Investing.com – Needham has downgraded two EV charging companies Blink Charging Co (NASDAQ:) and ChargePoint Holdings Inc (NYSE:) to Hold, as there is little visibility for a recovery in charging equipment demand and ongoing end-market challenges.
“We continue to see an eventual tailwind for charging equipment given the delta between the growth in the number of EVs on US roads and equipment installed, but the timing of any tailwind is now more uncertain given the change in White House leadership, which our confidence in a sustainable future decreases. order cycle for equipment that would benefit both companies,” analyst added.
Both charging operators are struggling to capitalize on the rapid growth in EV usage. Despite triple-digit revenue growth for Blink in 2023, revenue is down in 2024. Both companies recently lowered their revenue expectations due to volatile demand.
Blink in August lowered its full-year 2024 revenue guidance to between $145 million and $155 million, down from its previous forecast of between $165 million and $175 million. ChargePoint publications forecast third-quarter revenue of $85 million to $95 million in September.
The new US administration’s plans to eliminate the $7,500 EV tax credit could dampen EV adoption in the long term, further squeezing demand for charging equipment. The lack of clear federal support undermines confidence in a sustainable growth cycle for charging infrastructure.
Needham noted that while electric vehicle adoption has surged, charger installations have lagged, leading to greater use of existing infrastructure. However, this dynamic has yet to translate into a significant increase in equipment sales.
