7,500 tax credit again.
ChargePoint and Blink Charging are in a very different position. The recent news that $900 million has been approved to allow the majority of states to proceed with charging network expansion plans from funds provided by last year's Bipartisan Infrastructure Law is certainly a positive.
U.S. Secretary of Energy Jennifer M. Granholm said in a statement, "This first group of 35 plans from States, the District of Columbia, and Puerto Rico now have the green light to build their pieces of the national charging network to ensure drivers can spend less on transportation costs while commuting confidently by charging along the way."
Those chargers will certainly mean more revenue for many charging network companies. ChargePoint has already been quickly growing revenue. In its most recently reported quarterly period, the company grew revenue 93% year over year, and it expects to double revenue for the full fiscal year as well compared to the prior year. But turning those sales into profit is a different story.
ChargePoint lost more than $90 million in the last quarter, and Blink also reported an increase in its net losses. That reality may be why the stocks are giving back some of yesterday's gains. Tesla trades on much more than just what is related to its charging network. Its move today is likely just market gyrations, but it is worth watching how it might monetize its Supercharger network in the near future.
